Lender Oportun acquires personal-finance app Digit

Oportun, a lender focused on the low- to moderate-income segments of the population, announced that it acquired personal-finance app Digit for $212.9M ($98.5M in equity and $114.4M in cash).

Why should we care?
Digit was one of the early digital personal finance apps on the market, launching in 2013. Its offerings evolved from an auto-save app to additional products like bank accounts, investments and retirement products. It has since gained more than 600,000 paying customers, and a new combined entity would allow Digit and Oportun access to 1.4 million customers. For Oportun, acquiring Digit will help the fintech on its journey to delve deeper into the banking sphere. The company applied for a bank charter with the Office of the Comptroller of the Currency (OCC) last year, but withdrew it last month. “With this acquisition, we believe we will be able to quickly actualize a bold vision for an [artificial intelligence]-driven, digital-first platform that helps members daily when they need to borrow, save, invest, and bank," Raul Vazquez, CEO of Oportun, said. "As a combined company, we will redefine what it means to be a neobank, with outstanding products and service that address the everyday financial needs of hardworking people." The deal, which is expected to close in late 2021 or early 2022, allows for Digit’s more than 100 employees to join Oportun and continue their job functions. Digit will continue to operate as a business unit within Oportun led by its founder Ethan Bloch.