What changed in this filing

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Item 1. Business

2023-03-14 compared with 2022-03-01 · 81 added, 98 removed, 195 unchanged (48% of the section changed)

Company Overview

We are a financial technology company and digital banking platform driven by our mission to provide inclusive, affordable financial services that empower our members to build a better future.

By intentionally designing our products to help solve the financial health challenges facing a majority of people in the U.S., we are focused on realizing our vision to deliver a complete set of financial solutions that meet the needs of hardworking people, from borrowing and saving to banking, investing and more.

We believe our business is well positioned for significant growth and the expansion of our track-record of profitability.

We are a digital banking platform that puts our members’ financial goals within reach.

With intelligent borrowing, savings, budgeting, and spending capabilities, we empower members with the confidence to build a better financial future.

By intentionally designing our products to help solve the financial health challenges facing a majority of people in the U.S., we believe our business is well positioned for long-term growth.

Financial Health in America

According to a January 2023 survey by Bankrate, more than half of all Americans do not have enough savings to cover an unplanned expense of $1,000.

In 2021, the Financial Health Network reported that two-thirds of U.S.

households struggle with spending, saving, borrowing and planning.

In 2022, the Financial Health Network ("FHN") reported that more than two-thirds of U.S.

households "struggle with spending, saving, borrowing and planning" according to its Financial Health Pulse™ 2022 U.S.

Trends Report.

In addition, our research shows that while 90% of U.S.

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Our digital banking platform is designed to address these societal issues with a comprehensive set of financial services that help people, even those who are not well served by mainstream financial institutions, access credit and automatically budget, save, and invest, without impacting their ability to meet daily spending needs.

By applying artificial intelligence ("A.I").

to automate their financial health, we believe we have a compelling suite of products and services that addresses the very real needs of the vast majority of people living in the U.S.

By applying artificial intelligence ("A.I.") to automate their financial health, we believe we have a compelling suite of products and services that addresses the very real needs of the vast majority of people living in the U.S.

Serving our Members' Financial Needs

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We take a holistic approach to serving our members and view it as our purpose to responsibly meet their current capital needs, help grow our members’ financial profiles, increase their financial awareness and put them on a path to a financially healthy life.

We believe our strong Net Promoter® Score ("NPS") score, 79 for our personal loans and 70 for our digital banking products, demonstrates our success in providing our members with effective and easy to use solutions.

Our members access our products primarily through our website, the Digit mobile application, as well as through our Lending as a Service partners.

Credit Products— Since our founding in 2005, we have extended more than $12.0 billion in responsible credit through more than 4.9 million loans and credit cards, and helping nearly 1.0 million people who came to Oportun without a FICO® score to begin establishing a credit history .

According to a study commissioned by us on the credit options available to people with little or no credit history, the Financial Health Network found that Oportun loans are, on average, six times less expensive than other options and up to 25 times less expensive as compared to online-only installment products.

We believe our strong Net Promoter® Score ("NPS"), 81, up from 79 in 2021 for our personal loans demonstrates our success in providing our members with effective and easy to use solutions.

Our members access our products primarily through our website, our mobile application, as well as through our partners.

Credit Products— Since our founding in 2005, we have extended more than $15.5 billion in responsible credit through more than 6.3 million loans and credit cards, and helping over 1.1 million people who came to Oportun without a FICO® score to begin establishing a credit history .

According to a study commissioned by us on the credit options available to people with little or no credit history, the Financial Health Network found that Oportun loans are, on average, 6 times less expensive than other options and up to 24 times less expensive as compared to online-only installment products.

In addition, the study found that our unsecured personal loan product has helped borrowers save more than $2.3 billion in interest and fees.

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to make financial health effortless for everyone.

Following the success of the initial savings product, Digit has now expanded its products and services to include bank account and investment products, available through partners.

Since 2015, Digit members have saved over $7.2 billion towards their rainy day fund and other savings goals and paid down more than $ $330.0 million in debt.

Manag ement 's Discussion and Analysis of Financial Condition and Results of Operations and Note 6 , Acqu isition , in the accompanying Notes to the Consolidated Financial Statements for further discussion of the Digit acquisition.

