Americans lost $15bn to overdraft fees in 2016, and over half of the American financial middle class has at least one overdraft fee per month. Portfolio company MoneyLion is helping its mobile app users prevent these bank charges through real-tie alerts and personalized budgeting tools.
“Excessive bank charges are putting many hard-working Americans in a bind,” said MoneyLion’s CMO, Tim Hong. “Consider the example of an individual who swipes their debit card to buy lunch and again to pay for a medical prescription on their way home, while their phone bill goes through the same day. If their account balance happened to be below the combined value of these purchases, they’d be looking at anywhere between one and three overdraft charges. At an average of $34 each, these charges could even exceed the value of the initial purchases.