MoneyLion, a mobile banking platform, has secured $160m in funding to support the expansion across the US.
Growth equity firms Edison Partners and Greenspring Associates co-led the new round, while Capital One, a diversified bank, provided a strategic investment. Other contributions came from MetaBank and FinTech Collective.
The funding comprised of a $60m previously unannounced investment and a $100m Series C. With the close of the round, the company has raised a total of $200m since it launched in 2013.
MoneyLion is a US-based challenger bank which helps consumers get a holistic picture of their financial status and take measures to improve it. Offerings include aggregating banking, investing, credit-building, rewards, loans, and financial wellness products.
The WealthTech offers a bank membership which gives clients access to fee-free checking, access to over 55,000 ATMs, and zero-fee managed investment accounts.
Through the new batch of capital, the company is looking to expand its product offerings by releasing a selection of new and innovative financial tools, including 0 per cent APR daily cash advances to support cash flow for members.
Other new features include a high-yield cash account and a stock trading platform which lets members invest in individual companies.
MoneyLion also plans to use the funds to support the customer growth across the US and drive adoption of its banking services.
Last year, the FinTech helped members avoid over $7.2m in traditional banking fees, generate $12m in cashback rewards, and aided 70 per cent of its customers to increase their credit scores by 30 points, it claims.
MoneyLion CEO and founder Dee Choubey said, “The strategic investment from these leading financial institutions validates our mission and approach and demonstrates their acknowledgment of a dynamic shift in consumer banking. It also reinforces consumer demand for fintech solutions that provide Americans with unprecedented access to the most powerful financial products and services in a single, integrated platform.
“More than just a challenger bank, MoneyLion is a membership destination that’s given its more than five million members a chance to once and for all take control of their financial futures.”
Last year, the company secured $42m in its Series B round which was led by Edison Partners.
Challenger banks around the world have made a lot of noise over the past couple of weeks. Notably, German challenger bank N26 increased the size of its Series D round to $470, driving its valuation up to $3.5bn.
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