Following the success of the initial savings product, Digit expanded its products and services to include bank account and investment products, available through partners.

Since 2015, our members have saved over $8.9 billion towards their rainy day fund and other savings goals.

Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 6, Acquisition , in the accompanying Notes to the Consolidated Financial Statements for further discussion of the Digit acquisition.

Lending as a Service— In addition to reaching members through direct marketing channels, we leverage our proprietary credit scoring and underwriting model to enable us to serve consumers by partnering with other brands.

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In this partnership, DolEx markets loans and enters borrower applications into Oportun’s system, and Oportun underwrites, originates and services the loans.

In July 2021, we signed our second Lending as a Service partner, Barri Financial Group, which we launched in several locations in October 2021.

In January of 2022, we announced a partnership with Sezzle, a leading provider of Buy Now Pay Later (“BNPL”) financing options.

When deployed, Oportun's responsible lending product will be available as a checkout option, through Sezzle, for larger purchases, which we believe will allow us to reach more new members.

In October 2021, we launched another Lending as a Service partnership with Barri Financial Group in select locations.

In January of 2022, we announced our first all-digital Lending as a Service partnership with Sezzle, a leading provider of Buy Now Pay Later ("BNPL") financing options which launched in the first quarter of 2023.

Oportun is now available as a checkout option, through Sezzle, for larger purchases which we believe will allow us to reach more new members.

We believe we will be able to offer Lending as a Service to additional partners, and expand our membership base.

Providing our Members with a Seamless Experience

We recently launched a mobile application that integrates our credit and digital banking products into a seamless user experience (“Oportun Mobile App”) that further positions us as a leading fintech with one of the most comprehensive offerings.

We believe that by offering our members an integrated experience through the Oportun Mobile App, we can boost member engagement and retention, as well as multi-product adoption.

Our Digital Banking Platform

Consistent with our mission of financial inclusion, we have designed our digital banking platform to provide integrated products and services that are financially responsible and lower cost compared to market alternatives.

Consistent with our mission of financial inclusion, we have designed our integrated digital banking platform to provide products and services

that are financially responsible and lower cost compared to market alternatives.

Our application of A.I., specifically machine learning, is designed to address the shortcomings of the modern banking system.

Since our inception, we have utilized alternative data sets to rapidly build, test and develop our underwriting, pricing, marketing, fraud and servicing models, and with the acquisition of Digit, we now offer machine learning capabilities that help members identify the right amount of money to put towards savings and investments each day.

We believe this gives us a strong competitive

advantage and an unparalleled suite of digital banking products, which allow us to offer a lower cost option to millions of people in the U.S.

We believe this gives us a strong competitive advantage and an unparalleled suite of digital banking products, which allow us to offer a lower cost option to millions of people in the U.S.

Through the development and utilization of our sophisticated underwriting models, we are able to assess credit risk more effectively compared to other companies and traditional scoring models.

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We employ continuous learning to update these models with the most recent financial data, so we do not miss new trends in spending habits or income changes (e.g., new employers, subscription services, insurers, side jobs, sales, etc.).

With more than 660 million algorithmic transfers over the last 5+ years based on billions of data points, Digit has built an A.I.

engine with a long track record of making financial health effortless for members.

With 814 million algorithmic transfers over the last 8+ years based on billions of data points, we have built an A.I.

engine with a long track record of making financial health effortless for our members.

This serves as a major competitive advantage in delivering new types of personalized but scalable financial services.

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We seek to expand our financial services to help a growing number of responsible, hardworking members to borrow, save, bank and invest through our digital banking platform and thus make financial health effortless for them.

Our specific objectives are to (1) grow our members, both by organic acquisition and by extending the lifetime of our existing member relationships, (2) increase the number of products that our members use and drive higher engagement of multi-product relationships, and (3) enhance our platform capabilities across all core functions to better serve our members.

Our specific objectives are to (1) grow our members, including by organic acquisition, (2) increase the number of products that our members use and drive higher engagement of multi-product relationships, and (3) enhance our platform capabilities across all core functions to better serve our members.

