Figure Technology Solutions (FIGR) investor relations material

Strategic vision and business model

• Building a blockchain-based capital markets platform, enabling rapid, low-cost origination and trading of tokenized loans, initially focused on mortgages but expanding to broader credit and equities.

• Marketplace model integrates origination technology and capital markets, offering attractive margins and a capital-light profile.

• Over 250 partners, including banks, credit unions, and fintechs, use the platform, with origination costs at $1,000 and five-day processing, compared to industry averages of $12,000 and 45 days.

• Monthly originations average $1 billion, with ambitions to capture a larger share of the $2 trillion annual mortgage market and expand into other asset classes.

• Focused on execution and clarity post-IPO, with ongoing engagement to align with investor feedback.

Strategic priorities and product innovation

• Top priorities: expand in mortgages (especially HELOCs), diversify into new loan products (DSCR, fix-and-flip), and grow blockchain-based offerings (YLDS stablecoin, Democratized Prime marketplace).

• HELOC product targets $35 trillion in home equity, with 20% now first lien, supporting uses from home improvement to small business funding.

• Launched new features, such as Solana integration for lending, and expanded use cases for tokenized loans.

• Emphasis on liquidity and utility, not just tokenization, with $20 billion in mortgage activity and $70 billion in transactions.

• Standardized technology across partners lowers costs and increases ROI on tech investment.

Partner ecosystem and market expansion

• Added 78 new originating partners in Q3, more than in previous years, driven by unlocking SMB use cases and broadening product appeal.

• Diverse partner base includes fintechs, non-banks, regional banks, and credit unions, with early penetration among 10,000+ potential depositories.

• Cost advantage in origination is especially attractive to banks and credit unions, enabling profitable lower-balance mortgages.

• First lien HELOCs allow payoff of existing mortgages, offering speed, transparency, and lower costs compared to traditional processes.

• Average loan balance increased from $65,000 to $100,000 since April 2024, with growing share in first lien and higher-balance mortgages.