Enova International, Inc. operates as a technology and analytics company that focuses on providing online financial services.
As of December 31, 2024, the company offered or arranged loans or draws on lines of credit to consumers in 37 states in the United States and Brazil. The company also offered financing to small businesses in 49 states and Washington D.C. in the United States. The company uses its proprietary technology, analytics and customer service capabilities to quickly evaluate, und...
Enova International, Inc. operates as a technology and analytics company that focuses on providing online financial services.
As of December 31, 2024, the company offered or arranged loans or draws on lines of credit to consumers in 37 states in the United States and Brazil. The company also offered financing to small businesses in 49 states and Washington D.C. in the United States. The company uses its proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing it to offer consumers and small businesses credit or financing when and how they want it. The company's customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies, and other lenders.
The company is an early entrant into online lending, launching its online business in 2004, and through December 31, 2024, it had completed approximately 65.0 million customer transactions and collected more than 85 terabytes of accessible customer behavior data since launch, allowing it to better analyze and underwrite its specific customer base. The company has significantly diversified its business over the past several years having expanded the markets it serves and the financing products it offers. These financing products include installment loans and line of credit accounts.
The company has developed proprietary underwriting systems based on data it has collected over its more than 20 years of experience. These systems employ advanced risk analytics, including machine learning and artificial intelligence, to decide whether to approve financing transactions, to structure the amount and terms of the financings the company offers pursuant to jurisdiction-specific regulations and to provide customers with their funds quickly and efficiently. The company's systems closely monitor collection and portfolio performance data that it uses to continually refine machine learning-enabled analytical models and statistical measures used in making its credit, purchase, marketing and collection decisions. Approximately 90% of models used in the company's analytical environment are machine learning enabled.
The company's flexible and scalable technology platforms allow it to process and complete customers' transactions quickly and efficiently. In 2024, the company processed approximately 3.9 million transactions, and it continues to grow its loan and finance receivable portfolios and increase the number of customers it serves through desktop, tablet and mobile platforms. The company's highly customizable technology platforms allow it to efficiently develop and deploy new products to adapt to evolving regulatory requirements and consumer preference, and to enter new markets quickly. In 2020, the company acquired, through a merger, On Deck Capital Inc. (OnDeck), a small business lending company offering lending and funding solutions to small businesses in the U.S., Australia, and Canada, to expand its small business offerings. The company owns Pangea Universal Holdings (Pangea), which provides mobile international money transfer services to customers in the U.S. with a focus on Latin America and Asia. These new products have allowed the company to further diversify its product offerings and customer base.
The company has been able to consistently acquire new customers and successfully generate repeat business from returning customers when they need financing. The company's customers are loyal to it because they are satisfied with its products and services. The company acquires new customers from a variety of sources, including visits to its own websites, mobile sites or applications, and through direct marketing, affiliate marketing, lead providers and relationships with other lenders. The online convenience of the company's products and its 24/7 availability to accept applications with quick approval decisions are important to its customers.
Once a potential customer submits an application, the company quickly provides a credit or purchase decision. During the entire process, from application through payment, the company provides access to its well-trained customer service team. All of the company's operations, from customer acquisition through collections, are structured to build customer satisfaction and loyalty, in the event that a customer has a need for its products in the future. The company has developed a series of sophisticated proprietary scoring models to support its various products.
Products and Services
The company's online financing products and services provide customers with a deposit of funds to their bank account in exchange for a commitment to repay the amount deposited plus fees and/or interest. The company originates, arranges, guarantees, or purchases installment loans and line of credit accounts to consumers and small businesses. The company has one reportable segment that includes all of its online financial services. The company's loans and finance receivables generally have regular payments that amortize principal. Interest income is generally recognized on an effective, non-accelerated yield basis over the contractual term of the installment loan or estimated outstanding period of the draw on line of credit accounts.
