CHICAGO, April 22, 2021 /PRNewswire/ -- New survey
data from Opportunity Financial, LLC ("OppFi") shows that thirteen
months into the COVID-19 global pandemic, more than half (53%) of
credit-challenged consumers in the U.S. believe that they are worse
off financially than they were pre-pandemic, with many expecting to
face continued financial hurdles, even as vaccinations proliferate.
In fact, despite encouraging news about the reopening of the
economy, 43% of respondents reported concerns that they would face
eviction and/or need to declare bankruptcy in coming months.
Although federal and local governments have implemented various
forms of relief over the past year, 66% of credit-challenged
consumers in the U.S. still had to seek assistance in the form of
loans or access to credit in the past 12 months.
- At the same time, the pandemic has reduced access to credit for
many – half of those surveyed (50%) reported finding it harder to
access or receive this support.
- Among credit-challenged Americans who were able to receive
support, 40% turned to friends and family to borrow funds and 27%
relied on leveraging credit card debt.
- Looking ahead, 57% of survey respondents predict that they will
need to seek additional assistance over the next year.
- Underscoring the issue is a lack of savings for many; half
(50%) of those surveyed have less than $50 in savings and only about 1 in 6 (17%)
currently have $400 or more in
savings.
The survey also found that temporary measures – including
multiple rounds of stimulus checks, forbearance and eviction
moratoriums – provided fleeting relief for everyday consumers in
the U.S. Although 50% of those surveyed reported depending on the
temporary measures to stay solvent during the pandemic, about one
in four (29.3%) of survey respondents noted it was not enough and
they continue to worry they will be unable to remain in good
financial standing despite the temporary measures.
"The reality of the everyday consumer in the U.S. shows that not
everyone was able to weather the pandemic in the same way. There is
a gulf between the experiences and opportunities of those that are
financially secure and able to access the tools and resources that
act as safety nets, and those who are not," said Jared Kaplan, CEO of OppFi. "In the absence of a
sustainable solution that addresses financial health, the 150
million Americans who live paycheck to paycheck, will be forced to
deal with the prolonged impacts of this pandemic because they will
remain locked out of the traditional financial ecosystem. Over the
long term, many of these consumers will continue to face barriers
engaging in activities traditionally viewed as building blocks for
creating financial security."
Additional survey insights include:
- The vast majority (75%) of credit-challenged consumers in the
U.S. do not own stock and were never able to benefit from the
strong equities market of the past year.
- Many (58.5%) respondents reported spending their 2020 stimulus
checks within three weeks of receiving them.
- While respondents across all age groups reported putting off or
considering whether to put off important commitments like building
emergency savings (29%), this was most stark among older adults
nearing retirement – almost half 46% of those over 55 years old
reported taking this approach to their savings.
- Respondents aged over 55 years old also reported slightly
higher rates of worsening financial stress (41%) compared with the
general population (33%), calling into question the impact of the
pandemic on retirement and financial planning for everyday
consumers in the U.S.
- Among younger adults, 32.5% of respondents 18-35 years old
deprioritized buying a house and 26% deprioritized having children
due to their financial situations.
All reported findings are from an OppFi survey assessing 524
U.S. adults ages 18 or older and making an annual income of less
than $80,000, with a self-reported
FICO score of less than 620. The survey was fielded in March 2021.
OppFi is a leading financial technology platform that powers
banks to help the everyday consumer gain access to credit. On
February 9, 2021, OppFi and FG New
America Acquisition Corp. (NYSE: FGNA), a special purpose
acquisition corporation, entered into a definitive agreement for a
business combination that would result in OppFi becoming a public
company.
About OppFi
OppFi a leading financial technology
platform that powers banks to help the everyday consumer gain
access to credit. Through its unwavering commitment to customer
service, OppFi helps consumers who are turned away by traditional
providers build a better financial path. OppFi has facilitated the
issuance of more than 1.5 million loans. The company has been
ranked as an Inc. 5000 company for five straight years and was
named the eighth fastest-growing Chicagoland company in 2020 by
Crain's Chicago Business. The company was also named on
Forbes America 2021 list of
America's Best Startup Employers and Built In's 2021 Best Places to
Work in Chicago. The company
maintains an A+ rating from the Better Business Bureau (BBB) and
maintains a 4.8/5 star rating with more than 14,000 online customer
reviews, making it one of the top customer-rated financial
platforms online. For more information, please visit
www.oppfi.com.
