The Bank Slate


Affirm relying less on Cross River for loan originations

Affirm Holdings in San Francisco has reduced its reliance on Cross River Bank in Teaneck, N.J., to originate loans.

The fintech, which focuses on Buy Now, Pay Later products, disclosed in its quarterly filing that, as of Jan. 31, most of the loans originated through its platform are being handled by Celtic Bank in Salt Lake City.

Affirm said the decision was made in January as part of a broader effort to identify and engage new originating bank partners. The goal of working with other lenders is “to diversify our sources of loan originations,” the filing said.

The company said it is continuing to evaluate new bank partners, though it said the process is “inherently uncertain” and there is no guarantee that it will bring anyone onto its platform.

Affirm, which lost $322 million in its fiscal second quarter, also disclosed that it cut about 19% of its workforce, or roughly 500 jobs. The company said it is reevaluating its need for leased office space and plans to fully vacate a portion of its San Francisco office.

The moves should be completed by mid-2023.

Affirm said it expects to incur $35 million to $39 million in restructuring costs, including $24 million to $28 million tied to the layoffs and $11 million associated with its partial office closure.

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