SoFi Archives - Finovate

SoFi Enters the Enterprise Banking World with Crypto-Native Infrastructure

By Julie Muhn (@julieschicktanz) Posted on April 3, 2026
Categories: Daily news, SoFi

SoFi is entering commercial banking with a 24/7 model that combines fiat accounts, crypto rails, and its own tokenized deposit, SoFiUSD, to enable real-time money movement.
The company is taking a “stablecoin sandwich” approach, converting fiat to SoFiUSD and back again to enable instant settlement while keeping deposits on its balance sheet.
SoFi is positioning itself between banks and fintechs, aiming to deliver the speed of crypto-native players and the trust of a regulated bank in a single platform.

Lending and wealth management fintech SoFi is joining the commercial banking world with the launch of SoFi Big Business Banking, its new set of enterprise banking tools. The new offering comes with both fiat and crypto-native infrastructure that allows for 24/7 money movement.

The launch comes as part of SoFi’s new focus on integrating into the blockchain. Most recently, the company launched its own tokenized deposit, SoFiUSD, to settle its crypto trading business, offer faster settlement around the clock, power international remittances, and more.

“To be competitive businesses today must operate in a global, always-on environment 24 hours a day, 7 days a week, while legacy banks typically still operate 9 to 5, Monday to Friday,” said SoFi CEO Anthony Noto. “SoFi Big Business Banking is changing that by combining the strength and regulatory foundation of a nationally chartered bank with the speed, scale, and flexibility companies need to move and manage money or digital assets in real time.”

SoFi’s new business offering will help companies make payments, access funds, and operate in real time with a fully chartered bank. At launch, SoFi’s Big Business Banking comes with deposit accounts, fiat, crypto, and SoFiUSD payments. By leveraging digital currencies, SoFi is enabling businesses to transact outside of traditional banking hours. The company is taking the “stablecoin sandwich” approach, allowing businesses to convert from fiat to SoFiUSD, then back to fiat, enabling real-time settlement without relying on external rails, while ensuring deposits remain on SoFi’s balance sheet.

By combining fiat accounts, payments, and digital asset infrastructure into a single regulated platform, SoFi is positioning itself as the bank for a world where money moves 24/7 and across formats. While fintechs like Ramp are building the operating systems for how companies spend money, SoFi is making a play to own where that money lives—and increasingly, how it moves between traditional and on-chain systems.

SoFi’s Big Business Banking is already live. Initial clients include Cumberland, Bullish, BitGo, B2C2, Fireblocks, Wintermute, Galaxy, Jupiter, Mesh Payments, and Mastercard.

Competition in the business banking space has been steadily rising for the past six years, and the use of blockchain rails is intensifying the pressure. Banks are piloting tokenized deposits and blockchain-based settlement, while payments firms like Stripe and Checkout.com are adding stablecoin capabilities to support faster global commerce. Crypto-native players, such as Circle and Coinbase, continue to offer 24/7 settlement outside the banking system entirely. SoFi is attempting to bring these models into a single offering that delivers the speed of stablecoins with the trust of a regulated bank. And because it has its own stablecoin, it doesn’t rely on external infrastructure.

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Fintech Rundown: A Rapid Review of Weekly News

By David Penn Posted on December 22, 2025
Categories: Coinbase, Finastra, Fintech Rundown, Pendo, SoFi, VISA

Welcome to Finovate’s final Fintech Rundown of 2025! DeFi and crypto have dominated the fintech news in recent weeks, with some companies in the space launching stablecoins and stablecoin-related services, while others announce expansion into new markets. We will update this post over the next several days to keep you informed on the final big headlines of the year.

Investing and wealth management

An investor group led by Permira and Warburg Pincus has announced plans to acquire Clearwater Anaytics in a transaction valued at $8.4 billion.

DeFi and crypto

Coinbase launches Stablecoins-as-a-Service solution, Custom Stablecoins.

Cryptocurrency exchange Bybit re-launches in the UK.

SoFi launches fully reserved stablecoin.

US-based digital currency platform CoinFlip opens its Crypto Center in Mexico City.

AI

Pendo announces the general availability of its Agent Analytics solution.

Insurtech

AI-native commercial insurer Nirvana Insurance raises $100 million in Series D funding.

