#BankTech / Behind MoneyLion’s shift to an ‘à la carte’ subscription model

Challenger bank MoneyLion is moving away from an ‘all-in’ subscription bundle model to segmented offerings for a diverse client base across the wealth spectrum.

Throughout its history, the company has offered subscription bundles at varying price points… Now, MoneyLion has unbundled its offerings into smaller, bite-sized pieces… the new approach was based on customer feedback and the necessity to make membership more accessible.

MoneyLion’s checking account… includes access to paychecks two days early, a network of fee-free ATMs and low fees. Its unique features include Shake ‘N’ Bank, where customers shake their phones at the point of sale with cashback rewards that are deposited into their investment accounts, and purchase price protection, in which customers are eligible for rebates when items purchased are cheaper elsewhere.

[CEO:] “It’s a very fun way to think about financial access.. It’s another way for [consumers to think about] financial literacy, where our consumers are now on an active basis thinking about the cross section of banking, investing and credit.”

MoneyLion’sCredit Builder loans offer access to credit without a credit check with varying APRs (5.99% to 29.99%) depending on the customer. According to the company, much of the $19.99 monthly Credit Builder membership fee can be recouped by regularly logging into the app and meeting a minimum number of transactions through the debit card. Meanwhile, on the investing side, the company recently added a series of thematic investing solutions, including ETFs aligned with environmental, social and governance characteristics.