New Study Demonstrates that Oportun Products are on Average Eight Times Less Expensive Than Other Alternatives

Rhea-AI Summary

Oportun (Nasdaq: OPRT) announced findings from the True Cost of a Loan Study by the Financial Health Network, revealing that its loan products are significantly more affordable than alternatives. The analysis compared its unsecured installment loans of $500, $1,500, and $3,000 to other products typically accessed by subprime borrowers. Results showed Oportun loans are eight times less expensive on average. Specifically, for a $500 loan, alternatives could cost ten times more; for $1,500, six times; and for $3,000, four times more. Since inception, Oportun has provided over $15.5 billion in loans, saving members more than $2.3 billion in interest and fees.

Positive

• Oportun loans are on average eight times less expensive than competitor loans for subprime borrowers.
• Members saved over $2.3 billion in interest and fees since inception.
• Oportun has helped over 1 million individuals establish a credit history.

Negative

• None.

SAN CARLOS, Calif., April 03, 2023 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech and digital banking platform, today released findings from the latest True Cost of a Loan Study conducted by the Financial Health Network (FHN). The new study found that Oportun’s loan products on average are eight times less expensive than other alternatives for a typical borrower.

The 2022 analysis compares Oportun unsecured installment loans of $500, $1,500, and $3,000 to alternative products for Oportun borrowers based on the most likely options that a hypothetical subprime borrower might access.

FHN’s analysis found that across the three loan amounts, alternative products could cost eight times more on average than an Oportun loan of equal amount.

• For a $500 loan, alternative products could cost ten times more on average than an Oportun loan.
• For a $1,500 loan, alternative products could cost six times more on average than an Oportun loan.
• For a $3,000 loan, alternative products could cost four times more on average than an Oportun loan.
  

“Providing affordable and inclusive loan products that help our members integrate into the financial mainstream by establishing a FICO® score is an important part of our mission to put their financial goals within reach and help them build a better financial future,” said Matt Jenkins, Chief Operations Officer for Oportun. “The True Cost of a Loan study clearly demonstrates that Oportun is an affordable alternative for hardworking people who would otherwise be denied by other lenders or would have to pay a much higher cost for a similar loan product.”

Since inception, Oportun has extended more than $15.5 billion in responsible and affordable loans, primarily in low- and moderate-income communities, saved its members more than $2.3 billion in interest and fees, and helped its neobanking members save an average of more than $1,800 annually. In addition, Oportun’s credit-building lending products have helped more than 1 million people to begin establishing a credit history.

About Oportun 
Oportun (Nasdaq: OPRT) is a digital banking platform that puts its 1.9 million members' financial goals within reach. With intelligent borrowing, savings, budgeting, and spending capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $15.5 billion in responsible and affordable credit, saved its members more than $2.3 billion in interest and fees, and helped our members save an average of more than $1,800 annually. For more information, visit Oportun.com.

Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Usher Lieberman
(650) 769-9414
usher.lieberman@oportun.com

FAQ

What did the True Cost of a Loan Study find about Oportun (OPRT)?

The study found that Oportun’s loan products are on average eight times less expensive than other alternatives for a typical borrower.

How much has Oportun (OPRT) saved its members since inception?

Oportun has saved its members more than $2.3 billion in interest and fees since its inception.

How many people has Oportun (OPRT) helped establish credit history?

Oportun has helped over 1 million individuals begin to establish a credit history.

What are the average savings for Oportun (OPRT) borrowers compared to other lenders?

For a $500 loan, alternatives could cost ten times more; for $1,500, six times; and for $3,000, four times more than Oportun loans.