Payments

Visa and Aldar announce strategic collaboration and live implementation of end-to-end voice-enabled agentic payments.

Digital banking

Financial services software company Finastra announces opening of new offices in Atlanta and in Trivandrum, India.

Fraud prevention and financial crime

ComplyAdvantage partners with Sutherland to launch an AI-powered compliance solution for banks and fintechs.

Photo by Aaron Burden on Unsplash

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SoFi Launches SoFiUSD Stablecoin, But Could it Actually be a Tokenized Deposit?

By Julie Muhn (@julieschicktanz) Posted on December 18, 2025
Categories: Daily news, SoFi, Thought Leadership

SoFi has launched SoFiUSD, a fully reserved US dollar token issued by SoFi Bank, positioning itself as a stablecoin infrastructure provider for banks, fintechs, and enterprises seeking faster, always-on settlement.
Although branded as a stablecoin, SoFiUSD’s cash-only backing and on-demand redemption model place it closer to a tokenized bank deposit.
SoFi’s approach aligns more closely with JPMorgan’s JPM Coin than with non-bank stablecoins like KlarnaUSD, underscoring a growing divide between bank-issued tokenized deposits and fintech-issued stablecoins as programmable money adoption grows.

Lending and wealth management fintech SoFi is entering the stablecoin market today. The San Francisco-based lending and wealth management company has launched SoFiUSD, a fully reserved US dollar token issued by SoFi Bank.

The new tool blurs the line between a traditional stablecoin and a tokenized bank deposit. The distinction between these two terms matters, as banks and fintechs are increasingly taking different approaches to bringing regulated money onto blockchain rails.

SoFiUSD will allow SoFi, an OCC-regulated insured depository institution, to serve as a stablecoin infrastructure provider for banks, fintechs, and enterprise platforms with an aim to streamline operations with the faster and more efficient money movement that stablecoins offer. SoFi’s new stablecoin will enable partners to leverage SoFi’s framework to issue white-labeled stablecoins or integrate SoFiUSD into their own settlement flows.

SoFiUSD will be used for:

Settling SoFi’s crypto trading business
Offering third parties such as card networks, retailers, or businesses faster, safer settlement 24/7
Powering SoFi Pay for international remittances and point-of-sale purchases
Serving as an alternative form of payment for Galileo’s partners
Acting as a secured dollar-denominated asset for companies operating in countries with volatile currencies

“Blockchain is a technology super cycle that will fundamentally change finance, not just in payments, but across every area of money,” said SoFi CEO Anthony Noto. “With SoFiUSD, we’re using the infrastructure we’ve built over the last decade and applying it to real-world challenges in financial services. Companies today struggle with slow settlement, fragmented providers, and unverified reserve models. SoFi is helping address these gaps by combining our regulatory strength as a national bank with transparent, fully reserved on-chain technology to provide a safer and more efficient way for partners to move funds.”

While SoFi is calling SoFiUSD a stablecoin, its reserve model acts more like a tokenized deposit. That’s because the token is fully backed by cash held at SoFi Bank and redeemable on demand, representing bank deposits on-chain. This structure removes liquidity and credit risk and positions SoFiUSD as regulated bank money rather than a crypto instrument.

SoFi may be using the term “stablecoin” for three reasons. The first is market familiarity, as the term “stablecoin” is more widely recognized than tokenized deposits. The second is regulatory ambiguity, since US regulators have yet to formally define how tokenized deposits should be treated. The third is interoperability, with “stablecoin” indicating compatibility with today’s on-chain payment rails.

By launching what is effectively a tokenized deposit, SoFi joins a small but growing group of regulated banks experimenting with blockchain-based bank money, most notably JPMorgan Chase, which launched JPM Coin in November. Like JPM Coin, SoFiUSD keeps reserves inside the banking system and uses on-chain rails to modernize settlement rather than to create a parallel form of money.

The tokenized deposits approach stands in contrast to KlarnaUSD, Klarna’s recently announced stablecoin, which is issued by a non-bank and backed by reserves held outside the issuer’s balance sheet. While KlarnaUSD is designed to improve payments efficiency for cross-border commerce, SoFiUSD’s approach leverages a bank charter to embed stablecoins directly into deposits, lending, and treasury workflows.

