Oportun Financial Corporation (Oportun) provides financial services in the United States.
The company designs its products to holistically address two of the most fundamental challenges to financial health and resilience—access to responsible and affordable credit, and adequate savings.
The company’s intelligent lending and savings platform is designed to help people, even those who are not well served by mainstream financial institutions, access credit and automate their savings without impac...
Oportun Financial Corporation (Oportun) provides financial services in the United States.
The company designs its products to holistically address two of the most fundamental challenges to financial health and resilience—access to responsible and affordable credit, and adequate savings.
The company’s intelligent lending and savings platform is designed to help people, even those who are not well served by mainstream financial institutions, access credit and automate their savings without impacting their ability to meet daily spending needs. By applying artificial intelligence (‘A.I.’) to automate financial health through adequate savings and credit when needed, the company can address the very real daily financial needs of millions of people living in the U.S.
The company’s financial products allow it to meet its members where they are and assist them with their overall financial health. Consumers can become members and access the company’s products through the Oportun Mobile App, the Oportun.com website, the telesales team, and through its retail locations. Collectively, these are the company’s primary channels for onboarding and serving members. Through these channels, the company helps potential members become aware of its product offerings, in addition to its brand marketing (including online and broadcast media, as well as outdoor advertising, including the presence of its 128 physical retail locations in some of the communities it serves) and direct marketing (including SMS/text, email, mail, and offers made available through the Oportun Mobile App).
Credit Products
The company has extended loans and credit cards and helped over 1.2 million people who came to Oportun without a FICO score to begin establishing a credit history. In addition, the study found that the company’s unsecured personal loan product has helped borrowers save more interest and fees.
Savings Product
The company’s Set & Save product has allowed its members to set aside more than $11.4 billion for rainy days and other purposes. Oportun uses algorithms that learn the financial habits of its members, such as when their paychecks are deposited and for how much, the timing and cost of their recurring monthly expenses like rent and digital subscriptions, along with all the other small and large payments and deposits that are not regularly recurring.
Through machine learning, the company develops a comprehensive and personalized profile of its members’ cash flow and quickly learns how much a member can afford to set aside each day without impacting their ongoing obligations and daily spending needs. For the company’s members, saving money becomes effortless, and their financial resiliency improves every day, as Oportun handles all the hard math, budgeting, and money transferring that present daily obstacles inhibiting many people from having adequate savings when they most need it.
Strategy
To continue developing more cross-buying opportunities between the company’s Set & Save savings product and its credit products, primarily through timely and relevant marketing to existing members via its mobile app. To efficiently invest in scaling the marketing capabilities for the company’s credit and savings products, primarily using A.I. The company leverages machine learning to rapidly build and test strategies across the member lifecycle, including through targeted digital marketing, underwriting, pricing, fraud and member servicing.
Products
Personal Loans
Personal loans allow the company’s members a fast and convenient way to address pressing financial needs (for example an unplanned car repair) as well as planned purchases and personal growth opportunities (such as a deposit on a home rental). The company’s competitive differentiation in personal loans comes from its segment focus, technology, data, A.I.-driven approach, and the way it tailors its product designs and borrowers’ experience to meet and exceed the expectations of its target members.
Unsecured Personal Loans— The company’s personal loan is a simple-to-understand, affordable, unsecured, fully amortizing installment loan with fixed payments throughout the life of the loan. The company charges fixed interest rates on its loans, which vary based on the amount disbursed, with a cap of 36% annual percentage rate (‘APR’) in all cases. As of December 31, 2024, for all active loans in the company’s portfolio and at the time of disbursement, the weighted average term and APR at origination was 40 months and 34.3%. The company’s loans do not have prepayment penalties or balloon payments, and range in size from $300 to $10,000 with terms of 12 to 54 months. As of December 31, 2024, the company originated unsecured personal loans in three states through state licenses and in 38 states through its partnership with Pathward, N.A.
Secured Personal Loans
In April 2020, the company launched a personal installment loan product secured by an automobile, which it refers to as secured personal loans. This product allows its members to access larger loan sizes than they can with an unsecured loan, which is critical if the financial need they are addressing exceeds the company's unsecured lending limits for that member. The company's secured personal loan business has significant growth potential as it expands geographic and channel availability and raises awareness of the product among its members.
The company’s competitive differentiation in secured personal loans comes from leveraging the member base, application flow, and business platform it has already built for unsecured personal loans. The company underwrites borrowers seeking a personal loan for both unsecured and secured loans, allowing them to choose the offer that fits best for them.
The company’s secured personal loans range in size from $2,525 to $18,500, with terms ranging from 24 to 64 months. The average loan size for secured personal loans originated in 2024 was $6,798. As of December 31, 2024, for all active loans in the company’s portfolio and at the time of disbursement, the weighted average term and APR at origination was 49 months and 31.5%, respectively. The company’s secured personal loans are offered in six states, and it is in the process of expanding into other states.
Set & Save
The company’s Set & Save product is designed to understand a member’s cash flows and save the right amount on a regular basis to effortlessly achieve savings goals. Since 2015, the company’s savings product has helped members save more than $11.4 billion and helped its members save an average of more than $1,800 annually.
Lending as a Service
The company’s first Lending as a Service strategic partner was DolEx Dollar Express, Inc., with an initial launch in December 2020. In 2021, the company launched another Lending as a Service partnership with Barri Financial Group in select locations, with both DolEx Dollar Express, Inc. and Barri Financial Group consolidated into a single company, ‘DolFinTech.’ The company recently re-launched its Lending as a Service program with a new streamlined Lead Generation program through which DolFinTech provides it with information for potential members, allowing the company to offer loans through its existing channels by phone, online, or in its retail locations.
In addition, the company recently announced a collaboration with Western Union, which will enable it to offer its Lending as a Service Lead Generation program to additional partners with a much faster lead-to-market time, expanding its membership base while providing a true Oportun service experience.
Seasonality
The company’s business is highly seasonal, and the fourth quarter is typically its strongest quarter in terms of loan originations. The company has historically experienced a seasonal decline in credit performance in the fourth quarter (year ended December 31, 2024), primarily attributable to the competing demand for its borrowers’ available cash flow around the holidays.
Regulations
The company is subject to examination, supervision and regulation by each state in which it is licensed and are regulated by the Consumer Financial Protection Bureau (the ‘CFPB’). Either directly or through the company’s bank partnership program requirements, it is subject to the USA PATRIOT Act, Office of Foreign Assets Control, Bank Secrecy Act, Anti-Money Laundering laws, and Know-Your-Customer requirements.
History
Oportun Financial Corporation was founded in 2005. The company was incorporated in 2011.
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