Our strategy to achieve these objectives is to (a) invest in our member acquisition channels, especially digital and partner channels, (b) enhance our credit and digital banking products, and (c) provide these complementary product categories with a unified and integrated mobile-first experience powered by A.I.

through our Oportun Mobile App.

Our ability to comprehensively address our members' most pressing financial needs effortlessly and at attractive pricing will lead to increased lifetime value as members take advantage of our multiple product offerings.

Invest in member acquisition channels – To expand our member base, we plan to invest in scaling our marketing capabilities via brand marketing (including online and broadcast media) and direct marketing (including paid and organic online advertising and social media as well as offers made through our Digit mobile application) for our credit products and digital banking services.

In addition, our origination partnerships with WebBank for credit cards and MetaBank, N.A.

for personal loans allow us to reach new members across the nation, mainly through our digital marketing capabilities.

We have significant opportunity to take market share as we increase awareness of Oportun’s superior value proposition to members in markets we entered through these partnerships.

Invest in member acquisition channels – To expand our member base, we plan to invest in scaling our marketing capabilities for our credit products and digital banking services.

For example, via brand marketing (including online and broadcast media) and direct marketing (including paid and organic online advertising and social media as well as offers made through our Oportun Mobile App).

In addition, our origination partnerships with WebBank for credit cards and Pathward, N.A.

(formerly known as "MetaBank, N.A.) for personal loans allow us to reach new members across the nation, mainly through our digital marketing capabilities.

We have significant opportunity to gain market share as we increase awareness of Oportun’s superior value proposition to members in markets we entered through these partnerships.

In addition to our direct-to-consumer channels, we reach incremental members through our Lending as a Service product offering.

By entering Lending as a Service partnerships with other companies, we create new proprietary channels through which to offer our lending products and financial services and acquire new members, multiplying our membership growth potential.

We plan to add additional Lending as a Service partners in the future, both with retail origination capabilities, similar to DolEx and Barri Financial, and fully digital platforms such as Sezzle, a leader in the buy-now-pay-later space.

We will also seek to market our digital banking products to former Oportun borrowers who successfully repaid their loans and intend to market our credit products to former Digit members.

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We believe that as we scale our suite of digital banking products and services, we will further improve member loyalty and increase member lifetime value.

We also expect to continue to derive actionable insights to further drive growth of our secured personal loan and credit card products that are still early in their market adoption lifecycle.

We also expect to continue to

derive actionable insights to further drive growth of our secured personal loan and credit card products that are still early in their market adoption lifecycle.

Additionally, we will continue to invest significantly in our artificial intelligence capabilities to expand the functionality and efficiency of our products.

Provide a unified and integrated mobile experience – In order for all members and potential members to be made aware of and offered our full range of products, we are developing a single acquisition funnel for our products to increase member conversion and decrease cost of member acquisition.

This affords the broadest possible opportunity to sustain long-term relationships with our members.

Our digital banking platform enables us to have frequent and in some cases daily engagement with our members through the benefit of our budgeting and money management tools.

Provide a unified and integrated mobile experience – We recently launched our Oportun Mobile App, which brings together all of our products into a seamless user experience.

Our Oportun Mobile App will ensure our members and potential members are made aware of and have access to our full range of products, which furthers our vision to make financial health effortless for our members.

In addition, we believe this single acquisition funnel will increase member conversion and decrease cost of member acquisition.

This affords the broadest possible opportunity to sustain long-term relationships with our members and will enable us to engage with our members more frequently.

We plan to invest in increased content and functionality to further increase our members’ engagement.

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Our digital banking products include, automated savings, as well as a digital bank account and long-term investing and retirement savings available through partners.

Consumers are able to become members and access our products through our digital banking app — the Digit app — and the Oportun.com website, which are our primary channels for onboarding and serving members.

Consumers are able to become members and access our products through our mobile application, the Oportun Mobile App and the Oportun.com website, which are our primary channels for onboarding and serving members.

Our personal loan products are also available over the phone or through our retail and Lending as a Service partner locations.

We help potential and current members become aware of our product offerings through brand marketing (including online and broadcast media and outdoor advertising, including the physical presence of retail locations in some of the communities we serve) and direct marketing (including SMS/text, email, mail and offers made available through our digital banking app).