About FGNA
FG New America Acquisition Corp., (NYSE:
FGNA), is a NYSE-listed blank check company formed for the purpose
of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with
one or more businesses. For more information, please visit
www.fgnewamerica.com.
Contact: Media@oppfi.com
Forward-Looking Statements
This information includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. FGNA's and OppFi's actual
results may differ from their expectations, estimates and
projections and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, OppFi's beliefs regarding the impact of the proposed
business combination on its business. These forward-looking
statements involve significant risks and uncertainties that could
cause the actual results to differ materially from the expected
results. Most of these factors are outside FGNA's and OppFi's
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) the occurrence of
any event, change or other circumstances that could give rise to
the termination of the definitive business combination agreement
(the "Agreement"); (2) the outcome of any legal proceedings that
may be instituted against FGNA and OppFi following the announcement
of the Agreement and the transactions contemplated therein; (3) the
inability to complete the proposed business combination, including
due to failure to obtain approval of the stockholders of FGNA,
certain regulatory approvals or satisfy other conditions to closing
in the Agreement, including with respect to the levels of FGNA
stockholder redemptions; (4) the occurrence of any event, change or
other circumstance that could give rise to the termination of the
Agreement or could otherwise cause the transaction to fail to
close; (5) the impact of COVID-19 on OppFi's business and/or the
ability of the parties to complete the proposed business
combination; (6) the inability to obtain or maintain the listing of
the combined company's shares of common stock on the New York Stock
Exchange following the proposed business combination; (7) the risk
that the proposed business combination disrupts current plans and
operations as a result of the announcement and consummation of the
proposed business combination; (8) the ability to recognize the
anticipated benefits of the proposed business combination, which
may be affected by, among other things, competition, the ability of
OppFi to grow and manage growth profitably and retain its key
employees; (9) costs related to the proposed business combination;
(10) changes in applicable laws or regulations; (11) the
possibility that OppFi or FGNA may be adversely affected by other
economic, business, and/or competitive factors; (12) whether OppFi
will be successful in launching OppFi Card, including whether there
will be consumer or market acceptance of OppFi Card; and (13) other
risks and uncertainties indicated from time to time in FGNA's proxy
statement relating to the proposed business combination, including
those under "Risk Factors" therein, and in FGNA's other filings
with the SEC. FGNA and OppFi caution that the foregoing list of
factors is not exclusive. FGNA and OppFi caution readers not to
place undue reliance upon any forward-looking statements, which
speak only as of the date made. FGNA and OppFi do not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions
or circumstances on which any such statement is based.
Important Information and Where to Find It
In connection with the proposed business combination, FGNA has
filed a preliminary proxy statement with the SEC and intends to
file a definitive proxy statement with the SEC. FGNA's stockholders
and other interested persons are advised to read the preliminary
proxy statement and the amendments thereto and, when available, the
definitive proxy statement and documents incorporated by reference
therein filed in connection with the proposed business combination,
as these materials will contain important information about OppFi,
FGNA and the proposed business combination. When available, the
definitive proxy statement and other relevant materials for the
proposed business combination will be mailed to stockholders of
FGNA as of a record date to be established for voting on the
proposed business combination. Stockholders will also be able to
obtain copies of the preliminary proxy statement, the definitive
proxy statement and other documents filed with the SEC that will be
incorporated by reference therein, without charge, once available,
at the SEC's web site at www.sec.gov, or by directing a request to:
FG New America Acquisition Corp., Attention: Hassan Baqar, Chief Financial Officer, 105 S.
Maple Street, Itasca, Illinois 60143.
Participants in the Solicitation
FGNA and its directors and executive officers may be deemed
participants in the solicitation of proxies from FGNA's
stockholders with respect to the business combination. A list of
the names of those directors and executive officers and a
description of their interests in FGNA was filed in the preliminary
proxy statement for the proposed business combination and is
available at www.sec.gov. Additional information regarding the
interests of such participants will be contained in the definitive
proxy statement for the proposed business combination when
available.
OppFi and its directors and executive officers may also be
deemed to be participants in the solicitation of proxies from the
stockholders of FGNA in connection with the business combination. A
list of the names of such directors and executive officers and
information regarding their interests in the proposed business
combination was included in the preliminary proxy statement for the
proposed business combination. Additional information regarding the
interests of such participants will be contained in the definitive
proxy statement for the proposed business combination when
available.
Non-Solicitation
This information shall not constitute a solicitation of a proxy,
consent or authorization with respect to any securities or in
respect of the proposed business combination. This information
shall also not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of
securities in any states or jurisdictions in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
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SOURCE OppFi