Oportun Financial Corporation · NASDAQ:OPRT
Oportun Financial — Merger or Acquisition (November 2021)
16 slides from Oportun Financial's merger presentation, Nov 16, 2021
Slide 1: Oportun's Acquisition of Digit
Oportun’s Acquisition of Digit November 16, 2021
Slide 2: Forward-looking statements
Forward-looking statements 2 This presentation contains forward-looking statements regarding Oportun’s (“Oportun,” “we” or “our”) future business expectations which involve risks and uncertainties, including the expected opportunities, terms, timing, completion and effects of the proposed acquisitio
Slide 3: Mission and Vision
3 Mission Vision Provide inclusive, affordable financial services that empower our customers to build a better future Be the leading A.I.-driven, digital-first platform helping hardworking individuals meet their borrowing, banking, savings, and investing needs
Slide 4: Digit nearly doubles customer base and is a platform for accelerating growth
4 Nearly doubles customer base and is a platform for accelerating growth • Founded in 2013; more than $7 billion saved on behalf of members • Average member historically incurs two less overdrafts per year • Members increase their net liquid savings ~50% after one year on Digit • Savings, investing,
Slide 5: Investment highlights
Accelerates revenue growth Diversifies revenue sources Positions us for future success Enhances product suite Expands our addressable market Investment highlights • Combined 1.4 million members1 and a platform for accelerating growth • Cross-selling opportunity to all applicants, as well as current
Slide 6: With Digit, we solve more problems facing U.S. consumers
6 With Digit, we solve more problems facing U.S. consumers Source: (1) FINRA Investor Education Foundation Study, February 2021; (2) Financial Health Network “U.S. Financial Health Pulse 2021 Trends Report”; (3) GoBankingRates Survey, December 2021; (4) Financial Health Network “FinHealth Spend Repo
Slide 7: Neobanking platform focused on financial health
7 Neobanking platform focused on financial health Provides simple, risk- adjusted investment options for longer-term goals through low-cost ETF portfolios “The bank account with a brain™” – intelligent and automated budgeting across bills, savings, and spending Detects risks of overdraft and automat
Slide 8: Automated Saving
8 Automated Saving A.I. designed to understand a user’s cash flows and save the right amount Source: (1) GoBankingRates Survey, December 2021 57% saved for members since 2015 $7B that helps members effortlessly save toward their goals A.I.-driven saving of U.S. consumers would struggle to come up wi
Slide 9: Overdraft Monitoring
9 Overdraft Monitoring for low checking account balances and transfers of savings back over ACH or real- time payments network Automated monitoring43% of the 178M financially vulnerable households in the U.S. with checking accounts overdrafted in the past year, with 9.6 overdrafts on average (1) in
Slide 10: Long-Term Investing
10 Long-Term Investing 57% $30M Automated allocation of savings into low-cost, risk- adjusted portfolios held in brokerage accounts or tax- advantaged IRAs of U.S. consumers are not confident about their long-term financial goals (1) of investments made by members since 2020 into long-term goals thr
Slide 11: Digital Banking
11 Digital Banking of U.S. consumers think that being financially healthy is important but 57% don’t want to think about money (1) 90% through intelligent bank accounts that provide members with safe spending recommendations Automated budgeting 660M algorithmic transfers over the last 5+ years provi
Slide 12: Most comprehensive set of financial products
12 Most comprehensive set of financial products Combines profitable lending platform with effortless savings, investing, and banking products Vision An A.I.-driven, digital-first platform delighting customers daily when they need to: Borrow Save Invest Bank Personal Loans Secured Personal Loans Cred
Slide 13: Designed to advance the everyday financial needs of hardworking people
Designed to advance the everyday financial needs of hardworking people Creating an unmatched neobanking platform Personal loans Lending-as-a-Service Credit cards Profitability Mobile banking Early direct deposit Personal financial management Overdraft monitoring Automated investing & brokerage Long-
Slide 14: Unparalleled financial health impact
14 Establishing Credit History 945,000+ people we have helped to start establishing a credit history Unparalleled financial health impact Source: Company data; (1) based on a study prepared for Oportun by the Financial Health Network (FHN) “True Cost of a Loan,” October 2021; (2) amount calculated a
Slide 15: Transaction details
15 Transaction details Expected close late Q4’21 or early Q1’22 Size $212.9M enterprise value • Total consideration, $114.4M cash and $98.5M equity, subject to customary closing adjustments Financing $116M committed • Cash consideration will be financed through an amortizing loan secured by Oportun'
Slide 16: Thank you
Thank you OP?*:RTUN digit
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