Helping shield middle market Americans against financial uncertainties
Table of contents
Beem is a revolutionary Super App designed to make life more affordable for millions of Americans. Launched in 2021, Beem addresses the market of working Americans looking for comprehensive financial solutions to help them navigate the complexities of modern financial life.
With over 5 million downloads and more than 3 million satisfied active customers, Beem has disbursed over $100 million to help prevent financial emergencies and processed over $250 million in payments, demonstrating the app’s significant impact on its users' financial lives.
Since integrating TruStage™ Payment Guard Insurance into its Super App, Beem has experienced a 25% increase in Average Revenue Per User (ARPU) and a 25% month-over-month growth in unique subscribers opting for Beem’s plans with Payment Guard.¹
The challenge
Identifying the critical gaps and needs of workers
With over 78% of Americans living paycheck to paycheck, financial vulnerability has become a pressing issue for today’s middle market consumers.² Beem recognized the need to address a growing challenge faced by many hard-working middle market Americans: unexpected life events, particularly unexpected job loss and disability.
Current data suggests 1 in 4 of today's 20-year-olds are likely to become disabled at some point during their career, which could lead to financial burdens or even long-term unemployment.³ What’s more, 21% of those long-term unemployed individuals could be jobless for 27 weeks or even longer, putting an immense strain on an already stretched budget.4 In the unpredictable economic climate, many individuals and families struggle to make ends meet, especially when faced with sudden income disruptions.
To help combat a lack of financial resilience, many middle market consumers needed access to affordable, comprehensive financial products that could help provide a safety net for unforeseen circumstances.
Beem recognized that traditional financial services often failed to provide holistic, accessible solutions that could alleviate these concerns, especially for the nation’s middle market. To address this challenge, the company created a Super App that could serve multiple financial needs all in one place, and at a price point that is affordable and accessible to most Americans.
To support their efforts, Beem wanted a reliable partner to help provide robust job loss and disability insurance coverage as a seamless, integral part of its offerings. Ideally, Beem was seeking a company that not only had the right tools but was also aligned with their vision to be a trusted navigator in its users' financial journeys.
1 in 4
of today’s 20-year-olds are likely to become disabled at some point during their career.³
The solution
Integrating TruStage Payment Guard to help enhance users’ financial wellbeing
When evaluating potential partnerships, Beem looked for an organization with a strong industry reputation and a shared commitment to empowering individuals. This led the company to select TruStage Payment Guard Insurance, the industry-first embedded payment insurance solution for lenders that helps protect borrowers’ payments when they encounter financial hardship due to covered job loss or disability.
TruStage was named by Forbes as one of America's Best Insurance Companies 2024. With a belief that a brighter financial future should be accessible to everyone, TruStage perfectly complements Beem’s mission to provide essential resources to successfully navigate financial uncertainties. By integrating digital lending insurance solutions, Beem can now offer a more robust financial safety net, addressing critical needs like involuntary job loss and disability protection. Together, TruStage and Beem are helping to create a more equitable society and financial system to make life affordable for millions of middle market Americans.
The implementation
Beem was able to seamlessly incorporate the new benefit into its existing plan structure, making it easy for users to access
Beem and TruStage worked collaboratively to ensure the best experience for users, while being conscientious to not cause confusion about the product. Prior to integration, both partners pulled together the right mix of resources, including product, marketing, IT and UX to help ideate the integration.
To integrate TruStage’s digital lending insurance features, Beem updated its app interface to ensure a smooth user experience. The insurance features were embedded into Beem’s existing subscription plans, priced at less than the cost of a cup of coffee per month. A secure data-sharing system was then established, which allowed efficient claims processing while safeguarding user information. Beem also developed educational resources and trained its customer support team to assist users with the new features. The integration was meticulously tested for functionality and compliance, followed by a phased rollout to ensure a seamless transition for all users.
Measurable success
Improved customer retention and revenue growth
The integration of TruStage’s Payment Guard Insurance into Beem’s Super App has led to significant improvements in several key areas critical for business success.¹
- Beem has experienced a 10% lower churn rate among users subscribed to plans with the TruStage benefits, reflecting a higher customer engagement.
- Beem and TruStage have also successfully provided a financial backstop to over $3.75M in aggregate loan balances that may help lower their risk of going into default, protecting over $575M in outstanding loan balances since its launch.5
- The introduction of the new plan has contributed to a 25% increase in Average Revenue Per User (ARPU) and a 25% month-over-month growth in unique subscribers opting for Beem’s plans with TruStage’s embedded payment insurance.
- The rollout of a new plan tier expanded Beem’s product lineup, further enhancing its overall value proposition and potential boost for customer satisfaction and retention.
Want to learn more?
Learn more about embedded insurance and loan payment protection products at TruStage Payment Guard Insurance.
What customers are saying
Voices from the field
Anonymous customer testimonials
- “This plan has been a lifesaver! I lost my job unexpectedly, and the payout helped me cover my bills during a tough time.”
- “I upgraded to the new plan because the added protection gave me peace of mind. It's great to have that safety net.”
- “The income protection benefit gives me peace of mind. Knowing I have a safety net if I lose my job makes me feel more secure about using the cash advance service.”
- “Filing a claim was straightforward, and I received the payout when I needed it most. This service has been a lifesaver during a difficult time.”
Key takeaways and impacts of the partnership:
Market differentiation:
The partnership has helped differentiate Beem’s product in a competitive market. Offering a benefit that directly addresses a significant pain point — unexpected loss of income due to job loss or disability — has made Beem’s subscription plans stand out compared to the competition.
Value-added offering:
Integrating TruStage Payment Guard has added substantial value to Beem’s subscription plans, making Beem more attractive to users. This has driven both new subscriptions and plan upgrades.
Enhanced customer loyalty:
Offering tangible financial protection has strengthened customer loyalty, as evidenced by the increase in subscription renewals and positive feedback.
Operational learnings:
The partnership has provided valuable insights into claim management processes and the importance of clear, effective communication with users to ensure they understand the benefit and how to access it.
Looking forward
The road ahead
Continuing its success, Beem plans to enhance its platform through several strategic initiatives with TruStage, beginning with implementing API integration for real-time claim status updates. The platform is looking to expand its insurance offerings by incorporating additional products. Also on the roadmap is the development of AI capabilities to provide personalized messaging related to financial advice and insurance. Leveraging user data, Beem will develop customized coverage options and pursue new strategic partnerships to enrich its financial ecosystem.
Additionally, the company is exploring a possible international expansion featuring its partnership offerings, and the introduction of sustainable finance options, which would include environmentally and socially responsible investment and insurance options. Beem aims to build a community within the app for users to share financial tips and experiences and will employ predictive analytics to help users anticipate and address their financial challenges.
