SoFi Announces $697 Million Loan Secularization

SoFi says it has closed a $697.6 million secularization of loan platform business volume.

This transaction, the company announced Monday (March 3), was a “co-contributor securitization” with collateral made up chiefly of loans previously placed with loan platform business partners.

“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 chief, said in a news release. “This offering demonstrates the clear value of our loan platform business and our diversified funding strategy.”

The company noted that its platform business, which originates loans on behalf of third parties, generated $2.1 billion in personal loan volume last year.

This marks the first first securitization of new collateral in SoFi’s Consumer Loan Program since 2021 and the first using collateral originated in the loan platform business.

“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 personal loans,” the news release added. “SoFi issued notes to 35 investors in the deal, representing a range of new and existing partners.”

In related news, PYMNTS wrote about efforts by companies like SoFi to capitalize on the ongoing development of digital solutions and products, including cards, to offer consumers an alternative to traditional banks.

“In doing so, and by offering a continuum of financial services,” that report said, these firms “are moving beyond the confines of commerce to become, in essence, banks themselves.”

In its latest earnings report, SoFi said its membership roster of more than 10 million individuals was up 34% year over year, with deposits reaching $26 billion, driven by direct deposit activity.

The company’s lending originations in 2024 exceeded $23 billion, up 33% from 2023, with SoFi Money products gathering 51% year over year to 5 million. SoFi is also in the midst of a co-branded debit card program, expected to launch during the first half of this year.

“Financial services products drove over 89% of our total product growth. This reflects the deliberate diversification of our business towards more capital light fee based revenue sources, which we expect to continue in 2025,” said 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.”