Why I'm Investing in This High-Risk, High-Reward Fintech Stock
I recently initiated a new position in the fintech company OppFi (NYSE: OPFI), a company that went public through a special purpose acquisition company (SPAC) toward the end of 2020 and began trading on its own in July. The company is attempting to revolutionize lending in the subprime credit space, which caters to riskier borrowers, typically with a FICO score below 600.
While investing in this space will undoubtedly come with risk as well as scrutiny from regulators and investors, I do like OppFi's mission and strategic plan so far, and believe the stock has huge potential. Here's why.
OppFi uses artificial intelligence and automation to make small-dollar loans to individuals who normally can't get loans with a traditional bank. The company's main product, the OppLoan, is an installment loan that has an average loan amount of $1,500 over an 11-month period, and is used by borrowers to deal with situations that relate to car trouble, housing, medical bills, family, and education.
Source Fool.com
