Customer Base Has Doubled in Size Each Month Since Company Inception;
Digital Bank Now Opening More Than 5,000 New Customer Accounts Per Month
SAN FRANCISCO – May 7, 2019 – Oxygen, a new digital banking platform offering free banking services and flat-fee credit lines to freelancers, today announced observations gleaned from an internal data analysis, which is helping guide Oxygen’s business strategy while also offering interesting insights into the growing gig economy.
“Routine analysis of our data allows us to take a proactive approach to better understanding our customers’ financial needs. This also enables us to tailor our products based on those needs and, when necessary, scale up to satisfy increased demand,” says Hussein Ahmed, CEO and Founder of Oxygen. “Additionally, this analysis delivers a compelling glimpse into typical gig economy workers’ characteristics, which can help long-established industries and companies across numerous markets re-align to better serve this expanding demographic.”
Oxygen has found the following trends, and is using them to build and guide its future strategy:
- Oxygen’s user base has doubled sequentially every month since the company initiated operations in September 2018. Currently, the company is opening more than 5,000 new customer accounts per month.
- Oxygen began with $10 million in loan assets; the company loaned $2 million in 6 months alone and is currently putting plans in place to add on more lending facilities to match the demand.
- Oxygen originates approximately 1,000 loans per month and has plans to start segmenting customers based on credit ratings, in order to deliver more targeted service offerings based on individual customers’ unique financial circumstances while pricing the risk and return profile of the investment for lenders.
Other insights distilled include:
- The annual income of Oxygen’s customer base ranges from $25,000 to $150,000, with the majority of customers making approximately $50,000 per year.
- Customers in the lower income range tend to take out smaller loans (around $1,500) and pay these loans back quickly (within weeks), while those with higher incomes tend to borrow larger amounts ($3,500 or more) and pay these back over longer periods of 3 to 6 months. The average customer loan amount is $1,500.
- Oxygen’s customer base is approximately 71 percent men and 29 percent women. Ages 25-34 represents the largest category of customers, followed by ages 35-44 and 18-24 (in this order). The number of customers drops in the 45-54 age group, and does so even more markedly in the 55-64 and 65 and over age groups.
Y Combinator-backed Oxygen announced its first close for $2.3 million in funding late January raising a total of $4.5 million for the Seed round. In addition to offering free banking services and instant credit, Oxygen tracks freelancers’ bills and projects their income – a unique service combination that no other bank or lender offers. Oxygen’s service is accessible through its mobile banking app which is available in both iOS and Android versions.
Oxygen is a digital bank that caters to the freelancers and self-employed of the gig economy. That new shift of workers makes more than $1.4 trillion in 1099 income annually, but has been locked out of lending services because of its volatile income and a lack of permanent employment. Oxygen offers free checking accounts, debit cards and fair credit lines to make banking easier in the age of the gig economy. In order to do that Oxygen has developed unique AI models that track bills, project income, assess risk and offer instant credit when needed. For more information please visit https://getoxygen.com