The digital lending platform touted these new offerings Wednesday (Oct. 28) as it released third-quarter earnings results showing a 3.8% drop in revenue. The company’s quarterly numbers also showed originations declining 7% to $229 million due to tighter screening.
“Higher-for-longer inflation and subdued consumer sentiment continue to affect our customer base, which tends to be disproportionately impacted relative to the broader population,” OppFi Chief Financial Officer Pam Johnson told analysts during the company’s earnings call.
Against this backdrop, borrowing habits are evolving, management said, leaving an opening for the company’s new credit product.
“There’s a subset of customers that prefer the flexibility, especially in this environment, over the more stringent nature of the installment product,” OppFi CEO Todd Schwartz said during the call.
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This “provides customers the ability to draw more frequently,” he said. “And we’re very encouraged by the testing, and now it’s fully launched so that we’re going to have that as a growth lever for next year.”
The new credit product lets users draw funds more frequently and comes ahead of the company’s planned rollout of an earned wage access offering for next year.
Management also touted a planned tech overhaul, part of a broader strategic investment of more than $150 million. OppFi has invested approximately $35 million to rebuild its entire operating and servicing infrastructure through its new Lola platform, which originates 100% of net new volume.
Meanwhile, OppFi’s acquisition of BNC Bank continues. Management was asked about the process during the question-and-answer session of the call, with one analyst saying the company had indicated during the prior quarter that the $130 million purchase would be nailed down before the end of the year.
“We’re continuing to respond to regulators promptly, qualitatively and quantitatively,” Schwartz said. “And we’re ready to continue to respond and work with them. We’re hopeful that we can get this resolved by Q4. If it does leak or bleed into Q1 of 2027, we’ll provide those updates when they come available.”
Earlier this month, U.S. Sens. Chris Van Hollen of Maryland and Elizabeth Warren of Massachusetts wrote to the company in opposition of the deal, arguing that OppFi’s business model is based on “predatory lending practices,” like triple-digit interest rates, PYMNTS reported.
OppFi has disputed the senators’ characterization of its lending business, saying that attacking the company’s banking plans harms consumers.
“Transitioning into the regulated banking system will subject OppFi’s already proven and fully compliant business model to rigorous federal oversight, reinforcing OppFi’s commitment to fair and responsible lending for those who need it most,” a spokesperson told Banking Dive Oct. 2.
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