Credit Products

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Our competitive differentiation in personal loans comes from our segment focus, our technology, data, and A.I.-driven approach to delivering personal loans, and the way we tailor our product designs and borrowers experience to meet and exceed the expectations of our target members.

This product is currently the majority of our revenue and profitability, and continues to have significant opportunity for growth, benefiting from category growth as well as growth in our brand awareness outside of our historical regional operating footprint (leveraging our partnership with MetaBank, N.A.).

Our personal loan is a simple-to-understand, affordable, unsecured, fully amortizing installment loan with fixed payments throughout the life of the loan.

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As part of our underwriting process, we only approve loans that meet our ability-to-pay criteria.

As of December 31, 2021, we originate unsecured personal loans in 12 states through state licenses and in 26 states through our partnership with MetaBank, N.A.

As of December 31, 2022, we originate unsecured personal loans in 12 states through state licenses and in 30 states through our partnership with Pathward, N.A.

Secured Personal Loans - In April 2020, we launched a personal installment loan product secured by an automobile, which we refer to as secured personal loans.

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As of December 31, 2022, for all active loans in our portfolio and at time of disbursement, the weighted average term and APR at origination was 49 months and 28.3%, respectively.

As part of our underwriting process, we verify income for all applicants and only approve loans that meet our ability-to-pay criteria.

Our secured personal loans are currently offered in California, Texas and Florida, and we are in the process of expanding to other states.

As part of our underwriting process, we evaluate the collateral value of the vehicle, verify income for all applicants and only approve loans that meet our ability-to-pay criteria.

Our secured personal loans are currently offered in California, Texas, Florida, Arizona and New Jersey and we are in the process of considering expansion into other states.

Credit Cards - We lau nched the Oportun® Visa® Credit Card, issued by WebBank, Member FDIC, in December 2019, and offer credit cards in 45 states as of December 31, 2022 .

This product has the advantage of being an “everyday, in your pocket” product, easily usable for small ticket purchases.

Additionally we are finding that it’s a great additional Oportun product for applicants that first came to us for a personal loan – they appreciate the opportunity to further build their credit and benefit from the convenience of a credit card.

Our competitive differentiation will increasingly come from cross-selling credit cards to borrowers that first came to us for personal loans or our digital banking products.

Credit lines for our credit cards range in size from $300 to $3,000 with an APR between 24.9% to 29.9%.

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Digital Banking Products

With the acquisition of Digit on December 22, 2021, we now offer a variety of digital banking products.

Digit is a digital financial health platform that offers personalized and automated savings, investing and banking tools.

Members integrate their existing bank accounts into the platform or they can make Digit their primary banking relationship through a bank partner.

Members set goals for savings or investing through the

Digit application or use the application to help manage their debt.

With the acquisition of Digit on December 22, 2021, a digital financial health platform, we now offer a variety of digital banking products, including personalized and automated savings, investing and banking products.

Members are able to integrate their existing bank accounts into the platform or they can make us their primary banking relationship through our bank partner.

Members set goals for savings or investing through the application or use the application to help manage their debt.

Then, our A.I.

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We will continue to invest in and evolve our digital banking platform to further improve our ability to serve our members and continue to build lasting and durable relationships with them.

Digit Savings – Our Digit Savings product is designed to understand a member’s cash flows and save a calculated amount on a regular basis to effortlessly achieve savings goals.

Savings – Our Savings product is designed to understand a member’s cash flows and save a calculated amount on a regular basis to effortlessly achieve savings goals.

Digit's savings product utilizes machine learning to analyze a member’s transaction activity and build forecasts of the member’s future cash flows to make small, frequent savings decisions according to the member’s financial goals in a personalized manner.

According to a January 2023 survey by Bankrate, more than half of all Americans do not have enough savings to cover an unplanned expense of $1,000.

After one year using the automated savings product, members have been able to increase their liquid savings by approximately 50%.

Since 2015 Digit has helped members save $7.2 billion and pay down more than $330.0 million in debt .

Digit Direct – Our Digit Direct product offers a full checking account, through a bank partner, that intelligently organizes and budgets a member’s money across bills, savings, and spending.

