SoFi to start offering automatic loan refinancing
The online lender SoFi, which is made public through the Chamath Palihapitiya 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 partner 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.
âWe constantly hear from our members what products they would like us to offer, and auto loans have been in constant demand,â 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 andâ¦ could benefit from refinancing.”
SoFi basically plans to connect MotoRefi’s solution to 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 SoFi will offer 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 developing 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 to Sacramento to accelerate its goal of obtaining a banking charter, which will greatly simplify its operations.
The move to automatic refinancing certainly continues SoFi’s strategy of diversifying its lending operations and sources of income in order to get the most out of the typical consumer who too often uses multiple banks for their financial needs.
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