![]() The company has hired Nick Clements, formerly of LendingTree and Barclaycard, to run the credit card business. OneMain declined to share more details prior to the card’s launch. The card, which will run on Mastercard’s network, will “reward good payment habits and reinforce credit building behaviors,” Shulman said. Later this year, OneMain will launch a credit card aimed at both existing customers and new prospects, including those who might not qualify for larger OneMain loans. The financial wellness app also figures to lead to higher levels of customer engagement, increasing the chances that users will turn to OneMain for their next loan. The acquisition could help OneMain collect more customer transaction data, which it would then be able to use for underwriting and marketing. He said the Trim acquisition will help customers improve their financial health by helping them negotiate their cable bills, for example.Īdding Trim’s employees will also give OneMain more expertise to build new digital tools for customers, he added. Shulman was commissioner of the Internal Revenue Service from 2008 to 2012 before joining OneMain in 2018. It focuses on consumers who typically have credit scores below 700, which may shut them out of traditional bank loans.Įvansville, Indiana-based OneMain emerged from the 2015 merger of two storefront lending chains: Springleaf Financial and OneMain Financial, which was previously owned by Citigroup. OneMain offers installment and auto loans ranging between $1,500 and $20,000, with a maximum annual percentage rate of 36%. Other examples include Oportun, which announced plans in February to close 136 retail locations, and the tax-prep chain H&R Block, which offers a limited menu of financial products and plans to reduce its physical footprint over time. OneMain is one of numerous traditional subprime lenders that are trying to find the optimal mix on physical and digital distribution channels. “And then they facilitate the loan process online.” At the same time, he added, maintaining a branch network gives people who prefer in-person experiences an option and is a critical source of marketing to new customers.Įven consumers who do not use OneMain branches may see the company’s signs and do a Google search, Hecht noted. OneMain was not “starting from zero” in investing in digital capabilities, but it has been more aggressive lately in adapting to consumers’ shifting preferences, said Jefferies analyst John Hecht. OneMain’s net income rose to $413 million in the first quarter, up from $32 million a year ago, when a massive buildup of reserves to prepare for possible loan losses weighed on earnings. The behavior of OneMain customers has since shifted heavily, with 46% of its new loans closing without a branch visit in the first quarter, up from 13% in the first quarter of 2020. “It was either prescience or good luck, but we had the ability to start originating digitally at the beginning of 2020,” Shulman said. ![]() ![]() While the company was investing heavily in back-end capabilities, it did not launch a full digital experience for borrowers until last year. OneMain may have trailed its digital-only competitors some years ago, Shulman acknowledged. “Our future is to be the leading nonprime lender and have an omni-channel experience, which allows the customer to do business with us the way they want to do business.” “Our future is not a digital pure play,” CEO Doug Shulman said in a recent interview. Rather, OneMain is committed to offering customers an in-person experience through its more than 1,500 branches in 44 states - but also giving them the option of completing some or all of the process online or by phone. ![]()
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