SoFi Seeking $500 Million to Buy Other Fintech Firms

Social Finance Inc. (SoFi) – an online finance company that provides lending products including student loan refinancing, personal loans, and mortgages – is reportedly seeking a $500 million line of credit from banks to acquire other financial technology firms, according to the Wall Street Journal. The loan is part of a plan by new CEO Anthony Noto – who took control of the company in March – to expand SoFi’s presence into areas like banking services and wealth management.

The new CEO’s goal, the Wall Street Journal reports, is to make SoFi a more full-service financial institution. When SoFi began in 2011, the company was originally developed as a way to provide more affordable options for student loan refinancing by using an alumni-funded lending model that connected students and recent graduates with alumni and institutional investors via school specific student loan funds.

In June, SoFi began offering customers a checking account and debit card under a new offering called SoFi Money. Those accounts offer a 1.10% APY, free ATM usage, no account fees, and access to membership services. The Journal reports that a recent letter to SoFi shareholders says the company “plans to give customers access to buying and selling individual stocks and assets this year.”