In modern times, the traditional methods of banking seem almost obsolete. Requisition of personal financial managers has been eliminated. For example,
In modern times, the traditional methods of banking seem almost obsolete. Requisition of personal financial managers has been eliminated. For example, a simple app called Mint does all the money management you may ever need. You set it and it even tells you what payment to make, when and where. It even monitors your spending habits so you don’t spend too much. Mobile banking platforms such as m-pesa have made financing on the go to be quite easy. These days the necessity to go to a bank for a loan is almost completely pointless. With loans on mobile banking platforms and other apps like SoFi or Lending Club. The world market is basically outdating traditional banking and substituting it for mobile banking and apps that do the same.
Seeing the market changing from traditional banking to apps, CEO Diwakar Choubey and his team began the development of MoneyLion in 2013. MoneyLion is an app that is tailored for provision of personal loans as well as monitoring your credit. They also monitor your spending and try to alter bad spending habits by positive reinforcement and indirect suggestions. This may really help to change your spending habits.
A lot of people experience hyperbolic discounting. This is a tendency of people to prefer choosing a temporal current reward without considering the long term effect of that choice. This inconsideration given to the later reward is termed to as discounting its value as it is a delayed reward. For example, if one buys an expensive TV set using their credit-card, they do not consider the bill to be mailed later. The brain does not allow for this consideration. With an average credit score- checking rate of 3.9 times per month, MoneyLion reduces the chances of hyperbolic discounting. It makes one stressed in the short-term but reduces the chances of long term stress. This changes spending habits of the individual eliminating poor decision-making that may lead to overspending. All this was conceptualized by the company’s behavioral architects among them Tim Hong.
To prevent fraud MoneyLion have come up with a facial recognition system. Since the platform is a mobile app, whenever a verification photo is required all one does is take a selfie. The company uses one’s data to know when to recommend a loan to smoothen things.
The application even gives the customers monetary rewards in exchange for loyalty. The data that the company acquires is also quite useful in knowing what kind of rewards to give. They grow your reward the more you use the platform. This ensures the platform sustains its customers.