Lions and Bears and Revenue from Predatory Interest Rates

Dave, MoneyLion report hundreds of millions in revenue

Photo by Il Vagabiondo on Unsplash

Short-term loans are big business and can mean big money, even more so if they are offered in a cool, fintech-y way. I’ve written about the predatory practices of companies like the Dave App and MoneyLion.

Should You Get a Short-Term Loan from the Dave App?

Minnesota Borrowers to Receive Refunds in State’s Settlement with MoneyLion

As noted in those stories, both of these fintech lenders (and to be clear, MoneyLion is moving far beyond lending), offer small-dollar, short-term loans that carry APRs in the triple digits.

Turns out, that generates a ton of revenue.

As Jason Mikula of Fintech Business Weekly notes:

The rest of Dave’s revenue is “Service based,” which is primarily composed of “optional” tips and express funding fees. Dave reported $43 million of…