- 63% of respondents cite getting out of debt as their top financial concern for 2017
- 54% are optimistic about improving their finances this year
NEW YORK - February 1st, 2017 - Financial resolutions are top of mind for the money-conscious at this time of year, and a new survey of more than 800 American consumers conducted by digital personal finance platform, MoneyLion, shows that people are feeling good about their financial goals. In fact, 54 percent of users surveyed expect their financial situations to improve in 2017. When asked how, respondents identified getting out of debt (63%), improving credit scores (57%), and better managing expenses (38%) as among their top objectives for the year.
Despite the optimism revealed by the survey, the results also uncovered some risky assumptions consumers are making about their finances: The survey also revealed that 66 percent of respondents are relying on higher income in 2017 to pay for their expenses, yet only 52 percent expect to earn more this year. Added to this, a quarter of those surveyed do not track their expenses with 75 percent of that group saying it’s because they don’t know where to start.
Given that 46 percent of Americans don’t have $400 saved for an emergency, according to the Federal Reserve Board, better management of expenses is certainly top of mind for consumers in 2017. The results of MoneyLion’s survey echoed this reality, particularly as it relates to healthcare. In fact, 31 percent are worried about unexpected medical bills in 2017.
“These survey results show that Americans are dedicated to reaching their financial goals in 2017 but still need some help getting there. The good news is that today consumers have a host of smart digital tools at their disposal to help them on the road to financial wellness,” said MoneyLion SVP of Marketing & Product, Tim Hong. “At MoneyLion we’re working to make it easier for consumers to engage with their finances by providing a set of data-driven tools and smarter credit products that help them manage their entire financial lives in one place.”
According to the survey, the benefits of these tools are beginning to show: 84 percent of respondents know their credit score, and 42 percent of those saw their score improve in 2016. A separate study conducted by MoneyLion in 2016 found that their loan takers who make use of the platform’s free credit monitoring tools were 28 percent less likely to default.
“These reinforce our belief that providing more transparency to credit scores can empower individuals to start take steps to improve their credit health and get out of debt,” added Hong.
MoneyLion is helping consumers put this knowledge to good use in a number of ways. Firstly with their in-app credit simulation tool, which projects how certain actions such as taking out a new credit card or paying off a loan will impact their credit score. MoneyLion further reinforces positive decision-making through its rewards program where users can earn points for positive financial behavior, which can be redeemed for gift cards or interest rate reductions on loans of up to 15 percent. To date, roughly $5 million in savings has been passed on to users via rate reductions.
For the full survey results, click here.
MoneyLion is a leading mobile finance platform that empowers consumers to take control of their financial lives through smarter spending, saving and credit tracking tools, as well as better credit products. Founded in 2013 by a team of leading technologists and financiers, MoneyLion uses superior analytics and machine learning-based risk technology to gain a 360-degree view of its users’ personal finances, enabling better underwriting and the development of tailored financial advice. With its built-in system of endorsements and points, MoneyLion rewards good financial behavior and empowers customers to optimize their everyday financial decisions. MoneyLion is headquartered in New York with offices in San Francisco and Kuala Lumpur, Malaysia. For more information, visit www.moneylion.com or download the app here.