Consumer Installment Loans: Certain subsidiaries directly offer installment loans, as part of the company's Bank Programs, purchase, or purchase a participating interest in, installment loans or as part of its CSO program, arrange and guarantee installment loans to consumers. Certain subsidiaries offer, or arrange through the company's Bank Programs and CSO program, unsecured consumer installment loan products in 37 states in the United States. Internationally, the company also offers or arranges unsecured consumer installment loan products in Brazil. Effective in the third quarter of 2022, Enova no longer offers any single-pay products. Terms for the company's consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. The company's loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 86% for the year ended December 31, 2024. Loans may be repaid early at any time with no additional prepayment charges.
Small Business Installment Loans: Certain subsidiaries offer, or arrange through the company's Bank Programs, small business installment loans in 49 states and in Washington D.C. Terms for these products range between 3 and 24 months with an average contractual term of 14 months. The company's loans have regular payments that amortize principal. Loan sizes for these products range between $5,000 and $250,000. There is generally a fee paid upon origination, and total interest is typically calculated at a fixed rate for the life of the loan. A portion of the interest is forgivable if prepaid early, although the company also offers a full prepayment forgiveness option at a higher interest rate. The average annualized yield for these products was 46% for the year ended December 31, 2024.
Consumer Line of Credit Accounts: Certain subsidiaries directly offer, or purchase participation interests in receivables through the company's Bank Programs, new consumer line of credit accounts in 31 states (and continue to service existing line of credit accounts in two additional states) in the United States. Line of credit accounts allow customers to draw on their unsecured line of credit in increments of their choosing up to their credit limit, which ranges between $100 and $7,000. Customers may pay off their account balance in full at any time or make required minimum payments in accordance with the terms of the line of credit account. The repayment period varies depending upon certain factors, which may include outstanding principal and differences in minimum payment calculations by product. Customers are typically charged a fee when funds are drawn and subsequently incur fee- or interest-based charges at a fixed rate, depending upon the product and the state in which the customer resides. The average annualized yield for these products was 159% for the year ended December 31, 2024.
Small Business Line of Credit Accounts: Certain subsidiaries offer, or arrange through the company's Bank Programs, small business line of credit accounts in 49 states and in Washington D.C. in the United States. Terms for these products range between 12 and 24 months with regular payments that amortize principal. Loan sizes for these products range between $5,000 and $150,000. Interest is calculated at a fixed rate based on the outstanding balance. There is generally no fee paid upon origination with the exception of one of the company’s small business line of credit products, which has an origination fee when allowed by state law. The average annualized yield for these products was 47% for the year ended December 31, 2024.
CSO Program: The company operates a credit services organization or credit access business (CSO) program in Texas. Through its CSO program, the company provides services related to a third-party lender's installment consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws. Services offered under the company's CSO program include credit-related services, such as arranging loans with an independent third-party lender and assisting in the preparation of loan applications and loan documents (CSO loans). When a consumer executes an agreement with the company under its CSO program, it agrees, for a fee payable to it by the consumer, to provide certain services, one of which is to guarantee the consumer's obligation to repay the loan received by the consumer from the third-party lender if the consumer fails to do so. For CSO loans, the lender is responsible for providing the criteria by which the consumer's application is underwritten and, if approved, determining the amount of the consumer loan.
Bank Programs: Certain subsidiaries operate programs with certain banks (Bank Programs) to provide marketing services and loan servicing for certain installment loans and line of credit accounts. The Bank Programs that relate to the consumer portfolio in the United States include near-prime unsecured installment loans and line of credit accounts for which the company's subsidiaries receive marketing and servicing fees. The bank has the ability to sell, and the participating subsidiaries have the option, but not the requirement, to purchase the loans or a participating interest in receivables the bank originates. In conjunction with the company’s Brazilian business, it also have a Bank Program with a separate bank in Brazil whereby the bank has the authority to originate loans and collect a service fee. After origination, the loans are purchased by the company. The Bank Program that relates to the small business portfolio is with a separate bank and includes installment loans and line of credit accounts. The company receives marketing fees while the bank receives origination fees and certain program fees. The bank has the ability to sell, and it has the option, but not the requirement, to purchase the installment loans the bank originates and, in the case of line of credit accounts, extensions under those line of credit accounts. As of December 31, 2024, the company operated programs with five separate bank partners.
