MoneyLion’s Customer Growth Surges 54% on Ecosystem Upgrades

MoneyLion’s third-quarter results showed double-digit growth in customers and revenues as individuals gravitated to what the FinTech’s management termed the company’s “digital ecosystem” for personal finance — with the app and marketplace as key centerpieces.

Investor materials noted that total revenues gained 23% to $135 million. Enterprise revenues were up 18% to $45 million. The company’s total customer count surged 54% year on year to a recent 18.7 million, as MoneyLion added 1.6 million customers in the quarter.

CEO Dee Choubey said on the conference call with analysts that MoneyLion is executing on its recently announced roadmap “of becoming the number one destination for financial decisions” and said the company is seeking “improving conversion metrics across our marketplace.”

Those conversions will see tailwinds from MoneyLion Checkout, which Choubey said
will unify and simplify the financial product shopping experience in the same way that online marketplaces fit for the online travel industry. These are crucial drivers that position MoneyLion for accelerating growth exiting the year.

Shares accelerated by 9% at the start of trading after results were released Thursday (Nov. 7).

Customer Count Is Growing

MoneyLion ended the third quarter with 18.7 million customers, which was 54% higher than a year ago 1.6 million new customers joined, quarter over quarter.

“To put this in perspective,” said Choubey, total customers have grown about 3.5 times since Q3 of 2022. And we’re happy with this growth, but more importantly, we’re increasing the products consumed on our platform.” As of the end of the third quarter, 30.7 million products had been consumed across MoneyLion’s platform, said Choubey, and product consumption grew from 2.4 million in the second quarter to 3 million in the third quarter.

“Every time we add a customer to the MoneyLion platform, we have the ability to cross sell, retarget, and monetize these customers,” added Choubey. The company added 1.8 million third-party products alongside 1.2 million first-party products, which management said on the call is scaling the company’s marketplace platform; the consumer-related revenues are highly recurring in nature, according to comments made on the call. “Consumer marketplace conversions are increasing as customers repeatedly turn to our ecosystem for financial decisions,” he said.

Additionally, “when we talk about enterprise growth, we’re also talking about the integration of the marketplace within the MoneyLion Consumer App, which is one of the key components of the enterprise business equation,” said Choubey, who said in later remarks, “We are becoming the de facto ecosystem for any financial services provider in the industry looking to acquire highly vetted in market consumers.” Demand for loans should increase as interest rates decrease, said Choubey, noting that non-personal loan revenue represented half of marketplace revenues in the third quarter.

“We expect continued stabilization through the first half of next year as well as lenders revisit their acquisition strategies in a lower interest rate environment,” said Choubey. Other key verticals include credit cards, with MoneyLion offering decisioning models of partner issuers to deliver personalized prequalified offers to users.

He said the recent introduction of MoneyLion Checkout platform will boost conversions by enabling consumers to “complete financial transactions across hundreds of providers in real time without leaving the MoneyLion platform. By integrating consumer and third-party data directly with MoneyLion’s product partners, these providers can increase conversions and expedite onboarding,” said Choubey.

Pilot partners leveraging MoneyLion checkout have seen increases across key metrics, such as a 25% improvement in click through rate, a 2.5 times increase in conversions and a 30% or more increase in revenue, he said.

“We see this as an innovative sea change technology, where financial institutions, lenders, credit card providers, banks can  embed their decisioning, on the MoneyLion hosted environment. That allows us to really be deep in the funnel, across multiple products,” he said during the question-and-answer session with analysts.

CFO Richard Correia said that the company expects to see revenue growth accelerate in the current quarter to 34% to $151 million.