OppFi Inc (OPFI)

History and Background

OppFi Inc., formerly known as FG New America Acquisition Corp., was founded in 2012. It's a financial technology platform that powers banks to help everyday consumers gain access to credit. Initially focused on short-term loans, it has expanded into other financial products. In July 2021, OppFi started trading on the NYSE.

Core Business Areas

• Installment Loans: OppFi provides installment loans through its platform, designed for borrowers with limited access to traditional credit. These loans typically have fixed interest rates and repayment schedules.
• Credit Card: Offers a credit card, OppFi Card, aimed at borrowers who are rebuilding or establishing credit, often secured.
• SalaryTap: A payroll deduction loan program offered through employers.

Leadership and Structure

Todd Schwartz is the Executive Chairman. The organizational structure includes departments for technology, risk management, marketing, and finance. As of March 11, 2024, Neville Crawley is the CEO of OppFi.

Key Offerings

• Installment Loans: OppLoans is the primary installment loan product, aimed at subprime borrowers. Specific market share data is not readily available, but the market is competitive with companies such as Enova (ENVA) and Elevate Credit (ELVT). Loan volume and APR's may differ between states depending on current state regulatory changes. Competitors include Enova, Elevate Credit, and traditional payday lenders.
• OppFi Card: A credit card designed for those building or rebuilding credit. Competitors include OpenSky, Credit One Bank, and secured credit cards from various issuers. Market share and revenue data specifics are not disclosed.
• SalaryTap: A payroll deduction loan program with competitors such as Kashable and several regional providers. Specific revenue or user data is not publicly released. Competitors include Kashable and TrueConnect.

Industry Overview

The fintech lending industry is competitive and evolving, characterized by increasing regulatory scrutiny, technological innovation, and a growing demand for accessible financial solutions. It caters to the underserved subprime market.

Positioning

OppFi aims to differentiate itself by providing access to credit for the subprime market and using technology to streamline the lending process. They position themselves as a responsible lender, offering products and services that help customers improve their financial health.

Total Addressable Market (TAM)

The subprime lending market TAM is estimated to be in the tens of billions of dollars annually. OppFi is positioned to capture a small portion of this TAM by focusing on technology, responsible lending practices and expansion of products.

Key Competitors

• ENVA
• ELVT
• LC

Competitive Landscape

OppFi competes in a crowded market. Key advantages include its technology platform and focus on responsible lending. Disadvantages include high interest rates and regulatory risk.

Historical Growth: OppFi has demonstrated growth by expanding its product offerings and partnerships. Historical growth rates vary depending on the specific period.

Future Projections: Future growth projections are subject to various factors and can be found in analyst reports and company presentations.

Recent Initiatives: Recent initiatives include expanding its credit card product and forming partnerships with banks to offer its lending platform to a wider audience.

OppFi provides financial solutions to an underserved market and uses technology to streamline lending. It has partnerships to grow but faces regulatory risks. OppFi must be careful with high interest rates and reputational impacts. While the TAM is large, increased competition may pose a problem to grow market share.

Data Sources:

• SEC Filings
• Company Website
• Analyst Reports
• Market Research Reports

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Market share data is estimated and may not be precise.