Money Transfer Business. Under the company’s Pangea brand, it operates a money transfer platform that allows customers to send money from the United States to Mexico, other Latin American countries and Asia. The customer pays to the company in the U.S. dollars, and it then makes local currency available to the intended recipient of the transfer in one of many termination countries. The company’s revenue model includes a fee per transfer and an exchange rate spread. The company’s customers can access its proprietary platform via the website, Android app, or iOS (Apple) app.
Markets
The company provides its services in the following countries:
The United States: The company began its online business in the United States in May 2004. As of December 31, 2024, the company provided services in all 50 states and Washington D.C. The company markets its financing products under the names CashNetUSA at www.cashnetusa.com, NetCredit at www.netcredit.com, OnDeck at www.ondeck.com and Headway Capital at www.headwaycapital.com. The company markets its money transfer platform under the name Pangea at www.pangeamoneytransfer.com. The United States represented 98.0% of the company’s total revenue in 2024.
Brazil: In June 2014, the company launched its business in Brazil under the name Simplic at www.simplic.com.br, where it arranges unsecured consumer installment loans for a third-party lender. The company plans to continue to invest in and expand its financial services program in Brazil. Brazil represented 1.9% of total revenue in 2024.
Customers
The company's non-prime consumer base is consisted largely of individuals who earn an average annual income of $39,000 in the United States. The company's small business customers have median annual sales of approximately $599 thousand.
Growth Strategy
The key elements of the company's strategy are to increase penetration in existing markets through strong brands and direct marketing; and introduce new products and services.
Online Financing Process
The company's consumer and small business financing transactions are conducted almost exclusively online. When a customer is approved for a new loan, nearly all customers choose to have funds promptly deposited in their bank account and choose to use a pre-authorized debit for repayment from their bank account or debit card.
Technology Platforms
The company's proprietary technology platforms are built for scalability and flexibility and are based on proven open-source software. The technology platforms were designed to be powerful enough to handle the large volumes of data required to evaluate consumer and small business applications and flexible enough to capitalize on changing customer preferences, market trends and regulatory changes. The scalability and flexibility of the company's technology platforms allow it to enter new markets and launch new products quickly, typically within three to six months from conception to launch.
The company continually employs technological innovations to improve its technology platforms, which perform a variety of integrated and core functions, including:
Front-end system, which includes external websites, landing pages and mobile sites and applications that customers use when applying for loans or financing and managing their accounts;
Back-end and customer relationship management (CRM) systems, which maintain customer-level data and are used by the company's contact center employees to provide real-time information for all inquiries. The company's back-end system and CRM systems include, among other things, its contact management system, operational and marketing management system, automated phone system, Interactive Voice Response and contact center performance management system;
Decision engine, which leverages machine learning and artificial intelligence to rapidly evaluate and make credit and financing decisions throughout the customer relationship; and
Financial system, which manages the external interface for funds transfers and provides daily accounting, reconciliation and reporting functions.
The key elements of the company's technology platforms include:
Scalable Information Technology infrastructure: The company's Information Technology infrastructure allows it to meet customer demand and accommodate business growth. The company's services rely on accessing, evaluating and creating large volumes of data, including for example, information collected from over 74 million credit reports during 2024. This rich dataset has grown significantly over the company's more than 20-year history and will continue to grow as its business expands. The company's scalable IT infrastructure enables it to meet substantial growth demands.
