SoFi to start offering automatic loan refinancing

The 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 stated that it plans to acquire the little 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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