The US-based platform popular with wealthy graduates is forging a tie up with Promontory Interfinancial Network,
SoFi will sell some of its loan book off to US community banks allowing them to purchase “super-prime” student loans originated by the firm thanks to a “streamlining” of its due diligence process. Promontory Interfinancial Network is the first community bank to benefit from the policy.
"We are always looking for new product and service opportunities to meet the needs of the thousands of banks that are Promontory Network members, and we are excited about this strategic alliance with SoFi," said Mark Jacobsen, President and chief executive officer of Promontory Interfinancial Network.
Research was undertaken by the Promontory Interfinancial Network into SoFi's current loan origination and post-origination practices. This the firm says, gives sufficient oversight to controls that SoFi has in place, including those that promote regulatory compliance, consumer privacy, and information security.
"Promontory Financial Group did the work to simplify the due diligence process for banks, adding levels of review individual institutions could not perform on their own," Jacobsen continued. "As a leading risk management and bank regulatory compliance consulting firm, Promontory Financial Group's expertise is unsurpassed."
SoFi President and Chief Financial Officer Nino Fanlo said, "This unique partnership opens us up to a new group of bank investors and further diversifies our funding sources. Large banks have been buyers of our loans for several years, but this program will help small to mid-sized banks participate in the growth of this asset class, and we look forward to building relationships with them.
To date, SoFi has received more than $1.4bn in funding, including a 2015 $1bn Series E led by SoftBank, and SoFi's customers now number more than 230,000. The company has over 800 employees.