Are investment advice apps the future?

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Michael Doniger, Head of Investing at MoneyLion, joined “On Purpose” host Tyrone Ross to discuss the importance of education, access, and tools for financial services. Read on to learn about how MoneyLion is helping 3.8 million hardworking Americans live their best money life with data-driven products and a comprehensive financial education strategy.

MoneyLion solutions are built to help people at different stages of their financial lives

With over 14 years of experience in the financial services industry, Mike Doniger has a keen understanding of MoneyLion’s demographic and how they’re based on the company’s broad selection of solutions. “Our main goal is to provide [financial] access, education, and tools to people who are at different points in their financial journey, whether it’s times of excess or times of need. We have people who need to bridge the gap to their next paycheck, and we also have people who are looking to get ahead in their financial lives by building their savings with their investments. Half or more of our members are first-time investors, so we’re helping them get started on their path for building for the future.”

Mike then went on to discuss MoneyLion’s fully-managed portfolios and how they make investing simple for people who want to start with as little as $5. “Our fully-managed portfolios [through Wilshire] work the same way for someone with $5 to invest as they would for someone with $50,000 to invest… So we’re delivering a high-quality offering for our members without some of the friction points they may run into at a traditional wealth management firm or with advisors.”

How MoneyLion compares to traditional financial institutions and advisors 

It’s no secret that there is a huge segment of the American population that is underserved by traditional financial institutions and advisors. Millions of people want to get into crypto or investing, and they just need the right set of tools to do it. They’re looking for educational content and guidance that’s missing from some digital providers. That’s where MoneyLion comes in. Mike said, “One of the things we’re focused on is getting people content and motivating them on their journey for investing specifically. Whether they’re new to investing or have invested previously.”

While elaborating on MoneyLion’s commitment to helping members learn about crypto, Mike said, “MoneyLion’s mission is all about giving [financial] access and education, so at the end of last year, we launched new crypto capabilities that allow members to invest in Bitcoin and Ethereum. We wanted to help people get into the crypto space with some of the larger, more popular forms of cryptocurrency, and we’re taking a measured approach in terms of the additional cryptocurrencies we offer on our platform. We want our members to enter the space responsibly.”

One of the key differences between MoneyLion and other financial companies that offer investing and crypto products: They allow members to Round Up their spare change from qualified purchases into cryptocurrencies. For now, they offer Round Ups into Bitcoin or a managed investment account, and this handy feature helps members “build their [financial] position in a way that is automated but also behind the scenes so members can start as small as they want. Round Ups helps create good savings habits.”

Even better, MoneyLion just started allowing members to use any credit or debit card to Round Up. So they’re not limited to a specific card or bank account. Members can use any of their cards, and this opens the door for more people to take advantage of this unique feature and opportunity. As more people join MoneyLion to use these exciting tools, there’s going to be a higher demand for introductory crypto and investing content, and MoneyLion has a strategic educational strategy in place.

Educational content is going to take on a bigger role at MoneyLion

Everything MoneyLion does is geared toward education and giving access to financial opportunities. MoneyLion has a blog with a ton of content called MoneyLife, and they have short-form content in the app through MoneyLion Academy that not only explores the basics of crypto and specific currencies but also different concepts to consider when purchasing crypto or investing more broadly. 

When asked about the future of MoneyLion content, Mike said, “In general, content is going to become a bigger part of MoneyLion and not just related to investing. We want people to consume content with not just financial topics but also lifestyle. This content will be from influencers, news — anything to keep people informed and motivated on their journey. We’re going to offer different channels, mediums, etc. so it won’t just be blog articles. It will be educational videos, different series, and we’re going to use data to deliver the right content to the right people at the right time. So we’ll provide members with guidance and advice they may get from a traditional advisor normally, but we’re going to give it contextually as part of the experience.”  

Listen to Mike’s On Purpose podcast interview today

Missed the On Purpose podcast? No problem. Listen to it for free today. And keep your eyes peeled for more podcasts with members from the MoneyLion team! 

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