Flexible Software and Integration Systems: The company's software system is designed to allow it to enter new markets and launch new products rapidly, modify its business operations quickly and account for complex regulatory requirements imposed in the jurisdictions in which it operates. The company has developed a proprietary software solution that allows it to innovate quickly and to improve the customer experience. The company's integration system allows it to easily interface with banks and other strategic partners in order to deliver the best financial products and services possible. The company's software and integration systems and their flexibility allow it much more control over the continually evolving aspects of its business.
Rapid Development Processes: The company's software development life cycle is rapid and iterative to increase the efficiency of its platform. The company is able to implement software updates while maintaining its system stability.
Security: The company collects and stores personally identifiable customer information, including names, addresses, social security numbers and bank account information. The company has safeguards designed to protect this information. The company also created controls to limit employee access to that information and to monitor that access. The company's safeguards and controls have been independently verified through regular and recurring audits and assessments.
Redundant Disaster Recovery: Certain key parts of the company's technology platform, such as its phone system for handling customer service on consumer loans, are distributed across two different locations. In addition, critical components of its platform are redundant. This provides redundancy, fault tolerance and disaster recovery functionality in case of a catastrophic outage.
Proprietary Data and Analytics
Decision Engine
The company has developed a fully integrated decision engine that evaluates and rapidly makes credit and other determinations throughout the customer relationship, including automated decisions regarding marketing, fraud, underwriting, customer contact and collections that leverage artificial intelligence and machine learning-enabled models. The company's decision engine handles more than 100 algorithms and over 1,000 variables. The algorithms in use are constantly monitored, validated, updated and optimized to continuously improve the company's operations. In order to support the daily running and ongoing improvement of its decision engine, the company had assembled a highly skilled team of nearly 90 data and analytics professionals as of December 31, 2024.
Proprietary Data, Models and Underwriting
The company's proprietary models are built on more than 20 years of history, using advanced statistical methods that take into account it experiences with the millions of transactions it has processed during that time and the use of data from numerous third-party sources. The company continually updates its machine learning-enabled underwriting models to manage risk of defaults and to structure loan and financing terms. The company's system completes these assessments within seconds of receiving the customer's data.
The company's underwriting system is able to assess risks associated with each customer individually based on specific customer information and historical trends in its portfolio. The company uses a combination of numerous factors when evaluating a potential consumer loan applicant, which may include a consumer’s income, rent or mortgage payment amount, employment history, external credit reporting agency scores, amount and status of outstanding debt and other recurring expenditures, fraud reports, repayment history, charge-off history and the length of time the customer has lived at his or her current address. While the relative weight or importance of the specific variables that the company considers when underwriting a loan changes from product to product, generally, the key factors that it considers for loans include monthly gross income, disposable income, length of employment, duration of residency, credit report history and prior loan performance history if the applicant is a returning customer. Similar factors are considered for small business loan applicants and also include length of time in business, online business reviews, and sales volumes. The company's customer base for consumer loans is predominantly in the low to fair range of FICO scores, with scores generally between 500 and 680 for most of its loan products. A Vantage-Score is one of the factors in the company's credit models for its near-prime loan products in the United States. Since the company designed its system specifically for its specialized products, the company's system provides more predictive assessments of future payment behavior and results in better evaluation of its customer base when compared to traditional credit assessments, such as a FICO score. In the small business space, the company utilizes the OnDeck Score in its decision models, which incorporates small business credit scores from various commercial credit bureaus, the cash flow data of the small business and the personal credit attributes of the business’ owner(s).
Fraud Prevention
The company's fraud prevention system is built from in-depth analysis of previous fraud incidences and information from third-party data sources. To ensure sustainable growth, the company’s fraud prevention team has built systems and processes that leverage artificial intelligence and machine learning-enabled models to detect fraud trends, identify fraudulent applications and learn from past fraudulent cases.