As banks and fintechs experiment with programmable money, the distinction between bank-issued tokenized deposits and non-bank stablecoins may prove critical in determining which models scale beyond payments into the core of financial services.

Photo by Dawid Sokołowski on Unsplash

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Paychex Delivers SoFi Personal Finance Tools

By Julie Muhn (@julieschicktanz) Posted on July 17, 2025
Categories: Daily news, SoFi

Paychex is partnering with SoFi to offer employees access to personal finance tools like loan refinancing and debt management through its digital benefits marketplace.
Employees cover the cost of the tools via payroll deduction, which means the employer gets to offer the tools at no cost.
This move helps even small businesses stay competitive in a tight labor market by delivering enterprise-grade perks that support employee financial well-being and retention.

Human capital management (HCM) company Paychex announced this week that it is teaming up with financial platform SoFi to bring end users access to SoFi’s personal finance tools.

Specifically, users of Paychex Flex Perks can connect to SoFi’s solutions via Paychex’s digital employee benefits marketplace. With this access, employees of Paychex customers can use SoFi’s solutions to support their journey to financial independence, including personal loans, student loans, loan refinancing, and more.

“Employees today expect their employer to help support their financial well-being—it’s no longer a ‘nice-to-have’ benefit,” said Paychex Vice President of Corporate Strategy, Business Development, and Investor Relations Cory Mau. “Businesses that provide access to financial wellness benefits often increase employee productivity, recruit and retain talent more effectively, and ultimately drive positive business outcomes.”

Paychex FlexPerks is available in Paychex Flex, a cloud-based HCM SaaS platform that makes it easy for employees to enroll in benefits. Paychex Flex Perks allows even small businesses to offer enterprise-level benefits to entice and retain employees. Launched in 2024, the marketplace has helped more than 230,000 employees purchase at least one benefit from the marketplace.

Employees can use Paychex’s benefits marketplace to select additional benefits based on their own needs. The employees pay for the additional benefits via payroll deduction, meaning they do not pose additional cost to the employer.

The benefits are made possible by SoFi at Work. Launched in 2016, SoFi at Work aims to help employers offer their workforce student loan refinancing, repayment options, a debt navigator tool, financial education resources, and more.

“Our partnership with Paychex marks a major milestone in SoFi at Work’s mission to help more Americans achieve financial independence,” said SoFi EVP for Spend, Invest, Protect, and Save Kelli Keough. “Financial tools and top-tier benefits should be available to everyone, not just employees of large companies. That’s why we’re partnering with Paychex, to make it easier for companies of all sizes, to support their workforce with meaningful and actionable benefits. Embedding SoFi’s financial well-being tools directly into Paychex will help millions of users nationwide take more control of their financial futures.”

As more employers recognize that financial stress impacts productivity and retention, embedding financial wellness tools directly into HR platforms is nearly becoming table stakes rather than a differentiator. The integration between Paychex and SoFi allows small and medium-sized businesses to offer the kind of high-quality financial tools and benefits that were previously only accessible at enterprise scale. In a tight labor market, that is a big deal where benefits can make or break acquiring quality talent.

Photo by Katie Harp on Unsplash

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SoFi’s Galileo Helps Fintechs Extend FDIC Insurance Beyond the Coverage Limit

By Julie Muhn (@julieschicktanz) Posted on April 9, 2025
Categories: Alumni News, Daily news, SoFi

Galileo launched Deposit Sweep to help fintechs extend FDIC insurance protection and offer higher interest earnings by partnering with a network of banks.
The tool automates the movement of funds across banks once a balance hits a set threshold to maximize interest earnings and secure more funds.
The launch of Deposit Sweep comes in response to rising concerns around deposit safety post-Silicon Valley Bank collapse, helping fintechs protect customer funds beyond the traditional $250,000 limit.

SoFi-owned Galileo unveiled a new tool today called Deposit Sweep, designed to help fintechs and their sponsor banks offer customers extended FDIC insurance protection beyond the $250,000 limit. The tool makes it easier for fintechs to safeguard deposits beyond the traditional coverage limit while helping customers earn more interest on their balances.

Deposit Sweep connects fintechs with a network of participating banks through a leading deposit sweep provider. It enables them to select partner banks based on factors like pricing, regulatory requirements, operational needs, and interest rates, which can offer customers a secure, streamlined way to protect and grow their funds.

