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TransUnion just released its monthly credit snapshot for July, below for my breakdown (with a focus on bankcard and unsecured credit): ⤵⤵⤵   ➡ In July, 60+ DPDs declined (MoM) for Unsecured Personal Loans ("UPLs") (4)bps, but rose for Auto +9bps, Bankcard +5bps and Mortgage +3bps. This marks the 5th straight month of 60+ DPD declines for UPLs   ➡ Looking at bankcard, 90+ DPDs increased +2bps MoM, breaking a 4-month streak of declines, and 30+ DPDs rose +9bps MoM, for a 2nd straight month. Q3 2023 vintage DPDs continue to track higher than Q3 2022 and well above Q3 2018-2021 vintages (see image) ➡ Avg bankcard balances rose +1.1% MoM, to $6,291   ➡ Turning to originations, we got information on UPL origination volume for the Apr 2024 – May 2024 period (lag due to reporting time)   ➡ May fintech UPL originations rose for super prime +3.7%, prime +1.8%, near prime +16.0% and subprime +4.0%, while prime plus declined (2.3)%, on a MoM basis. Super prime originations rose +107.9% YoY and prime plus +18.5% while all other risk tiers remained below May 2023 levels, with prime (5.9)%, near prime (24.2)%, and subprime (46.8)%   ➡ Credit union originations eased slightly MoM for super prime (0.6)%, prime plus (2.9)%, and prime (2.3)%, while near prime +13.7% and subprime +15.1%. On a YoY basis, super prime +3.1% was above 2023 levels, while all others were below - prime plus (9.0)%, prime (8.6)%, near prime (11.7)% and subprime (9.9)%   ➡ Finance companies MoM UPL originations declined for super prime (2.6)%, but rose for all other risk tiers: prime plus +4.9%, prime +6.6%, near prime +9.2% and subprime +17.2%. On a YoY basis, originations were up across the board, with super prime +38.0%, prime plus +21.4%, prime +34.2%, near prime +26.8% and subprime +13.5% all above 2023 levels   ➡ Banks reported MoM declines for super prime (1.6)%, and prime (4.1)%, while reporting MoM increases for prime plus +1.3%, near prime +2.7%, and subprime +9.8%. Bank originations were lower than May 2023 levels for super prime (27.4)%, prime plus (28.9)%, prime (34.7)%, and near prime (20.1)%. Subprime +1.7% was the only tier above 2023 levels   ➡ In Jun, finance companies maintained their lead in UPL balances, with 29.0% of the total, compared to 28.2% for fintechs, 22.3% for banks and 20.6% for credit unions   ➡ In July, average UPL balances per consumer fell (0.7)% on a MoM basis, to $11,782 (Initial takeaways in comments ⤵⤵⤵) Thanks again to Dan Simmons and the TransUnion team for the great data! If you found value in this post, please like 👍 and share for visibility For more fintech and consumer lending coverage: ➡ Follow/connect with me here, join my discord server (link in bio), and subscribe to the Cross River IQ (fka PeerIQ by Cross River) newsletter #consumerlending #consumercredit #fintech

Good morning, catch up on this week's Cross River IQ (fka PeerIQ by Cross River) newsletter. Here are the highlights: ⤵⤵⤵ ➡ Inflation eased ➡ A September rate cut may be on the table ➡ Capitalize and Setpoint announce their Series B rounds ➡ Green Dot Corporation extends Apple deal ➡ Tally shuts down ➡ Techstars lays off 17% ➡ Apple opens up NFC access Link to this week's edition in comments: ⤵⤵⤵ #consumerlending #fintech #baas

