We learned yesterday that marketplace platform SoFi had smashed through the $4bn milestone in terms of cumulative lending to date. The platform’s loans have been spread across student debt refinancing (the field in which it made its name), personal loans and mortgages. All of SoFi’s products cater to young professionals, with generally high earnings potential. The calibre of these borrowers is such that the platform recently pieced together the world’s first marketplace lending fuelled triple AAA rated securitisation.
In tandem with passing the $4bn mark, SoFi is welcoming on board Arthur Levitt – the longest-serving chairman of the US Securities and Exchange Commission (SEC) – as an advisor. Levitt will be tasked with providing SoFi’s executive management team with strategic counsel, as the platform attempts to become the go-to financial services provider for its young community of members.
SoFi CEO and Co-Founder Mike Cagney commented on the appointment:
"During his storied career with the SEC, Arthur was a compassionate regulator on the forefront of initiatives that educate, empower and protect America's investors. We share similar philosophies about transparency, trust and doing what's right for consumers. As we reach four billion dollars in funded loans -- an important milestone – I'm humbled and honored that Arthur is joining us in an advisory role. We're confident that his experience will benefit SoFi and the marketplace lending industry overall as we navigate an increasingly complex regulatory environment."
SoFi launched almost four years ago, but the growth story over the past year in particular has been nothing short of remarkable. The platform raised $200m in equity capital in February 2015. By April, a grand total of $2bn had been lent through the platform. SoFi then reportedly raised a staggering $1bn in equity in late August. And now we learn that the $4bn mark has been topped – meaning the platform’s volumes have doubled in just four months.
The platform’s stated goal is to surpass $5bn by the year’s end. At the current rate of growth, that may end up looking rather conservative.
