Joe Jakunis's questions to Pathward Financial Inc (CASH) leadership • Q2 2025
Question
Joe Jakunis asked about any observed changes in consumer payment behavior and requested more details on the new partnership for originating loans through a lending marketplace.
Answer
CEO Brett Pharr responded that the company has not seen any measurable change in consumer spending behavior, as their customer base primarily uses funds for non-discretionary items like gas and groceries. Regarding the new partnership, he described it as a typical arrangement for originating online consumer term loans to near-prime/sub-prime borrowers, emphasizing that it utilizes a waterfall credit loss structure and rigorous underwriting models similar to their other long-standing partnerships.