OppFi Inc (OPFI)

History and Background

OppFi Inc. (formerly known as FG New America Acquisition Corp.) was founded in 2012. It is a financial technology platform that powers banks to help everyday consumers gain access to credit. OppFi completed its SPAC merger in July 2021.

Core Business Areas

• Personal Loans: Provides installment loans to consumers with limited access to traditional credit, offering a range of loan sizes and terms.
• SalaryTap: Offers a financial wellness benefit where employees can access loans repaid through payroll deduction.
• Card Products: Operates a credit card business offering cards to underserved consumers

Leadership and Structure

Todd Schwartz is the Executive Chairman. The organizational structure includes departments focusing on technology, finance, operations, and customer service.

Key Offerings

• Personal Loans: The core product is personal installment loans, designed for consumers with limited credit access. Competitors include OneMain Financial (OMF), Enova International (ENVA) and LendingClub (LC). Revenue from this product is the largest revenue driver.
• SalaryTap: Provides financial wellness programs enabling employees to access loans repaid through payroll deductions. Competitors include Kashable and HoneyBee. It accounts for a smaller, but growing portion of revenue
• Card Products: Provides credit card product to underserved consumers. Competitors include Capital One (COF) and Avant.

Industry Overview

The industry operates in the fintech sector, which provides financial services to non-prime consumers through alternative lending and other credit products. It is characterized by a growing demand for non-traditional credit options.

Positioning

OppFi Inc. positions itself as a technology-driven platform offering better access to credit and financial services for underserved consumers. Its competitive advantage lies in its data analytics and technology platform. A significant portion of its clients may not be prime clients.

Total Addressable Market (TAM)

The TAM for non-prime lending is estimated to be in the hundreds of billions of dollars. OppFi's position is to capture a growing share of this market through its technology-driven approach.

Key Competitors

• OMF
• ENVA
• LC

Competitive Landscape

OppFi Inc. competes with traditional lenders, fintech companies, and other alternative credit providers. It aims to differentiate itself through technology, data analytics, and partnerships.

Fincura

• Year: 2023
• Acquisition Price (USD millions): 12
• Strategic Rationale: Allows small business owners to leverage real-time financial data for their business decisions

Historical Growth: OppFi Inc. has demonstrated rapid revenue growth since 2012 and especially over the last 3 years.

Future Projections: Analyst estimates suggest continued revenue growth with increased profitability as the company matures.

Recent Initiatives: Recent initiatives include expanding product offerings and increasing partnerships with banks and employers.

OppFi Inc. is a growing fintech company focused on providing financial services to underserved consumers. While they have shown strong revenue growth, they must navigate a challenging regulatory landscape and a potentially volatile customer base. Their focus on technology and partnerships could be key to sustained success, but monitoring competition and economic conditions is crucial. They need to keep an eye on regulation and keep on a path of diversification.

Data Sources:

• OppFi Inc. SEC Filings
• MarketWatch
• Analyst Reports
• Company Press Releases

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual research and consultation with a financial advisor. Market share data is approximate.