“Galileo Deposit Sweep empowers fintechs to deliver more competitive returns for their customers by leveraging a network of participating banks and a deposit sweep provider,” said David Feuer, CPO at Galileo. “This solution enables fintechs to offer better interest rates without increasing operational complexity.”

Deposit Sweep can be easily integrated with a customer’s existing systems, and it can automate the movement of funds once the balance reaches a predefined threshold. Fintechs can offer Deposit Sweep as an opt-in service or automatically enroll all accountholders, who will still be able to view their full balances while funds and interest earnings transfer seamlessly in the background.

Founded in 2001, Galileo offers a payment processing platform that allows third-party fintechs and businesses to build and scale their own financial services offerings. The company, which was acquired by SoFi in 2020 in a $1.2 billion deal, powers a range of fintech and banking solutions, including digital banking, credit and debit card issuing, and money movement services. With the addition of Deposit Sweep, Galileo is further expanding its suite of products designed to help fintechs deliver more secure, competitive, and customer-friendly financial experiences.

Among Galileo’s customers is business banking platform Bluevine, which is currently piloting Deposit Sweep. “Working with Galileo to enable Deposit Sweep was seamless, allowing us to quickly bring the benefits of increased FDIC insurance and higher returns to our customers,” said Bluevine CPO Herman Man. “Our business customers rely on us for security and value, and Galileo’s support has been instrumental in enhancing our offerings and delivering on that promise.”

The launch of Deposit Sweep comes at a time when deposit security is top of mind for fintechs and their customers. The collapse of Silicon Valley Bank in 2023 highlighted the risks of holding large, uninsured deposits at a single institution. By making it easier to spread funds across multiple banks and extend FDIC coverage, Galileo’s Deposit Sweep addresses a key lesson from the Silicon Valley Bank fallout. Many fintechs learned that ensuring that customer funds is protected beyond traditional insurance limits is no longer just a value-add, but a necessity.

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Fintech Rundown: A Rapid Review of Weekly News

By Julie Muhn (@julieschicktanz) Posted on March 17, 2025
Categories: authenticID, Delfi Labs, Fintech Rundown, Fiserv, Insuritas, Mahalo Banking, MasterCard, SoFi

This is the week fintech has been anticipating for years. Klarna filed its F-1 prospectus document late Friday, anticipating it will raise at least $1 billion at a $15 billion valuation with its IPO. We won’t know the official valuation figures until Klarna prices shares, which may take around a month, however. While we wait, let’s dive into this week’s fintech news. We’ll continue adding news to this post throughout the week, so stay tuned!

Small Business Financial Management

Small business credit card and spend management platform Capital on Tap partners with bank payment firm GoCardless for Variable Recurring Payments (VRPs).

Levelpath joins Coupa App Marketplace with AI-powered procurement solution.

Insurtech

Insuritas integrates auto rates from Agency Insurance Company (AIC) into its embedded insurance platform.

Payments

Fiserv acquires Netherlands-based payment solutions provider CCV.

Wyndham collaborates with SoFi’s Galileo to launch the Wyndham Rewards Debit Card.

ICBA Payments and Mastercard partner to upgrade customer payment experiences for community banks.

AuthenticID and Authvia join forces to provide secure, frictionless digital payments.

Jack Henry and Moov to implement Mastercard Move to enable fast, seamless domestic payments.

ACI Worldwide and Ingo Payments to power faster, flexible digital disbursements.

Risk management

Delfi launches free risk management solution: Delfi Essentials.

Digital banking

Princeton Federal Credit Union goes live with Mahalo Banking’s Thoughtful Banking platform.

UK-based commercial digital bank for entrepreneurs OakNorth acquires Michigan-based Community Unity Bank.

ABNB Federal Credit Union chooses Eltropy’s AI-powered platform to modernize member communications.

Challenger banking

Nordic challenger bank Lunar tops one million user milestone.

Crypto / DeFi

Web3 non-custodial wallet Bitget Wallet partners with Cryptorefills to facilitate crypto payments for travel.

MoonPay acquires stablecoin infrastructure platform Iron.

Wealth management / Wealthtech

German wealthtech NAO announces a second closing of its seed funding round, bringing the funding total to €4.5 million.