MPL new issue volume from Finsight Group Inc (FINSIGHT), to be featured in my upcoming Q2 Consumer Lending Review: ⤵⤵⤵ ➡ 2Q24 new issue volume was +29.5% higher on a YoY basis but (2.4)% lower on a QoQ basis ➡ ➡ The YoY increase in new issue volume was driven by an increase both in deals (10 vs. 8) and average deal size ($437Mn vs. $422Mn)   ➡ Affirm - $1,385Mn, OneMain Financial - $1,100Mn, Pagaya - $693Mn, Best Egg (Marlette) - $321Mn, Service Experts - $269Mn, Enova International - $217Mn, Stream Innovations - $195Mn, and Regional Management - $187Mn were among the most active players in the space in the second quarter   ➡ Through almost half of the third quarter, new issue volume of $3,097Mn is on track to eclipse 3Q23’s $5,289Mn of new issue volume. Through almost half of the third quarter, there have been 7 deals closed (compared to 11 total in 3Q23) at an average deal size of $442Mn (compared to $481Mn in 3Q23) Follow/connect with me here and subscribe to the Cross River IQ (fka PeerIQ by Cross River) newsletter to receive my upcoming Q2 Consumer Lending Review, link in comments: ⤵⤵⤵ #consumerlending #fintech #abs

Good morning, catch up on this week's Cross River IQ (fka PeerIQ by Cross River) newsletter. Here are the highlights: ⤵⤵⤵ ➡ Traders hope for emergency rate cut ➡ HELOC use grows ➡ Dems introduce bill to expand EFTA protections ➡ Bilt Rewards, Savvy Wealth, iLex, and Octane® announced fresh funding ➡ Pagaya partners with OneMain Financial ➡ Payoneer acquires global payroll startup ➡ Fintechs report earnings Link to this week's edition in comments: ⤵⤵⤵ #consumerlending #fintech #baas

Pagaya reported earnings this morning. Below are my quick takeaways: ⤵⤵⤵ ➡ Network volume of $2,331Mn, a 19.1% increase YoY but (3.6)% decline QoQ ➡ ➡ Growth was driven by personal loan (made up ~60% of total volume), single-family rental and POS businesses ➡ ➡ 3Q24 outlook for $2.3-$2.5Bn of network volume ➡ Average conversion rate of applications was 0.8% for loans issued in 2Q24 from 0.9% a quarter prior ➡ ➡ $193Bn in application volume from lending partners, below $198Bn a year prior but up from $180Bn a quarter prior ➡ Fee revenue less production costs as a % of network volume (“FRLPC %”) of 4.2%, up from 3.3% a year prior and 3.8% a quarter prior ➡ ➡ Above target of 3-4% FRLPC% ➡ ➡ Increasing target to 3.5%-4.5% FRLPC% in 2H24 ➡ ➡ Personal loan FRLPC margin of 6.2%, up 196bps YoY and 16bps QoQ ➡ ➡ An increasing share of FRLPC % coming from its lending partner product (net AI integration fees) than from its investor product (capital markets execution + contract fees) - 69% from lending partner product vs. 31% from investor product ➡ In Q2, secured an additional $825Mn in funding across 3 ABS deals ➡ 120 ABS investors, up from 81 in 2Q23 and 116 in 1Q24 ➡ Signed 12-month forward flow agreement with Castlelake for $1Bn ➡ Achieved AAA rating on its recent $550Mn personal loan deal (first AAA rating for its personal loan ABS program, upsized from initial target size of $400Mn) ➡ Elavon, Inc. partnership on track to go-live in Q4, will focus on larger ticket size and longer duration installment loans ➡ Added enterprise relationship with OneMain Financial across auto and personal loans ➡ Expanded partnership with LendingClub to its personal loan product ➡ Announced upcoming acquisition of Theorem which will create a combined credit fund platform exceeding $3Bn in AUM Gal Krubiner, CEO, “With the progress we are making on increasing profitability and getting efficient with our balance sheet, incremental volume growth is now making a positive contribution to the total cash flow. With this very important step achieved, I'm now more confident than ever that very shortly, we can self-fund future growth.” Sanjiv Das, President, “Personal loans 30-day plus delinquencies in our second half of 2023 vintages are down 40% to 50% versus peak levels in 2021. The positive trend is accelerating with delinquencies for early 2024 vintages down nearly 60% from 2021 peak levels.” Evangelos Perros, CFO, “Our new $1 billion forward flow agreement is expected to fund over 15% of our annual personal loan volumes.” Initial takeaways in comments: ⤵⤵⤵ If you found value in this post, please like 👍 and share for visibility Looking for more fintech and consumer lending coverage? ➡ Follow/connect with me here for earnings updates, join my Discord server (for the full breakdown + archives), and remember to subscribe to the Cross River IQ (fka PeerIQ by Cross River) weekly newsletter #consumerlending #fintech #earnings