The bank account with a brain ™ , Digit Direct leverages the same A.I.

After one year using the automated savings product, our members have been able to increase their liquid savings by approximately 50% on average.

Since 2015 Digit has helped members save over $8.9 billion .

Direct – Our Direct product offers a full checking account, through a bank partner, that intelligently organizes and budgets a member’s money across bills, savings, and spending.

The bank account with a brain ™ , Direct leverages the same A.I.

engine used for our savings product to automatically identify and organize recurring bills and guides spending to ensure members' savings goals are met, and that members know exactly what they can safely spend.

This is on top of what members can expect from a traditional checking account, including a physical and virtual debit card to use for purchases and ATM withdrawals and checks.

According to a BAMM population survey in October 2019, 90% of U.S.

consumers think that being financial healthy is important but 57% do not want to think about money.

Our product allows our busy members to get back to living their lives without stressing about money management.

Digit Investing and Digit Retirement – Our Digit investment and retirement products are a longer-term savings solution via an A.I.-driven portfolio allocation into low-cost investments based upon risk-tolerance.

Investing and Retirement – Our investment and retirement products are a longer-term savings solution via an A.I.-driven portfolio allocation into low-cost investments based upon risk-tolerance.

According to Financial Health Network “Financial Health Pulse:

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In July 2021, we signed Barri Financial Group as a Lending as a Service partner and we launched in several of their locations in October 2021.

In January of 2022, we announced our first all-digital Lending as a Service partnership with Sezzle, a leading provider of BNPL financing options.

When deployed, Oportun will be available as a checkout option, through Sezzle, for larger purchases, which we believe will allow us to reach more new members.

In January of 2022, we announced our first all-digital Lending as a Service partnership with Sezzle, a leading provider of BNPL financing options which launched in the first quarter of 2023.

Oportun is now available as a checkout option, through Sezzle, for larger purchases which we believe will allow us to reach more new members.

We believe we will be able to offer Lending as a Service to additional partners and expand our membership base.

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We believe our technology, responsible construction of our products, A.I.-enabled digital platform and superior member value proposition allow us to compete favorably on each of these factors.

Going forward,

however, our competition could include large traditional financial institutions that have more substantial financial resources than we do, and which can leverage established distribution and infrastructure channels.

Going forward, however, our competition could include large traditional financial institutions that have more substantial financial resources than we do, and which can leverage established distribution and infrastructure channels.

Additionally, new companies are continuing to enter the financial technology space and could deploy innovative solutions that compete for our members.

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For example, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act” ), as well as many state statutes provide a mechanism for state attorneys general to investigate us.

In addition, the Federal Trade Commission has jurisdiction to investigate aspects of our business.

In addition, the Federal Trade Commission (the "FTC") has jurisdiction to investigate aspects of our business.

Federal consumer protection laws that these regulators may enforce include laws related to the use of credit reports and credit reporting accuracy, data privacy and security, disclosure of applicable loan terms, anti-discrimination laws, laws protecting members of the military, laws governing payments, including recurring ACH payments and laws regarding electronic signatures and disclosures.

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We are subject to the USA PATRIOT Act, Office of Foreign Assets Control, Bank Secrecy Act, Anti-Money Laundering laws, and Know-Your-Customer requirements and certain state money transmitter laws.

In October 2021, we announced the decision to voluntarily withdraw our previously filed application with the Office of the Comptroller of the Currency (the “OCC”) to obtain a national bank charter through the establishment of a national bank.

As previously announced, our intent is to amend elements of the application to reflect the changes in our business and refile with the OCC for a national banking charter;

provided, that it is possible that we could establish or acquire a banking entity in a different form, or choose not to pursue a bank charter.

In the future, if we decide to pursue and are successful in obtaining a banking charter, we will be regulated by the Federal Reserve and the FDIC, and depending upon the type of charter, the OCC.

The laws and regulations applicable to us are continuing to evolve through legislative and regulatory action and judicial and regulatory interpretation and we monitor these areas closely.

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For more information with respect to the regulatory framework affecting our business, see "Risk Factors – Risks Related to our Industry and Regulation."