Privacy and Security

BotGuard raises $49.2 million round B led by Dawn Capital, rebrands to Blackwall.

Ecommerce

Shopify transfers its US listing from the NYSE to the Nasdaq.

Credit and lending

Finastra unveils enhanced lending cloud service supported by IBM.

Credit risk management specialist AKUVO partners with Prosperity Bank to enhance the institution’s collections process.

Photo by Markus Winkler

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Fintech Rundown: A Rapid Review of Weekly News

By David Penn Posted on December 23, 2024
Categories: Apiture, Featurespace, Fintech Rundown, Fiserv, Scalable Capital, SoFi, VISA

It’s a holiday-shortened week here at the Fintech Rundown. But rest assured that we’ll have you covered on the the top fintech news headlines as 2024 moves toward a close.

We’re starting off with a series of stories in the embedded finance front, including an acquisition, a new launch, and a major fundraising.

Digital banking

Data-driven statement provider HC3 forges strategic partnership with digital banking solutions company Apiture.

TBC Uzbekistan raises $37 million from majority shareholder TBC Bank Group.

Payments

Visa completes its acquisition of Featurespace.

Turkey-based private bank İşbank expands its collaboration with Alipay+.

Cybersecurity

Chainalysis acquires web3 security solutions provider Hexagate.

Embedded finance

Fiserv boosts its embedded finance capabilities with its acquisition of earned wage access company Payfare.

Embedded SME lending platform CredibleX raises $55 million in seed funding.

Kobble, an embedded finance platform, launches in Australia.

Wealth management

Scalable Capital launches its World ETF, the Scalable MSCI AC World Xtrackers UCITS ETF.

Financial wellness

SoFi reaches ten million member milestone.

Photo by Daniel Reche

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A Look Back at What You Loved: Top 10 Posts of 2024

By Julie Muhn (@julieschicktanz) Posted on December 16, 2024
Categories: Fiserv, Klarna, List series, Revolut, Socure, SoFi

As both a conference producer and a news outlet, we’re always paying close attention to the topics that resonate most with you — our audience of fintech and banking professionals. To wrap up 2024 and brace ourselves of what to expect for 2025, we analyzed readership data to gain valuable insights into the stories, trends, companies, and products that mattered most to the industry this year to create the top 10 posts of 2024.

This list is compiled of posts published in 2024 that garnered the highest number of views and engagement in 2024. From breaking news to big IPOs, these were the stories you found most compelling. So, without further ado, here’s a countdown of the top 10 posts that captured your interest over the past year.

#10: Finovate Awards finalists (link)

Meet the Finalists of the 2024 Finovate Awards!

#9: Klarna’s long-awaited IPO (link)

5 Facts About Klarna’s Long-Awaited IPO

#8: How Galileo is expanding into real time payments (link)

SoFi’s Galileo Extends Partnership with The Bancorp to Offer Real-Time Payments

#7: A highlight of conversations with FinovateFall’s Best of Show Winners (link)

Best of Show Winners from FinovateFall 2024 Join the Finovate Podcast

#6: A look at Socure’s big buy (link)

Socure Acquires Real-Time Risk Decisioning Company Effectiv for $136 Million

#5: A Finovate Global roundup focused on central Asia (link)

Finovate Global Uzbekistan: Fintech Innovation and Banking Breakthroughs in Central Asia

#4: A look at how Walmart is tapping a traditional fintech player to compete on payments (link)

Walmart Taps Fiserv to Offer Pay by Bank

#3: The news event that kicked off the stablecoin frenzy (link)

What Stripe’s Purchase of Bridge Means for Stablecoins in the U.S.

#2: A mid-year roundup of M&A activity (link)

Top 10 Fintech Acquisitions of Summer 2024 (So Far)

#1: How Revolut is doubling down in the wealth management arena (link)

Revolut to Launch Standalone Wealth Management App

Photo by Vlada Karpovich

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Mesh Payments Integrates with SoFi’s Galileo

By Julie Muhn (@julieschicktanz) Posted on December 13, 2024
Categories: Alumni News, Daily news, SoFi

Travel and expense management company Mesh Payments has selected SoFi as its sponsor bank and has tapped SoFi-owned Galileo Financial Technologies as its payment processor.

