(And no, we’re not launching a credit card. But it just got easier to create and market one.)

AI and No-Code: Why Niche Lending is the Next Big Thing

OpenAI’s GPT‑4o Just Changed How Marketers Create Visuals

Imagine launching your own financial product as effortlessly as you spin up a WordPress blog. Tim Li, founder of LendAPI, recently joined our podcast and described exactly this: building a no-code "WordPress for lending." His platform lets anyone, regardless of technical expertise, launch niche financial products almost instantly.

Forget Studio Ghibli, we're here for something else. OpenAI’s GPT‑4o now lets anyone generate high-quality images directly inside the chat. No separate tools needed. Just type a description, and you get an image with real text, accurate branding, and visual polish. It's fast, detailed, and incredibly useful for marketing.

Unlike older tools (like Midjourney or DALL·E), GPT‑4o can generate ads, logos, mockups, and product visuals that follow complex prompts—and include legible, on-brand copy. Need a flyer with your slogan? A packaging mockup? An Instagram post with your product staged perfectly? Just ask.

This isn’t just better AI—it’s a new creative workflow. You can iterate visually in conversation: “make the background blue,” “add a price tag,” “use our font.” The model remembers your context and refines fast. For marketers, that means faster A/B testing, easier ideation, and polished drafts—without waiting on designers.

It’s also a game-changer for small teams: a social media manager can now produce campaign-ready content solo. But with easy content comes saturation. Success will come from smart prompts, strong ideas, and fast execution.

Combined with infrastructure like LendAPI, these advancements drastically lower the barriers to launching hyper-niche lending products. Marketplaces like Credit Karma and Experian can already precisely match products to individual consumers. Niche offerings become not just viable—they become strategically superior.

Today, Credit Karma lists about 331 credit cards for over 130 million users. This limited selection means products still serve overly broad segments. But imagine thousands of hyper-specific products: cards tailored for single parents, retirees visiting grandchildren, or international students.

This isn't speculation—it's inevitable. Fintech platforms like LendAPI combined with AI-driven creative tools like GPT-4o mean anyone can rapidly ideate, test, and scale hyper-personalized financial products. The platforms that perfect personalized matching will dominate consumer attention, fundamentally disrupting traditional, mass-market lending.

Now is the time to seize this opportunity. The barriers have never been lower, the tools never more accessible, and the distribution networks never more precise. Hyper-niche lending isn't just possible—it's the future of financial services.

Bottom line: GPT‑4o makes image creation as accessible as writing. Business leaders should start experimenting now—it’s not just a tool, it’s a competitive edge.

If you're not already building niche, now's the moment to start.

[Introducing 4o Image Generation - OpenAI]
[No elephants: Breakthroughs in image generation - Ethan Mollick]
[The case for building hyper-niche lending products - Toaster]

Be sure to subscribe to stay informed. It’s free!

We couldn’t produce this newsletter without our sponsor (and friends) at Spinwheel (a QED-backed fintech)

Reduce friction in your lending application with only two required fields: phone number and birthdate! Seamlessly access real-time credit data and payment processing, and watch your application rates jump by 20-30%. Get started today!

Cash Advance Company Cleo AI Agrees to Pay $17 Million As Result of FTC Lawsuit Charging It Deceives Consumers

Cleo AI, an online cash advance platform, agreed to cough up $17 million to settle an FTC lawsuit accusing it of seriously misleading consumers. The FTC claims Cleo promised “hundreds of dollars” in fast cash but delivered far less, often with surprise fees and delays—and made canceling subscriptions a nightmare. The deal forces Cleo to come clean about fees, get clear consent for charges, and offer a straightforward cancel button (finally). Refunds are headed to consumers burned by the “fast cash” mirage. [FTC]

Affirm adds extra tech partner to supplement embattled Evolve

Affirm added Stride Bank as a second card-issuing partner for its fast-growing debit card, as current partner Evolve Bank & Trust battles fallout from the Synapse debacle. Active consumers on the Affirm Card more than doubled year-over-year to 1.7 million as of Q4 2024, while direct-to-consumer gross merchandise volume surged 113% to $845 million. Affirm is betting big on the card, which unlocks spend in physical retail—territory BNPL doesn’t usually reach. Diversifying partners also helps Affirm dodge debit interchange caps tied to banks with over $10 billion in assets. [American Banker]

Why fintech-heavy Grasshopper bought a small Michigan bank

Grasshopper Bank, the fintech-friendly, all-digital bank, just closed its acquisition of Auto Club Trust, a small Michigan bank, to beef up deposits and tap into 13 million AAA members across 14 states. The deal adds $400 million in assets, bumps Grasshopper's total to $1.4 billion, and brings along an insurance affiliate too. Grasshopper, which partners with about 20 fintechs, sees the AAA base as a steady funding source—especially crucial in this high-rate, high-competition deposit market. Oh, and they raised $34 million in fresh equity to seal the deal. [American Banker]

Instant Financial Expands Beyond Early Pay with New Financial Wellness Program

Instant Financial, the Alpharetta-based fintech known for early wage access, just rolled out a new Financial Wellness program packed with tools to help hourly workers build long-term stability. The platform now offers credit-building (via Engine by MoneyLion), rent payment reporting, financial education, high-yield savings, and discounted healthcare—all based on “consistent feedback” from users. Credit Builder products report on-time payments to major bureaus, no credit score required. With 64% of Americans living paycheck to paycheck, Instant’s aiming to do more than bridge pay gaps—it’s tackling the system head-on. [Hypepotamus]

U.S. Bank Personal Loans Now Available Through State Farm

U.S. Bank just deepened its partnership with State Farm, making personal loans of up to $50,000 available directly through State Farm agents in all 50 states. The move expands on an alliance that already serves over 900,000 State Farm customers with deposit products, co-branded credit cards, and business banking tools. For U.S. Bank, it’s a strategic play to reach new borrowers through a trusted local network—while State Farm agents get another tool to help customers tackle everything from home renovations to debt consolidation. [U.S. Bank]

Death by a thousand caps: State laws could kill credit card rewards

A growing wave of state bills aimed at capping credit card interchange fees could spell the end of beloved rewards programs, warns Patrick M. Brenner of the Southwest Public Policy Institute. At least 19 states and D.C. are advancing similar legislation, raising alarms about a possible illegal interstate compact and the unintended fallout—think fewer rewards, higher account fees, and tighter credit. Brenner argues these patchwork price controls could violate federal commerce laws and hurt the very consumers they claim to help, especially those with lower incomes. [American Banker]

Subscribe today to ensure you don’t miss exclusive content like our interview with Rich. It’s free!