Oportun’s Set & Save platform has helped members save more than $13.2 billion since 2015 as the financial technology company uses machine learning to automate personalized savings decisions based on customers’ individual cash flows.
Set & Save allows members to connect their bank accounts to the platform, which analyzes transaction activity and forecasts future cash flows. The system then makes small, recurring savings decisions based on each member’s financial goals. Oportun said members using its savings product save an average of more than $1,800 annually.
The savings platform is part of a broader product ecosystem spanning unsecured personal loans, auto-secured personal loans, savings and partner-based lending. Oportun distributes its products through its mobile app and website as well as 125 retail locations and 459 Lending as a Service partner locations.
Oportun has also been expanding its partner network. Its Lending as a Service operation uses the company’s proprietary credit scoring and underwriting model with outside consumer brands, including a collaboration with Western Union. Oportun originates, underwrites and services loans generated through these programs.
The company recently established another bank partnership with Column National Association. Under the four-year agreement, Column can originate certain unsecured personal loans while Oportun provides services including marketing, application processing, fraud prevention, servicing and program administration.
Oportun’s Q2 loan originations increased 1.5% to $487.7 million from $480.8 million a year earlier. Portfolio yield increased to 33.3% from 32.8%, while the 30-day-plus delinquency rate improved to 4% from 4.4%. The annualized net charge-off rate was relatively stable at 12% compared with 11.9%.
The company’s longer-term lending footprint is substantial. Oportun said it has extended more than $22.7 billion of credit through more than 8.3 million lending products during its 21-year lending history.
