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.

Core Business Areas

• Credit Products: OppFi facilitates installment loans and credit cards through partner banks to consumers who are often underserved by traditional financial institutions.
• SalaryTap: A payroll deduction loan program offered to employees through their employers.

Leadership and Structure

Todd Schwartz is the Executive Chairman and CEO. The company operates with a board of directors overseeing its strategic direction.

Key Offerings

• Installment Loans: Personal loans offered through partner banks. OppFi's origination platform facilitates this offering. Competitors include Upstart, LendingClub, and other online lenders. Revenue from installment loans constitute a significant portion of OppFi's total revenue. Market share data is highly fragmented across the online lending landscape, with no single dominant player.
• OppFi Card: A credit card aimed at the near-prime consumer, offered through a partner bank. Competitors include Capital One, Credit One Bank, and other issuers targeting similar demographics. The OppFi card's revenue contribution is growing but smaller than the loan product. Market share data is highly fragmented.
• SalaryTap: A payroll deduction loan program offered to employees through their employers. Competitors include Kashable and other providers in the employer-sponsored lending space. The SalaryTap's revenue contribution is less than the loan product. Market share data is highly fragmented.

Industry Overview

The fintech lending industry is characterized by increased competition, evolving regulatory landscape, and growing consumer demand for alternative credit solutions.

Positioning

OppFi positions itself as a provider of responsible credit solutions for underserved consumers. Its competitive advantage lies in its technology platform and partnership model with banks.

Total Addressable Market (TAM)

The estimated TAM for near-prime lending in the US is substantial, potentially exceeding $200 billion. OppFi is positioned to capture a portion of this market by offering access to credit and financial solutions.

Key Competitors

• LC
• SOFI
• UPST

Competitive Landscape

OppFi faces competition from established fintech lenders, traditional banks, and other alternative credit providers. Its advantages include its technology platform and focus on underserved consumers. Its disadvantages include its smaller size and limited brand awareness.

Historical Growth: OppFi's historical growth has been driven by the expansion of its lending platform and increased demand for its products. However, it's growth has slowed as of late.

Future Projections: Future projections are subject to market conditions and analyst estimates. Analyst estimates are not avilable at this time.

Recent Initiatives: Recent initiatives include focusing on its credit card product, expanding its partnership network, and investing in technology and data analytics.

OppFi is a fintech company focused on serving the underserved market, partnering with banks to offer credit products. While the company has a technology platform and partnerships as strengths, it faces competition, regulatory hurdles, and relies on partner banks. Growth opportunities lie in new products and expanded partnerships, but economic downturns and cybersecurity pose threats. The company needs to focus on brand building and diversifying its offerings to maintain a competitive edge.

Data Sources:

• Company filings, industry reports, market data

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.