Oportun reported earnings yesterday, post-close. Below are my quick takeaways: ⤵⤵⤵ ➡ Aggregate originations of $434.8M, a (10.4)% decline YoY but 28.6% increase QoQ (seasonality) ➡ ➡ Decrease primarily due to credit-tightening actions (tightened further in 4Q23) ➡ Managed principal balance of $2,997.8M, a decline of (7.9)% YoY, and (1.0)% QoQ ➡ Portfolio yield of 33.9%, up from 32.2% a year prior and 32.5% a quarter prior ➡ CAC of $122, down from $163 a year prior and $138 a quarter prior ➡ $245Mn warehouse facility executed after quarter-end ➡ Announced new lending-as-a-service collaboration with Western Union ➡ ➡ Represents a significant lead generation opportunity ➡ Signed letter of intent to sell its credit card portfolio ➡ ➡ Selling portfolio for 70% of outstanding receivables balance, either current or up to 29 days delinquent                                        Credit Metrics ➡ Annualized NCO rate of 12.3%, compared to 12.5% a year prior and 12.0% a quarter prior ➡ ➡ Within Q2 guidance of 12.4% +/- 15 bps ➡ ➡ Q3 guidance of 12.3% +/- 15 bps ➡ ➡ Pre-July 2022 credit tightening made up 11% of owned principal balance outstanding, down from 21% in 2023 ➡ ➡ ➡ Made up 28% of 1Q24 gross charge-offs ➡ ➡ ➡ Expected to be 3% by YE24 ➡ ➡ Front book (post-July 2022) annualized NCO rate of 10.6% vs. 21.2% back book (pre-July 2022) ➡ 30+ Day Delinquency rate of 5.0%, compared to 5.3% a year prior and 5.2% a quarter prior ➡ Raul Vazquez, CEO, on Oportun's lending collaboration with Western Union ➡ “Structured like our other Lending-as-a-Service agreements, it only requires us to pay for leads when a loan that has met our underwriting criteria has been funded. This is a significant opportunity to add new applicants to our originations funnel and generate incremental new loan volume under our current credit standards.” ➡ Jonathan Coblentz, CFO, “In the second quarter, our sales and marketing expenses were just over $16 million, down 15% year-over-year, and I'm pleased to share that our CAC of $122 was a new low for us as a public company, down 25% year-over-year driven by our cost discipline.”   ➡ “As of the end of July, 30-plus delinquencies remain below 2023 levels.” Initial takeaways in comments: ⤵⤵⤵ If you found value in this post, please like 👍 and share for visibility Looking for more fintech and consumer lending coverage? ➡ Follow/connect with me here for earnings updates, join my Discord server (for the full breakdown + archives), and remember to subscribe to the Cross River IQ (fka PeerIQ by Cross River) weekly newsletter #consumerlending #fintech #earnings

