SoFi to start offering automatic loan refinancing
TThe online lender SoFi, which goes public through Chamath Palihapitiya’s blank check company Share capital Hedosophia Holdings Corp. V (NYSE: IPOE), will soon allow members to refinance car loans on its platform.
Bloomberg announced today that SoFi plans to team up with start-up MotoRefi to make the offer possible. MotoRefi helps customers find affordable auto refinancing options through partnerships with community banks and credit unions.
“We constantly hear from our members about the products they would like us to offer them, and auto loans have been a constant demand,” said Jennifer Nuckles, executive vice president of SoFi, according to Bloomberg. “We also looked at our internal data and found that a large portion of our members have large auto loan balances and … could benefit from refinancing.”
Image source: Getty Images.
SoFi plans to essentially plug MotoRefi’s solution into its platform via an application programming interface (API). Then, for each referral, MotoRefi will pay a fee to SoFi, according to Forbes.
Auto refinancing is the latest product offered by SoFi in its growing list of consumer solutions.
The company already offers mortgages, student loans, personal loans and credit cards. The company also has an online brokerage that it is stepping up and last year bought fintech Galileo, a platform that helps other fintechs perform front-end and back-end functions.
SoFi also recently announced its intention to acquire the tiny Golden Pacific Bancorp in Sacramento to accelerate its goal of obtaining a banking charter, which will significantly streamline its operations.
The move to automatic refinancing certainly continues SoFi’s strategy of diversifying its lending operations and income streams in order to get the most out of the typical consumer who too often uses multiple banks for their financial needs.
10 stocks we like better than Social Capital Hedosophia Holdings Corp. V
When investment geniuses David and Tom Gardner have stock advice, he can pay to listen. After all, the newsletter they’ve been distributing for over a decade, Motley Fool Fellowship Advisor, has tripled the market. *
David and Tom just revealed what they think are the ten best stocks investors can buy right now … and Social Capital Hedosophia Holdings Corp. V was not one of them! That’s right – they think these 10 stocks are even better buys.
See the 10 actions
* Stock Advisor returns as of February 24, 2021
Bram Berkowitz has the following options: long July 2021 $ 17.5 calls on Social Capital Hedosophia Holdings Corp. V. The Motley Fool owns shares and recommends Social Capital Hedosophia Holdings Corp. V. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.