Marketing-led digital banks are totally overrated: MoneyLion CEO Dee Choubey


Here’s a good excerpt from Protocol’s fintech newsletter by Tomio Geron and Benjamin Pimentel. It’s a quick 3 question hit from MoneyLion CEO Dee Choubey, who’s always on it.

On a related note, I featured Dee in a 2018 piece on the most overused word in fintech because he avoids absurd language more than his peers.

Language is important in banking. In the industry, we love fancy talk, but who really wants to hear fancy language as a banking consumer?

Nobody who’s being honest with themselves. That’s who.

And that’s why I like the last question Dee answers below the most. He says the most overrated sector in fintech is the “mono-transactional, marketing-led digital banks.”

The rest of the quote explains why, and I couldn’t agree more.

Marketing is key, but it’s not the key to banking longevity.

What fintech trend is most troubling for you?

I think one trend that is particularly troubling is retail investors getting hurt by fad investment themes due to the lack of understanding of risk. We have seen a few big examples recently where people are getting caught up in what they think are quick-win momentum investments. As a result, they then put off using the power of compound growth of a diversified strategy that historically has shown to drive better results over the long run. Creating greater access to the financial markets is just one aspect of enabling wealth for more people.

What fintech company (besides your own) have you been most impressed with this past year?

We have seen an increasing labor shift to the gig economy and we really care about empowering hard-working Americans to not only save and invest, but also to earn more. The type of fintech[s] we are impressed by are those that allow creators to earn by leveraging their passions, such as selling bespoke goods to a marketplace or earning more through providing services pseudonymously. That’s going to be a big trend over the next five years, the act of untethering services from identity.

What fintech sector or company is most underrated and overrated right now?

The most underrated sector is providing credit to consumers and the most overrated sector are mono-transactional marketing-led digital banks, because in the long term, banking is about providing advice and credit, not just a free debit card marketed by an influencer on TikTok.


3 questions on fintech (aka cool, new) banking with MoneyLion CEO Dee Choubey

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