As we close out 2025 and look ahead to a pivotal year in lending, I’d like to share a few reflections on what we’ve built together and what’s coming next. 

This past year made something clear: clarity wins. Across many of our lender conversations, we heard a consistent concern. Too many pricing options and inconsistent merchant discount rates were making it harder for their sales teams to confidently position financing. So, we simplified. 

Together with several partners, we introduced a flat merchant discount program that gives lenders the flexibility to price for risk while keeping merchant discounts predictable. When paired with our free program option, merchants finally had a clean, consistent structure that was easier to communicate, easier to account for, and ultimately easier to sell. 

The result: higher uptake, smoother operations, and a financing experience that works better for everyone involved. 

At the same time, we watched consumer behavior shift in ways that created opportunity. Even as mortgage and auto originations slowed and traditional unsecured credit softened, homeowners continued to invest in their properties by leveraging strong financing rates while preserving cash. Home improvement lending proved resilient, and for many depository institutions, it is becoming one of the most compelling asset classes heading into 2026. 

We also saw the broader lending environment continue to evolve. 

  • Embedded finance expanded into new verticals, helping credit unions reach borrowers outside of their traditional retail and dealer networks. 
  • Regulators increased their focus on data privacy and vendor risk, reinforcing the importance of strong, transparent partnerships. 
  • Member analytics became more powerful, giving lenders new ways to deepen engagement and cross-sell services, especially when borrowers know exactly who is financing their project. 
  • With lower- and middle-income credit profiles softening, homeowners remained a stable, high-performing segment due to predictable returns on renovations like kitchens, baths, and outdoor spaces. 

Looking ahead, 2026 will reward lenders who lean into clarity, operational simplicity, and strategically chosen asset classes. Consumers want strong rates and straightforward experiences. Lenders want predictability. Merchants want consistency. Our job, and our commitment, is to help and deliver all three. 

Thank you to our customers, partners, and the entire LoanStar team for your trust and collaboration throughout 2025. We are energized for the year ahead and ready to support continued growth for our lenders, merchants and partners. 

Best regards, 
Andrew Turner 
CEO, LoanStar Technologies