Information Technology, Infrastructure and Security

Technology Infrastructure

Our Technology Infrastructure

Our applications, including our proprietary workflow management system that handles loan and credit card application, document verification, loan disbursement and servicing, as well as our systems that handle that our automated savings, investing and banking tools are architected to be highly available, resilient, scalable, and secure.

Supporting systems are managed in a cloud environment hosted by industry-leading cloud service providers that are N+2 compliant.

Cloud-Native Technologies and Scalable Cloud Architecture

We utilize various facets of cloud capabilities to deliver a world-class experience for our members.

Utilizing a combination of serverless, Kubernetes and EC2 technologies, we provide a highly available and scalable platform to run our various workloads with minimal overhead.

Critical services in the cloud are deployed across multiple availability zones within a region to ensure that we have the necessary scalability and availability to support our service-level objectives.

Service design is vetted against current industry best practices to ensure that as the cloud evolves, we are taking advantage of current feature sets surrounding availability and scalability.

Cybersecurity

Our information security program governs how we safeguard the confidentiality, integrity, and availability of our data and systems.

We also believe that operating a secure business must span people, process, and technology and as such build security awareness in our corporate communications and training efforts.

We continuously monitor our environment in real-time using tools designed to detect security events and ensure our network security with a secure, private cloud network.

We also encrypt sensitive personally identifiable information and engage with third parties to audit our information security program and to perform regular penetration tests of our web applications and cloud environments.

Disaster Recovery and Preparedness

To safeguard the confidentiality, integrity and availability of our data and systems, we maintain a comprehensive program of cybersecurity and privacy policies and procedures, management oversight, accountability structures, and technology design processes.

Senior management regularly provides the Board's audit and risk committee with updates to our program.

This program also includes a cyber incident response plan that provides controls and procedures for timely and accurate reporting of any material cybersecurity incident.

To ensure organization-wide attention to cybersecurity issues, we conduct mandatory employee training on cybersecurity and provide ongoing cybersecurity education and awareness, such as mock phishing attacks and cybersecurity awareness materials.

We continuously monitor our environment in real-time using tools designed to detect security events and engage with third parties to audit our information security program and to perform regular penetration tests of our web applications and cloud environments.

We remain vigilant in staying ahead of new and emerging risks utilizing our tools and security teams and continue to review and make strategic investments in our information security program to keep our data and systems secure.

Infrastructure is in place and designed to support redundancy across our mission critical systems.

Disaster recovery and business continuity plans, and tests have been completed, which help to ensure our ability to recover in the event of a disaster or other unforeseen event.

In the event of a catastrophic disaster affecting one of our hosting facilities, we can restore production databases to minimize disruption of service.

Furthermore, additional measures for operational recovery include real-time replication of production databases for quick failover.

In the event of database restores, we perform data consistency checks to validate the integrity of the data recovery process.

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• Employee Engagement – We conduct an annual engagement survey as a means of measuring employee engagement and satisfaction, as well as a tool for improving our people strategies for the year ahead.

Approximately 80% of our employees participated in our 2021

employee engagement survey, of which 81% reported that they were satisfied with Oportun as a place to work and 85% reported that they were proud to work at Oportun.

The results are shared with our employees and reviewed by senior leadership to identify areas of progress and areas for improvement.

The feedback is prioritized into actions and activities in response to this feedback to drive meaningful improvements in employee engagement.

• Diversity and Inclusion – The majority of Oportun employees identify as women or members of an underrepresented group and the majority of Oportun’s leadership team identifies as either women or members of an underrepresented group.

We define the leadership team as Directors, Senior Directors, Vice Presidents and above, inclusive of the Board of Directors.

In 2020, we launched a global diversity, equity, and inclusion (DEI) initiative to actively assess and build on the progress we have made as an organization, including establishing a DEI council comprising a representative group of employees.

Our people are encouraged to engage with and support one another through our seven employee-organized employee resource groups, including the Asian Pacific Islanders, Black Professionals @ Oportun, (dis)Ability, Oportun Latinx & Allies (hOLA), True Colors, Self-Enablement & Empowerment Network (SEEN), Veteran's ERG (VERGE), and Women's Initiative Network (WIN).

