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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

Upstart reported earnings yesterday, post-close. Below are my quick takeaways: ⤵⤵⤵ ➡ Transaction volume (originations from Bank Partners) of $1,109.7Mn, a (5.6)% decline YoY and (1.9)% decline QoQ ➡ ➡ Conversion rate of 15%, up from 9% a year prior and 14% a quarter prior ➡ ➡ Auto Secured of $18Mn, down (68)% YoY but up 35% QoQ ➡ ➡ HELOC of $8Mn, from $7Mn a quarter prior (YoY N/A due to recent rollout) ➡ Transaction volume, number of loans – 143,900 for the quarter, a 31.5% increase YoY and 20.5% increase QoQ ➡ Contribution margin of 58%, down from 67% a year prior and from 59% a quarter prior ➡ ➡ Above guidance of 56% for Q2 ➡ ➡ Guidance of 57% for Q3 ➡ Total whole loans held on balance sheet of $686Mn, an (18.1)% decline YoY and (25.8)% decline QoQ ➡ ➡ In-line with its stated strategy to have no personal loans on balance sheet besides for R&D and/or a risk-sharing agreement with a long-term partner ➡ ➡ $396Mn were held for R&D (74% of these were auto loans) ➡ ➡ At the same time, total loans held on balance sheet of $821Mn declined (2.0)% YoY and (24.1)% QoQ ➡ ➡ ➡ $135Mn from consolidated (securitized loans) down from $157Mn the quarter prior ➡ ➡ ➡ “In Q3’23, we completed an asset-backed securitization and retained the full residual equity, which required us to consolidate the securitization. The net retained value of the securitization is approx. $21M as of June 30, 2024.” ➡ Capital co-invested rose to $236Mn, from $40Mn a year prior and $161Mn a quarter prior ➡ ➡ Investments linked to credit performance as part of their committed capital arrangements and other co-investments ➡ ➡ Current assessed value of $225Mn, from $52Mn a year prior and $147Mn a quarter prior ➡ ➡ Minimum/maximum possible value of $0-492Mn, from $0-83Mn a year prior and $0-324Mn a quarter prior ➡ HELOC product now live in 30 states plus DC, up from 19 a quarter prior ➡ Dave Girouard, CEO, “We've implemented new channels for reaching borrowers who are delinquent. These efforts and more have helped drive delinquency rates down by 16% year over year and have helped reduce support costs per current loan by 30%.” ➡ Sanjay Datta, CFO, “Average loan size of $7,700 was down from $9,500 in the prior quarter, driven lower by continuing robust growth in small dollar loans as well as by pressure from higher pricing on prime loans, which tend to run larger than average.” 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