OppFi’s solution enables to improvement of credit history management
The OppFi’s solution improves access to credit for citizens. It targets the category of people whose FICO score is below 650. The fintech platform connects borrowers with community bank partners and financial institutions. This allows users to build a transparent credit history in an environment where traditional ways of borrowing are not available to them.
Solution relevance
OppFi director Todd Schwartz noted that there is a serious problem with access to credit. To get a home or car loan, borrowers need to have regular sources of income and savings accounts. At the same time, institutions are tightening the rules for getting credit. As a result, consumers are unable to apply for credit and resort to unfavourable and risky credit options.
The problem is particularly acute in the US:
– US$1.2 trillion in total credit card debt;
– about 60 million people have a low FICO score;
– 15 million people do not have bank accounts;
– 45 million people are unable to access a range of banking services due to insufficient credit scores.
As a result, a significant part of the population is cut off from the possibility of using traditional financial products. In such circumstances, people often have to use debit cards. This leads to an increased debt burden.
Platform features
OppFi’s platform helps consumers manage their finances wisely and control their accounts. The solution allows them to create credit profiles and adjust them according to their needs. In addition, the programme encourages users to close debts in a timely manner.
The company is also supporting other initiatives. One of these is the Zogo app. It focuses on improving financial literacy. Zogo users can earn rewards for improving their credit score.
OppFi’s fintech model is performing well in optimising personal loans. According to the company, net additions to the platform increased by 11% in the fourth quarter of 2024. At the same time, the number of net charge-offs fell significantly. Analysts forecast significant revenue growth in 2025.
The platform reduces volatility and automates the credit approval process. At the same time, the system does not penalise borrowers who repay their loans early.
OppFi benefits not only consumers but also local banks. They benefit from a two-pronged approach on the platform. Underwriting helps to improve the customers’ creditworthiness. It is based on account-level cash flow analysis.
The solution offers flexible customisation of the application, tailored to the needs of the user. Each client can choose convenient terms of partnership with different banks. The platform selects optimal results based on profiles to improve customers’ creditworthiness.
