Just weeks after withdrawing its application for a US bank charter, consumer lender Opportun has agreed a $213 million deal to acquire neobank Digit.
Founded in 2013, Digit provides its 600,000 paying members with personalised savings, investing and banking tools.
The stock and shares deal creates a business with a combined 1.4 million customer base.
The acquisition is a complementary fit for both companies, giving Opportun the ability to offer mobile banking, automated savings and robo-investing to its customers and open up access to lending products for Digit's consumer base.
Raul Vazquez, CEO of Oportun, says: “In Digit, we are purchasing a proven and scalable neobanking solution that gets us to market 3-5 years earlier than if we were to build it on our own.”
Digit will operate as a business unit within Oportun and continue to be led by founder and CEO, Ethan Bloch. All of Digit’s 100+ employees will join Oportun.