No doubt about it, SoFi stands out as a giant and an early leader in the fintech world. However, lately they’ve had to retrench and rethink some of their growth plans. Earlier this year they had indicated they would expand into foreign markets, and also had plans to open their own bank. For now, at least, those plans have been dropped and several senior members of their management team have recently exited. The firm is actually experiencing growth and higher profitability, but obviously has hit the pause button for a moment to recalibrate. Happens to the best of us.
“Financial-technology startup Social Finance Inc. is ditching some of its most ambitious initiatives after a workplace scandal prompted the resignation of former CEO Mike Cagney two months ago.
SoFi is “pulling back” on plans to expand into foreign markets and asset management from its original business of lending to young, high-income U.S. consumers, interim CEO Tom Hutton wrote in a letter to investors that was reviewed by The Wall Street Journal. That retrenchment comes a month after SoFi dropped its bid to open its own bank.
As part of the changes, SoFi executives Peter Early and Arkadi Kuhlmann are leaving the firm, a person familiar with the matter said. Mr. Early has led asset management, while Mr. Kuhlmann led banking after joining SoFi as part of an acquisition earlier this year…
Despite the internal issues, SoFi told investors that its financial performance was improving. During the third quarter, SoFi extended $3.52 billion in refinanced student, personal and mortgage loans, up nearly 80% from the same period in 2016…”
Full Story at WSJ.com (behind Paywall)