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How to create a texture, as well as a bump map on the fly based on the text we've got from a player?

I need to engrave player name on an asset at runtime. I’ve figured out how to add a texture at runtime on another texture using decals, move and scale it, but only when the texture is predefined.
How can I create a texture from the text entered by a player? Is there some built in functionality? Or should I render it for example using freetype library and then assign the texture to my material?