Digit employees have also organized resource groups in the following communities:

Asian, black, South Asian, Latinx, people with children/main caregivers of children, LGBTQ+ and women.

In 2021, we implemented company-wide diversity, inclusion and belonging training and our leadership teams participated in facilitated workshops focused on improving diversity and inclusion and addressing unconscious bias.

Approximately 82% of our employees participated in our 2022 employee engagement survey, of which 85% reported that they were satisfied with Oportun as a place to work and 89% reported that they were proud to work at Oportun.

Survey results are evaluated and shared across the organization, including our Board’s compensation and leadership committee, to identify areas of progress and areas for improvement.

Based on feedback received this year, management

implemented several initiatives to improve the employee experience through rewards and recognition, increased communication transparency, and streamlining processes and collaboration tools.

We have been recognized as a Greater Bay Area’s Top Workplace for the past four years and in 2022 we were named one of Comparably’s Companies with Happiest Employees, which is a list derived from top sentiment ratings anonymously provided by employees.

• Diversity and Inclusion – We b elieve that innovation starts with inclusion.

Our focus on diversity and inclusion is reflected throughout our organization, starting at the highest level.

Currently, 70% of our Board identifies as women or members of an underrepresented group and the majority of our leadership team identifies as either women or members of an underrepresented group.

The majority of Oportun employees identify as women or members of an underrepresented group and the majority of Oportun’s leadership team identifies as either women or members of an underrepresented group.

We define the leadership team as Directors, Senior Directors, Vice Presidents and above, inclusive of the Board.

We have nine employee resource groups focused on our Asian, Black, Hispanic/Latinx, LGBTQ+, early career individuals, disability/accessibility, South Asian, veteran, and women communities.

We are committed to fostering a culture of diversity, equity and inclusion;

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and continuing to increase diverse representation at every level of the Company.

This focus also extends to our Board.

Currently, two-thirds of our Board identifies as women or members of an underrepresented group.

• Health, Safety and Wellness – The health, safety, and wellness of our employees are vital to our success.

Our health and safety management system incorporates processes to proactively assess risks to the health and safety of our employees and the community, as well as tracking compliance, incidents, inspections, and corrective actions.

We also require employees to participate in extensive training every year on health and safety topics such as physical security, injury and illness prevention, and security incident reporting.

We have taken additional measures during the COVID-19 pandemic, including providing information resources, daily health screening, testing, plexiglass barriers, and supplemental sick leave for employees with possible COVID-19 symptoms.

We have also expanded the delivery of mental health and wellness resources, including by increasing the frequency of live webinars and partnering with providers to make mental health counseling and overall wellness tools.

• Total Rewards - To attract and retain talent, we offer competitive compensation and non-financial benefits everywhere we operate.

• Total Rewards - We continue to focus on the total wellness of our people, anchored by the pursuit of our mission, creation of career opportunities and promotion of employee well-being.

We benchmark market practices, and regularly review our compensation against the market to ensure it remains competitive.

These benefits are tailored to the markets in which our employees are located.

In addition to salaries, our benefits programs include annual bonuses, equity awards, a 401(k) plan, healthcare and insurance benefits, flexible spending accounts, paid time off, family leave, family care resources, and tools to promote mental health and wellness.

In 2021, we transitioned to a remote-first policy that permits most of our employees to work remotely should their roles allow.

In addition to salaries, our benefits programs include annual bonuses, equity awards, a 401(k) plan, healthcare and insurance benefits, flexible spending accounts, paid time off, family leave, paid time off for volunteering, matching gifts, employee assistance programs, family care resources, and tools to promote mental health and wellness.

In 2021, we transitioned to a remote-first policy and we believe that our remote-first culture gives our employees more flexibility to choose where and how to work, while allowing us to engage with a wider pool of talent.

To support our remote-first culture, we actively encourage personal well-being through initiatives, including wellness days for employees to take time to rest and recharge, engagement programs (speaker events, employee resource groups, virtual events, etc.), and recognition programs.

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and data science.

On February 9, 2023, we announced that we were reducing our corporate employees by 10% in the United States, India and Mexico, or approximately 155 employees.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business