Everyday Credit FinTech OppFi Will Go Public Via SPAC

FinTech platform Opportunity Financial (OppFi) has entered into an agreement with special purpose acquisition company (SPAC) FG New American Acquisition Corp. (FGNA) to become a public company, according to a press release.

OppFi provides financial products, including loans, to consumers who have trouble getting them from traditional providers, the release stated. The OppFi platform will aim to expand access to these products and is working with artificial intelligence (AI)-related financial services that are scalable and mobile.

FGNA Chairman Joe Moglia said in the release that his team has “been highly impressed by the significant growth the OppFi team has achieved through their innovative platform and the proven ability to scale, all while faithfully serving their customers.”

OppFi has facilitated over 1.5 million loans in the last nine years, and Founder and Executive Chairman Todd Schwartz said the company’s goal is to “help customers access a better financial path with the superior experience they deserve,” according to the release

“This is an exciting stage in the company’s evolution, which we believe will enable us to further expand our mission and be the financial destination for the tens of millions of everyday consumers that need access more than ever,” he said in the release.

OppFi CEO Jared Kaplan said in the release that the company is “at the forefront of a high growth digital financial services revolution.”

“We’re tremendously proud of the team that has made our progress possible through a commitment to serving consumers excluded from the traditional system through fair, transparent products and an extraordinary customer experience,” he said in the release. “We see a solid opportunity ahead for OppFi to be the financial champion for the nearly 60 million everyday consumers in the U.S. as we continue to innovate our array of products, technology and capabilities in the years ahead.”

Late in 2020, PYMNTS reported that in spite of the increasing popularity of SPACs, roadblocks could be ahead. SPACs make up around 20 percent of the initial public offering (IPO) market, and it could become harder to find good targets for them — without which the SPACs have to return their funding.