Working together with multiple vendors, the company's systems first determine whether customer information submitted matches other indicators regarding the application and that the applicant can authorize transactions for the submitted bank account. To prevent more organized and systematic fraud, the company has developed predictive models that incorporate signals from various sources that the company has found to be useful in identifying fraud. These models utilize advanced data mining algorithms, machine learning-enabled algorithms and artificial intelligence to effectively identify fraudulent applications with a very low false positive rate. In addition, the company has built strong loan processing teams that handle suspicious activities efficiently while minimizing friction in customer experience. The company's fraud prevention system incorporates algorithms to differentiate customers in an effort to identify suspected fraudulent activity and to reduce its risks of loss from fraud.
The company continuously develops and implements ongoing improvements to these systems and, while no system can completely protect against losses from fraud, its systems provide protection against significant fraud losses.
Marketing
The company uses a multi-channel approach to marketing its online loans and financing products, with both broad-reach and highly targeted channels, including television, digital, direct mail, telemarketing and partner marketing (which includes lead providers, independent brokers and marketing affiliates). The company's marketing has successfully built strong awareness of and preference for its brands, as its products have achieved market leadership through the following:
Traditional Advertising: The company uses television, direct mail and radio advertisements, supported by technology infrastructure and key vendors, to drive and optimize website traffic and loan volume. The company's investments through these channels have helped create strong brand awareness and preference in the customer segments and markets it serves.
Digital Acquisition: The company's online marketing efforts include pay-per-click, keyword advertising, search engine optimization, marketing affiliate partnerships, social media programs and mobile advertising integrated with its operating systems and technology from vendors that allow it to optimize customer acquisition tactics within the daily operations cycle.
Partner Marketing: The company purchases qualified leads for prospective new customers from a number of online lead providers and independent brokers and through marketing affiliate partnerships. The company's rapid decision making on lead purchases, strong customer conversion rate and significant scale in each of its markets make it a preferred partner for lead providers, brokers and affiliates while at the same time its technology and analytics help it determine the right price for the right leads.
User Experience and Conversion: The company measures and monitors website visitor usage metrics and regularly test website design strategies to improve customer experience and conversion rates.
Customer Service
To best serve its consumers and small businesses, the company uses customer-oriented business practices, such as offering extended-hours customer service. The company continuously works to improve its customers' experience and satisfaction by evaluating information from website analytics, customer satisfaction surveys, contact center feedback, call monitoring and focus groups. The company's contact center teams receive training on a regular basis, are monitored by quality assurance managers and adhere to rigorous internal service-level agreements.
Collections
The company operates consumer and small business-specific collection teams that have implemented loan and financing collection policies and practices designed to optimize regulatory compliant loan and financing repayment, while also providing excellent customer service. The company's collections employees are trained to help the customer understand available payment alternatives and make arrangements to repay the loan or financing. The company uses a variety of collection strategies to satisfy a delinquent loan or finance receivable, such as settlements and payment plans, or to adjust the delivery of finance receivables. Employees are continually trained and coached towards improvement based on quality assurance and work effort audits resulting in continued success in presenting best available payment options to the customer while limiting complaints and dissatisfaction.
Contact center employees contact customers following the first missed payment and periodically thereafter. The company's primary methods of contacting past due customers are through phone calls, letters and emails. At times, the company sells loans that it is unable to collect to debt collection companies or place the debt for collection with debt collection companies.
Competition
Storefront consumer loan lenders that offer loans online or in storefronts are a source of competition in some of the markets where the company offers consumer loans, including Ace Cash Express, Check Into Cash, Check ‘n Go and One Main Financial.
Intellectual Property
The company has several registered trademarks, including NetCredit, CashNetUSA, and its ‘e’ logo. OnDeck also has registered trademarks in the United States, including ‘OnDeck,’ ‘OnDeck Score’, and the OnDeck logo.
Seasonality
Demand for the company's consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year (year ended December 2024), corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to its customers' receipt of income tax refunds. Demand for the company's small business loan products and services in the United States has historically been highest in the fourth quarter and early first quarter of each year, corresponding generally to holiday and post-holiday season needs, and lowest at the end of the first quarter and beginning of the second quarter of each year, where its customers' businesses are generally slower. Consequently, the company experiences seasonal fluctuations in its domestic operating results and cash needs.
