Zach Milam

Zach Milam, on behalf of David Scharf, inquired about Oportun Financial's macroeconomic outlook and the specific indicators that would prompt a loosening of their current tight credit posture.

Answer

Raul Vazquez, Chief Executive Officer, highlighted consumer resilience and expected larger tax refunds as positive signs, but noted concerns like lower Q4 GDP growth, declining wage growth for the lowest quartile, and rising fuel prices. He stated that Oportun maintains a conservative credit box and would look for stronger job growth, sustained GDP growth, a robust tax season finish, and a clear loss trajectory before considering credit loosening.

Zach Milam, on behalf of Citizens JMP, inquired about Oportun Financial's macro outlook, specifically asking for color on current economic conditions and potential indicators that might lead to a loosening of credit policies.

Answer

Raul Vazquez, Chief Executive Officer of Oportun Financial, highlighted consumer resilience and expected larger tax refunds as positive signs. He also noted cautious factors like lower Q4 GDP growth, lowest wage growth for the lowest quartile, and recent increases in fuel prices. Vazquez indicated that stronger job growth, continued GDP growth, a strong tax season finish, and a developing trajectory for losses would be required to open up the credit box.