Mesh Payments is an all-in-one corporate payments platform for travel and expense that integrates corporate cards, expense management, and travel bookings on a single platform. Mesh Payments offers SaaS enterprises cardless payments capabilities that enable full visibility, control, and intelligence to help them orchestrate, manage, reconcile, and ultimately reduce spending. The company, which processes more than $1 billion in annual payment volume, was founded in 2018.

Under the partnership, Mesh Payments’ expense and card infrastructure will tap SoFi’s financial framework and Galileo’s customizable, API-based payments processing platform. Mesh Payments anticipates that leveraging both SoFi as its sponsor bank and Galileo as its processing platform will help it offer more streamlined enterprise expense management, reduce inefficiencies, and bring solutions to market more quickly.

“We’re excited to partner with SoFi and Galileo, as both companies share our vision of delivering the most modern and innovative financial solutions for businesses,” said Mesh CEO Oded Zehavi. “They are the ideal partners to support our mission to provide companies with an efficient, forward-thinking approach to corporate travel and expense management.”

Founded in 2001, Galileo offers a payment processing platform that allows third-party fintechs and businesses to build and scale their own financial services offerings. The company’s client list includes DailyPay, Bluevine, Dave, MoneyLion, Monzo, and others. Galileo was acquired by SoFi in 2020 in a $1.2 billion deal.

Founded in 2011, SoFi has evolved from a lending platform into a nationally chartered bank that offers checking and savings accounts, investing tools, and insurance plans. The company landed its first sponsor bank deal in April of 2024 when it partnered with small business banking platform Rapid Finance.

“SoFi is proud to provide the financial backbone for forward-thinking solutions like Mesh Payments,” said SoFi Bank President Paul Mayer. “With SoFi and Galileo under one roof, we empower partners like Mesh Payments to harness Galileo’s advanced cloud-based banking core, enabling them to launch new products faster, scale seamlessly, and stay ahead of their customers’ ever-changing needs.”

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SoFi’s Galileo Extends Partnership with The Bancorp to Offer Real-Time Payments

By Julie Muhn (@julieschicktanz) Posted on March 4, 2024
Categories: Alumni News, Daily news, SoFi, The Bancorp Bank

Galileo Financial Technologies has expanded its partnership with The Bancorp Bank.
Though The Bancorp Bank, Galileo will leverage The Clearing House’s Real Time Payments network to offer real-time payments to help its retail and commercial clients transfer money in real time, 24-hours a day.
The Clearing House reported record usage of its RTP network in the third quarter of last year, when it reached 64 million transactions valued at $34 billion.

SoFi-owned Galileo Financial Technologies has expanded its relationship with The Bancorp Bank this week in an effort to enable real-time payments.

Under the scaled up agreement, Galileo and The Bancorp will leverage The Clearing House’s Real Time Payments (RTP) network to fuel real-time payments services. By offering instant money movement between bank accounts, the two will enable Galileo’s fintech clients to help their retail and commercial customers solve cash flow challenges by gaining fast access to their funds.

With the RTP network, real time money movement is available on any day of the year, 24-hours a day. This availability and speed not only solves cashflow issues, it also helps businesses deal with time sensitive transaction and ultimately enhances customer satisfaction.

“Consumers and businesses expect payments to be available instantly, and offering real-time payment capabilities ensures Galileo’s clients can deliver on that expectation,” said Galileo Financial Technologies Chief Product Officer David Feuer. “With this integration between The Bancorp and Galileo, we can offer a swift, efficient way to ensure faster money movement today.”

The Clearing House, which launched its RTP network in 2017, has seen growth in demand for real-time payments. In the third quarter of last year, the company reported that usage of its RTP network hit a record high, reaching 64 million transactions valued at $34 billion. The Clearing House competes directly with the U.S. government’s real-time money service, FedNow, which launched in July of 2023. Currently, more than 350 financial institutions enable their retail customers and 150,000+ business clients to send payments over the RTP network.

Founded in 2001, Galileo is a payment processing platform that allows third party fintechs and businesses to build and scale their own financial services offerings. The company’s client list includes DailyPay, Bluevine, Dave, MoneyLion, Monzo, and others. Galileo was acquired by SoFi in 2020 in a $1.2 billion deal.

