Today, we will tell you about SoFi loans. SoFi Announces $697 Million Loan Secularization. Let’s start:
SoFi announces it has completed the $697.6 million secularization of the loan platform’s business volume.
The deal, which the company announced on Monday (3 March), resulted from a “co-contributor securitization” with collateral consisting of loans that were previously arranged with business partners of the loan platform.
“As SoFi’s personal loan products resonate with more and more people, we see continued strong demand for our loans in the capital markets,” Chris Lapointe, SoFi’s Finance director, stated in a news announcement. “This offering demonstrates the clear value of our loan platform business and our diversified funding strategy.”
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The company reported it was a platform company, one that provides loans for third-party lenders and can generate $2.1 billion of personal loans in the year prior.
This is the initial securitization of a new collateral within SoFi’s Consumer Loan Program in 2021 and the first use of collateral that originated from the business of the loan platform.
“It provides co-contributors with meaningful liquidity to support their ongoing investment in the loan platform business given the strong market demand for SoFi’s loans,” the release said. “SoFi issued notes to 35 investors in the deal, representing a range of new and existing partners.”
In a related story, PYMNTS wrote about efforts by firms like SoFi to take advantage of the advancement of digital products and services such as cards that offer customers a different option to traditional banks.
“In doing so, and by offering a continuum of financial services,” the report noted, these companies “are moving beyond the confines of commerce to become, in essence, banks themselves.”
In its most recent earnings report, SoFi said its membership list with over 10 million members increased by 34% over the past year with deposits of $26 billion. This was mainly due to direct deposits.
SSoFi’sloans in 2024 were more than $23 billion, increasing 33% over 2023, with SoFi Money products gathering 51 percent year-over-year to reach 5 million. SoFi is also working on co-branded debit cards, which are expected to be launched in the first quarter of this year.
“Financial services accounted for more than eighty percent of overall product growth. This is due to the intentional shift of our company to more capital light fee-based revenue sources that we anticipate to continue into the year 2025,” declared the CEO, Anthony Noto. “It’s safe to say that SoFi is not just a lender anymore, and we continue to see significant growth opportunity across our financial services and technology platform segments.”
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