OppFi (OPFI) Sidoti Micro-Cap Virtual Conference summary

Mission and business model

• Operates as a tech-enabled, mission-driven specialty finance platform focused on expanding credit access for underserved Americans, particularly those with subprime credit.

• Facilitates loan originations and servicing for community banks, enabling them to reach credit-challenged customers.

• Founder-led with a strong entrepreneurial background and majority ownership, emphasizing long-term commitment and vision.

• Profitable across business cycles, with nine consecutive years of positive net income.

• Utilizes automation, with 89% of 2023 applications processed without human intervention.

Customer focus and product offerings

• Serves over 60 million credit-marginalized Americans, many living paycheck to paycheck and struggling to access traditional credit.

• Core product is a simple interest amortizing installment loan with no fees, branded as OppLoans.

• Offers financial education and wellness tools through partnerships with Zogo, Experian Boost, and SpringFour.

• Provides programs to refer applicants to more suitable products or alternative solutions if declined.

• High customer satisfaction, with strong ratings on Trustpilot, Google, BBB, and a 77 NPS.

Bank partnerships and credit model

• Partners with three FDIC-member Utah-chartered banks to originate loans, expanding reach to 40 states.

• OppFi services loans, manages payment processing, and purchases economic rights in loans via asset-backed facilities.

• Employs a dynamic risk underwriting model using cash flow and behavioral data, adapting to macroeconomic trends.