Headquartered in Wilmington, Delaware, The Bancorp Bank provides fintechs with the people, processes, and technology to meet their banking needs. The bank is the third-largest bank by assets, has more than 75 million prepaid cards in distribution and processes 1.1 billion transactions each year. Damian Kozlowski is President and CEO.

Photo by Thomas Brenac

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SoFi at Work Launches Student Loan Verification Service

By Julie Muhn (@julieschicktanz) Posted on June 9, 2023
Categories: Alumni News, Daily news, SoFi

SoFi’s SoFi at Work is launching a Student Loan Verification service this week that will help employers match their workforce’s student loan repayments with retirement contributions.
The tool comes in response to Congress’ SECURE 2.0 Act that allows employers to match their employees’ student loan repayments with retirement contributions.
In addition to Student Loan Verification, SoFi at Work also helps employers offer student loan refinancing, repayment options, a debt navigator tool, financial education resources, and more.

SoFi’s SoFi at Work program is launching a new Student Loan Verification (SLV) service this week. The new tool will help companies match their employee’s student loan repayments with retirement contributions.

SLV will be added to SoFi at Work’s portfolio of employer financial wellness benefit solutions. The launch comes in response to Congress’ Securing a Strong Retirement Act (SECURE 2.0), which allows employers to match their employees’ student loan payments with contributions toward retirement plans.

“At SoFi, we’re dedicated to helping people get their money right, and SECURE 2.0 and the provision that makes it easier for companies to support all employees’ financial well-being is a great example of that,” said SoFi at Work Vice President, Business Lead Barrett Scruggs. “Our Student Loan Verification service makes it easy for companies to put this emerging, yet highly impactful benefit into action for a more inclusive future.”

According to a 2019 study from MIT, 84% of adults with student loan debt say it has impacted the amount they’re able to save for retirement. With SLV and SECURE 2.0, companies can enable their workers to contribute to their 401(k) or 403(b) plan while paying down their student debt.

Launched in 2016, SoFi at Work aims to help employers offer their workforce student loan refinancing, repayment options, a debt navigator tool, financial education resources, and more. Seven out of 10 Fortune 500 tech firms currently offer the perk to their employees.

Photo by RDNE Stock project

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SoFi Shifts Focus to MortgageTech with New Acquisition

By Julie Muhn (@julieschicktanz) Posted on April 4, 2023
Categories: Alumni News, Alumni profile, Mergers & Acquisitions, SoFi

SoFi is saying, “Welcome home!” to Wyndham Capital Mortgage this week. The California-based fintech acquired the mortgage lender yesterday in an all-cash transaction for an undisclosed amount.

Headquartered in North Carolina and founded in 2001, Wyndham Capital has worked with more than 100,000 borrowers.

SoFi, which is acquiring Wyndham Capital’s technology and its employees, expects the purchase will broaden its mortgage-related offerings and minimize its reliance on third-party partners and processes.

“At SoFi, we’re on a mission to help people get their money right and purchasing a home is often one of, if not the, biggest financial decision individuals make in their lives,” said SoFi CEO Anthony Noto. “Today’s acquisition of Wyndham Capital will not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies and helps members get their money right when it comes to one of life’s most significant financial milestones.”

SoFi, which presented at Finovate’s developers conference in 2017, launched in 2011 to disrupt the student lending market. Since then, the company has added a variety of banking products– including personal loans, auto refinancing, credit cards, investing, checking, savings, insurance, and others– to become a more holistic banking option for consumers. SoFi sealed its status as a bank last January, when it received approval from the U.S. Office of the Comptroller of the Currency (OCC) and the Federal Reserve to become a bank holding company.

It’s a reasonable time for SoFi to double-down on mortgages to diversify from its flagship offerings, student loans. The company may be starting to feel heat from the loss of revenue from its student loan refinancing tools. In fact, SoFi went to such an extreme last month as to sue the Biden administration for its continued pause on federal student loan repayments. The fintech argues that the moratorium, which has been extended eight times over three years, has no legal basis.

SoFi estimates it has lost $6 million in profits from the latest extension and, expects losses to total $30 million if the moratorium continues through August. “In essence, SoFi is being forced to compete with loans with 0% interest rates and for which any ongoing repayment of the principal is entirely optional,” SoFi argues in the lawsuit.

The lawsuit is currently being challenged in the Supreme Court and is expected to be resolved by June.

Photo by Curtis Adams

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