MoneyLion's recent Q4 2023 and Q1 2024 earnings calls were met with well-deserved praise. Analysts applauded the company's impressive growth, robust profitability, and strategic partnerships. But hidden within the financial details and optimistic pronouncements, there lies a less discussed but potentially revolutionary aspect of MoneyLion's business model: the 30/60/90 strategy. This approach to customer acquisition and product margins could be the key to not only navigating the current economic headwinds, but also establishing MoneyLion as a dominant force in the fintech landscape.

The 30/60/90 strategy, briefly mentioned by CFO Rick Correia during the Q4 call, reveals a tiered approach to product margins based on customer engagement and product type. The beauty of this strategy lies in its simplicity and its strategic alignment with MoneyLion's overarching "marketplace-first" philosophy. Let's break it down:

30%: The Gateway Drug of Fintech

MoneyLion aggressively pursues new customer acquisition, boasting a massive top-of-funnel driven by a network of over 1,100 enterprise partners and millions of customer inquiries. These initial interactions, often focused on third-party products like credit cards and insurance, are strategically priced with a lower 30% product margin. This functions as a loss-leader, enticing customers into the MoneyLion ecosystem at an attractive cost. It's the "gateway drug" of fintech, drawing users in with a compelling initial offer.

60%: Deepening the Relationship

Once a customer enters the ecosystem, MoneyLion's AI-powered algorithms kick into high gear, personalizing the experience and strategically recommending their own first-party products. These include innovative offerings like RoarMoney, Instacash, and the MoneyLion WOW membership. These first-party products boast a higher 60% product margin, reflecting the increased control and deeper customer relationships they cultivate. This stage is all about solidifying the bond, building trust, and showcasing the value of a long-term relationship with MoneyLion.

90%: The Loyalty Payoff

The real magic happens in the final stage of the 30/60/90 strategy. Once a customer is embedded in the MoneyLion ecosystem, engaging with both first- and third-party products, the company's cross-selling algorithms come into play. These sophisticated systems leverage the wealth of data collected on customer preferences and financial needs to pinpoint the perfect "next-best offer." This hyper-personalization, combined with the trust built through previous interactions, allows MoneyLion to achieve a staggering 90% product margin on these subsequent product sales. It's the ultimate loyalty payoff, rewarding engaged customers with tailored solutions while driving significant profitability for the company.

Beyond the Numbers: A Holistic Approach

The brilliance of the 30/60/90 strategy goes beyond the impressive margin progression. It embodies MoneyLion's deep understanding of the evolving consumer landscape and the power of building a trusted brand in the often confusing world of personal finance.

MoneyLion isn't just a marketplace; it's a financial companion, guiding customers through complex decisions, providing educational resources, and offering personalized solutions. The company's investments in AI-powered search, cutting-edge content creation, and personalized financial management tools solidify this position, fostering engagement and loyalty that fuel the 30/60/90 flywheel.

The EY Partnership: A Validation and a Catalyst

The recently announced strategic alliance with EY further validates MoneyLion's marketplace dominance and amplifies the potential of the 30/60/90 strategy. By partnering with this trusted giant in the financial services sector, MoneyLion gains access to a vast network of smaller banks eager to embrace digital transformation and compete in the increasingly digital-first consumer landscape.

This distribution deal could be a game-changer, exponentially expanding MoneyLion's reach and bringing its 30/60/90 strategy to a whole new audience. Imagine thousands of local banks offering MoneyLion's marketplace of financial products to their customers, seamlessly integrated into their existing digital platforms.

Hypothesis: A Future of Fintech Domination?

While the 30/60/90 strategy is still in its early stages, the evidence suggests it could be a powerful engine for sustainable growth and profitability. The combination of aggressive customer acquisition, strategic product pricing, and AI-powered personalization is already driving impressive results.

Consider these key figures from MoneyLion's Q1 2024 Earnings Call:

<ul>

<li><strong>Q1 2024 Revenue:</strong> $121 million (29% YoY growth)</li>

<li><strong>Q1 2024 Adjusted EBITDA:</strong> $23 million (19.4% margin)</li>

<li><strong>Total Customer Inquiries:</strong> 80 million (Q1 2024)</li>

<li><strong>Total Products Consumed:</strong> 25.3 million (Q1 2024)</li>

<li><strong>Third-Party Product Mix:</strong> 49% (Q1 2024)</li>

</ul>

Total Customer Growth

The following chart illustrates the growth in MoneyLion's total customer base over the past several quarters.

These numbers, combined with the EY partnership and MoneyLion's relentless focus on innovation, suggest a company poised for continued success. As the company continues to refine its algorithms, expand its product offerings, and deepen its customer relationships, the 30/60/90 strategy could become a powerful competitive advantage, driving MoneyLion towards a dominant position in the rapidly evolving world of fintech.

"Fun Fact: MoneyLion's name is a play on words, combining "money" with "lion," symbolizing financial strength and empowerment. The company's logo, a stylized lion's head, further reinforces this message."