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Your Daily FinTech news together with PayQuicker My top 9 FinTech News Updates you don't want to miss today: Did I miss an update? Drop it in the comments👇 1️⃣- Klarna Considers Secondary Sale to Boost IPO Prospects 2️⃣- Unlimit and Yuno join forces to enhance payments for businesses worldwide. 3️⃣- NY-based FinTech Payoneer has acquired Singapore’s startup Skuad for $61M. 4️⃣- Apple Pay has officially launched in the Dominican Republic. 5️⃣- Fastlane by PayPal enables a faster, simpler guest checkout experience. 6️⃣- Philippine FinTech GCash still eyeing IPO after MUFG investment. 7️⃣- Bitstamp announces a partnership with Stripe to support Stripe's fiat-to-crypto onramp in EU. 8️⃣- Stripe launches No-Code Adaptive Pricing for businesses globally. 9️⃣- Ziina زينة becomes first venture-backed startup to secure UAE Central Bank SVF license. Read the complete newsletter for more news updates, insights and the best #fintechreport below👇 This newsletter also includes: Cole Gottlieb, MoneyLion, Orenda Finance, Tribe Payments, Remitly, Vikas Mehta, Mondu, De Nederlandsche Bank, Flexys, Moneyhub, Nacha, Kapital Bank, Tonik, Transak, Octane®, Torpago, Chris Boncimino, Flywire, Invoiced, Greenlight, and more! Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] #fintech #fintechindustry #financialtechnology #payments #paytech #digitalpayments #openbanking #blockchain #bankingtech #digitalbanking #neobank #challengerbank #digitalbank #openfinance #fintechnews 

OppFi reported earnings this morning. Below are my quick takeaways: ⤵⤵⤵ ➡ Total net originations of $205.5Mn, a 2.4% increase YoY and a 25.7% increase QoQ ➡ ➡ YoY increase due to “bank partners expanding into additional states, as well as enhanced lead evaluation capabilities driving higher quality applications” ➡ Total retained net originations of $189.3Mn, a (3.1)% decline YoY but 24.2% increase QoQ ➡ ➡ YoY decline “attributed to one of our bank partners retaining a higher percentage of loans originated in certain states” ➡ Ending receivables of $387.1Mn, a (2.7)% decline YoY, but 4.2% increase QoQ ➡ NCOs as a % of total revenue of 33%, down from 36% a year prior and from 48% a quarter prior ➡ ➡ NCO rate typically lowest in Q2, Q3 while highest in Q1, Q4 ➡ NCOs as % of average receivables of 44%, down from 47% a year prior and 62% a quarter prior ➡ Auto-approval rate up to 76%, from 72% a year prior and 73% a quarter prior ➡ Average yield up to 135% from 129% a year prior and 130% a quarter prior ➡ ➡ Yield increased “due to the decrease in delinquent loans in the portfolio that were not accruing interest as well as an increase in the average statutory rate from a relative shift away from states with lower interest rates” ➡ Recently acquired equity interest in Bitty Advance, a credit access company that offers revenue-based financing and other working capital solutions, to enter the small business financing market ➡ ➡ Acquired 35% equity interest in Bitty, with the option to acquire an additional 30% in 2027 and acquire the remaining for total ownership in 2030 ➡ Todd Schwartz, CEO, “Our key highlights for the quarter compared to the prior year are a solid 6 percentage point increase in revenue yield to 134.8%, a substantial 30% increase in recoveries, a 3.7 percentage point improvement in the annualized net charge-off rate, as a percentage of total revenue to 32.5%, a 90-basis point improvement in total expenses as a percentage of total revenue to 45%.”   ➡ Pamela Johnson, CFO, “Total retained net originations decreased 3.1% to $189.3 million since one of our bank partners now retains a larger portion of loans originated in some states. From a mix perspective, 55.6% of originations were to existing customers and 44.4% were to new customers.” Initial takeaways in comments: ⤵⤵⤵ If you found value in this post, please like 👍 and share for visibility Looking for more fintech and consumer lending coverage? ➡ Follow/connect with me here for earnings updates, join my Discord server (for the full breakdown + archives), and remember to subscribe to the Cross River IQ (fka PeerIQ by Cross River) weekly newsletter #consumerlending #fintech #earnings