Origence’s FI Connect Expands into Home Improvement Lending
Event summary
- FI Connect, a subsidiary of Origence, has expanded its embedded financing program to include home improvement lending.
- The new channel allows credit unions to access home renovation loan opportunities through contractor networks.
- FI Connect manages operational, compliance, and technology complexities, enabling credit unions to scale without building infrastructure.
- The U.S. home improvement market is projected to surpass $400 billion by 2033, with banks and credit unions financing over $2.1 billion in swimming pool projects in 2023.
The big picture
The expansion into home improvement lending aligns with the broader trend of embedded financing, where lending decisions are increasingly made outside traditional banking channels. Origence’s strategy positions credit unions to capture a larger share of the high-demand home improvement market, which is projected to grow significantly over the next decade. This move also reflects the shift towards digital, streamlined lending experiences that cater to modern consumer preferences.
What we're watching
- Market Penetration
- How FI Connect will capture market share in the growing home improvement lending space.
- Credit Union Adoption
- Whether credit unions will widely adopt FI Connect’s home improvement lending channel.
- Loan Performance
- The impact of direct disbursement to contractors on loan performance and default rates.
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