Regulation
The company's consumer loan business is subject to the federal Truth in Lending Act (TILA), and its underlying regulations, known as Regulation Z, and the Fair Credit Reporting Act (FCRA). These laws require the company to provide certain disclosures to prospective borrowers and protect against unfair credit practices. The principal disclosures required under TILA are intended to promote the informed use of consumer credit. Under TILA, when acting as a lender, the company is required to disclose certain material terms related to a credit transaction, including but not limited to, the annual percentage rate, finance charge, amount financed, total of payments, the number and amount of payments and payment due dates to repay the indebtedness. The FCRA regulates the collection, dissemination and use of consumer information, including consumer credit information. The federal Equal Credit Opportunity Act (ECOA) prohibits the company from discriminating against any credit applicant on the basis of any protected category, such as race, color, religion, national origin, sex, marital status or age, and requires it to notify credit applicants of any action taken on the individual's credit application.
The company is also subject to the federal Fair and Accurate Credit Transactions Act, which limits the sharing of information with affiliates for marketing purposes and requires it to adopt written guidance and procedures for detecting, preventing and responding appropriately to mitigate identity theft and to adopt various policies and procedures and provide training and materials that address the importance of protecting non-public personal information and aid it in detecting and responding to suspicious activity, including suspicious activity that may suggest a possible identity theft red flag, as appropriate.
The company's advertising and marketing activities are subject to several federal laws and regulations, including the Federal Trade Commission Act (the FTC Act), which prohibits unfair or deceptive acts or practices and false or misleading advertisements in all aspects of its business. As a financial services company, any advertisements related to the company's products must also comply with the advertising requirements set forth in TILA. Also, any of its telephone marketing activities must comply with the Telephone Consumer Protection Act (the TCPA) and the Telemarketing Sales Rule (the TSR). The company's advertising and marketing activities are also subject to the CAN-SPAM Act of 2003, which establishes certain requirements for commercial email messages and specifies penalties for the transmission of commercial email messages that are intended to deceive the recipient as to the source of content.
The consumer loan business is also subject to the federal Electronic Funds Transfer Act (EFTA), and various other laws, rules and guidelines relating to the procedures and disclosures required in debiting or crediting a debtor's bank account relating to a consumer loan (i.e., Automated Clearing House (ACH) funds transfer). Furthermore, the company is subject to various state and federal e-signature rules mandating that certain disclosures be made and certain steps be followed in order to obtain and authenticate e-signatures.
The company uses the Fair Debt Collection Practices Act (FDCPA) as a guide in connection with operating its other collection activities. The company is also required to comply with all applicable state collection practices laws.
Under the federal Gramm-Leach-Bliley Act (GLBA), the company must disclose to individuals its privacy policy and practices, including those policies relating to the sharing of individuals' nonpublic personal information with third parties. The GLBA also requires the company to ensure that its systems are designed to protect the confidentiality of individuals' nonpublic personal information and dictates certain actions that it must take to notify individuals if their personal information is disclosed in an unauthorized manner.
The company is subject to certain provisions of the USA PATRIOT Act and the Bank Secrecy Act under which it must maintain an anti-money laundering compliance program covering certain of its business activities. In addition, the Office of Foreign Assets Control (OFAC) prohibits the company from engaging in financial transactions with specially designated nationals.
The company is subject to the U.S. Foreign Corrupt Practices Act (the FCPA), which generally prohibits companies and their agents or intermediaries from making improper payments to foreign officials for the purpose of obtaining or keeping business and/or other benefits.
In Texas, where the company offers its CSO program, it complies with the jurisdiction's Credit Services Organization Act and related regulations.
History
Enova International, Inc. was founded in 2003. The company was incorporated in 2011.
