Oportun Financial Corp (NASDAQ: OPRT)

Oportun Financial Corp, also known by its stock symbol OPRT, operates in the financial services industry. The company's main business activities involve providing intelligent borrowing, savings, and budgeting capabilities to its members, with a focus on addressing two fundamental challenges to financial health and resilience: access to responsible and affordable credit, and adequate savings. Oportun's operations span across 44 states, with a particular emphasis on serving underserved borrowers who may not have access to mainstream credit.

The company generates the majority of its revenue through its credit products, which include unsecured personal loans and secured personal loans. These loans are designed to be affordable and responsible, with fixed interest rates and no prepayment penalties or balloon payments. The unsecured personal loans offered by Oportun range in size from $300 to $10,000, with terms of 12 to 54 months. In 2023, the average loan size was $4,007, with a weighted average term and APR at origination of 41 months and 32.9%, respectively. Secured personal loans, which are secured by an automobile, range in size from $2,525 to $18,500, with terms ranging from 24 to 64 months.

In addition to its credit products, Oportun offers a savings product called Set & Save. This innovative solution uses machine learning to analyze a member's transaction activity and build forecasts of their future cash flows, enabling small, frequent savings decisions. Since its inception in 2015, Set & Save has helped members save more than $10.2 billion.

Oportun's competitive advantages stem from its technology, responsible construction of its products, A.I.-enabled digital platform, and superior member value proposition. The company's products are designed to be affordable and responsible, making them a more attractive option for borrowers compared to traditional banks. Oportun's A.I.-enabled digital platform allows for quick and efficient underwriting of loans and savings decisions, making it a more efficient and effective lender.

Oportun competes with other consumer finance companies, credit card issuers, financial technology companies, and financial institutions. Despite being a relatively small player compared to traditional banks and financial institutions, Oportun has a strong track record of serving underserved borrowers and has established a reputation for providing responsible and affordable credit products.

Oportun's customers are primarily individuals who may not have access to mainstream credit, including those with limited credit history or low credit scores. The company's products are designed to be accessible and affordable for these individuals, with fixed interest rates and no prepayment penalties or balloon payments.

In terms of its product offerings, Oportun provides a range of credit products and the savings product Set & Save. The company's credit products, both unsecured and secured personal loans, are designed to be affordable and responsible, with fixed interest rates and no prepayment penalties or balloon payments. The savings product, Set & Save, uses machine learning to help members save money by making small, frequent savings decisions based on their transaction activity.