Purpose Financial Company Profile

Background

Overview

Purpose Financial, Inc. is an innovative consumer financial services company dedicated to enhancing financial inclusion and stability. Established in 1997 as Advance America, the company rebranded to Purpose Financial in 2020 to better reflect its mission of providing consumers with financial solutions that improve their financial well-being.

Mission and Vision

Purpose Financial's mission is to help each customer achieve their version of financial stability in the moment and in the future. The company envisions a dynamic credit market that fully reflects consumers' financial needs and expectations.

Primary Area of Focus

The company specializes in offering a diverse suite of consumer credit products, including small-dollar credit options, to meet the evolving financial needs of consumers. Through its brands, Purpose Financial delivers an omni-channel, customer-centric experience both in-store and online.

Industry Significance

Purpose Financial plays a significant role in the consumer financial services industry by providing accessible and transparent credit solutions, thereby promoting financial inclusion and stability for a wide range of consumers.

Key Strategic Focus

Core Objectives

• Financial Inclusion: Enhancing access to financial services for underserved and underbanked populations.

• Customer-Centric Innovation: Developing and offering innovative financial products tailored to meet diverse consumer needs.

• Operational Excellence: Ensuring efficient and effective delivery of financial services through both physical storefronts and digital platforms.

Specific Areas of Specialization

• Consumer Credit Products: Providing a range of credit solutions, including payday loans, installment loans, and lines of credit.

• Financial Education: Offering resources and tools to help consumers make informed financial decisions.

Key Technologies Utilized

• Digital Platforms: Leveraging online and mobile platforms to offer seamless access to financial products and services.

• Data Analytics: Utilizing data-driven insights to personalize offerings and improve customer experiences.

Primary Markets Targeted

• Underbanked and Unbanked Consumers: Individuals with limited access to traditional banking services.

• Small Business Owners: Providing financial solutions to support business operations and growth.

Financials and Funding

Funding History

• Total Funds Raised: Purpose Financial has secured significant investments to support its growth and innovation initiatives.

Recent Funding Rounds

• February 2021: Announced a $53.5 million investment from Allianz X, the digital investments unit of the Allianz Group. This partnership aims to accelerate growth and expand product development across Purpose Financial's key businesses.

Notable Investors

• Allianz X: The digital investments unit of the Allianz Group, focusing on investments in leading fintech businesses globally.

Intended Utilization of Capital

• Growth Acceleration: Expanding the reach and impact of Purpose Financial's consumer credit products.

• Product Development: Enhancing and diversifying the company's financial offerings to meet evolving consumer needs.

Pipeline Development

Key Pipeline Candidates

• Purpose Money: Launched in 2020, Purpose Money is a financial empowerment platform that expands access to essential banking services without minimum balance requirements or monthly fees.

Stages of Development

• Purpose Money: Currently operational, offering a range of banking services designed to promote financial inclusion.

Target Conditions

• Financial Inclusion: Addressing the needs of consumers who are underbanked or lack access to traditional banking services.

Anticipated Milestones

• Expansion of Services: Continuing to enhance and expand the offerings of Purpose Money to serve a broader audience.

Technological Platform and Innovation

Proprietary Technologies

• Digital Banking Platform: A proprietary platform that supports Purpose Money, enabling users to access banking services seamlessly.

Significant Scientific Methods

• Data Analytics: Employing advanced data analytics to understand consumer behavior and tailor financial products accordingly.

AI-Driven Capabilities

• Credit Scoring Models: Utilizing AI to develop alternative credit scoring models, enhancing access to credit for underserved populations.

Leadership Team

Executive Profiles

• Jessica Rustin – Chief Executive Officer

• Professional Background: Joined Purpose Financial in 2009; previously held positions at a regional law firm and various government-related roles. Member of the South Carolina State Bar.

• Role within the Company: Oversees the strategic direction and operations of Purpose Financial.

• Erdem Cimen – Chief Financial Officer

• Professional Background: Serves as the CFO, responsible for managing the company's financial actions.

• Role within the Company: Leads financial strategy and operations.

• Paul Cho – Chief Operating Officer

• Professional Background: Joined Purpose Financial in 2022; previously served as COO of Above Lending and CEO of Align Income Share Funding; served 8 years active duty as an officer in the US Navy.

• Role within the Company: Manages day-to-day operations and ensures operational efficiency.

• Travis Gonzalez – Chief Product Officer

• Professional Background: Joined Purpose Financial in 2018; previously Chief Analytics Officer at Braviant Holdings; former VP Marketing/Managing Director of Data Science at Springleaf Financial and iLoan.

• Role within the Company: Oversees product development and innovation strategies.

• Jim McQueen – Chief Technology Officer

• Professional Background: Joined Purpose Financial in 2012; 21 years in technology, including roles in asset management software, telecom, and financial services; management positions in development, project management, QA, and business analysis.

• Role within the Company: Leads technological initiatives and infrastructure.

• Denae Roth – Chief Legal Officer

• Professional Background: Joined Purpose Financial in 2010; member of the Association of Corporate Counsel, South Carolina Board; Georgia Bar Member and South Carolina Limited Certificate Admission.

• Role within the Company: Manages legal affairs and compliance.

• Johnny Li – Executive Vice President, Digital and Omni Operations

• Professional Background: Serves as EVP, focusing on digital and omni-channel operations.

• Role within the Company: Enhances digital engagement and operational integration.

• Steven Weese – Executive Vice President, Organizational Improvement

• Professional Background: Joined Purpose Financial in 2011; previously with Deloitte, providing attestation and consulting services; licensed Certified Public Accountant in Illinois.

• Role within the Company: Focuses on organizational development and improvement strategies.

• Leigh Santanello – Executive Vice President, Human Resources

• Professional Background: Joined Purpose Financial in 2007; previously Risk Manager at Buffets, Inc.; holds SPHR and CBP certifications.

• Role within the Company: Oversees human resources and talent management.

• Steve Ritter – Executive Vice President, Branch Operations

• Professional Background: Joined Purpose Financial in 2021; former Senior Managing Director for OneMain Financial; former Vice President/Director of Operations for American General Finance.

• Role within the Company: Manages branch operations and service delivery.

Competitor Profile

Market Insights and Dynamics

The consumer financial services market is characterized by a growing demand for accessible and transparent credit solutions. Technological advancements and changing consumer behaviors are driving innovation and competition within the industry.

Competitor Analysis

• PureFacts: A Canadian fintech company specializing in financial technology solutions.

• Innovest: A New York-based company offering investment management solutions.

• Addepar: A California-based financial technology company providing data aggregation and analytics platforms.

Strategic Collaborations and Partnerships

In February 2021, Purpose Financial secured a $53.5 million investment from Allianz X, the digital investments unit of the Allianz Group. This partnership aims to accelerate growth and expand product development across Purpose Financial's key businesses.

Operational Insights

Purpose Financial differentiates itself through its customer-centric approach, diverse product offerings, and commitment to financial inclusion. The company's omni-channel delivery model, combining physical storefronts with digital platforms, enables it to effectively serve a wide range of consumers.

Strategic Opportunities and Future Directions

Purpose Financial is well-positioned to capitalize on the growing demand for accessible financial services.