The Fintech has Facilitated Over One Million Loans
The fintech company has facilitated more than one million loans to customers. Additionally, the fintech app business partners with banks rather than issuing loans directly.
As a result, OppFi can grow without a large balance sheet. In 2020, the business grew revenue to $291 million (up from $229 million in 2019). Unlike many other startup business models, OppFi has achieved profitability. The business had an adjusted net income of $53 million in 2020 (unchanged from 2019). In 2017, the startup business had $70 million in revenue and $11 million in adjusted net income. In dollar terms, OppFi facilitated loans are worth $2.3 billion. Furthermore, the company generates the majority — 80% — of loan applications through its mobile app. For over two years, the business more than doubled its customer base. At the end of 2018, the fintech business had 233,000 customers. By Q4 2020, the business had over 590,000 unique customers.
Business Model Focus on Underserved Customers
In terms of strategy, the fintech business focuses on serving customers with credit and financial difficulties. The business points out that 72% of consumers have been denied a line of credit, and 51% have been denied a personal loan in the past year. By connecting customers with more potential lenders on the platform, there is a greater chance of finding a match between a borrower and a lender.
About the Author
Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.