March 13 (Reuters) - SoFi said on Thursday it

has finalized an agreement of up to $5 billion with funds

managed by asset manager Blue Owl Capital to provide personal

loans on its finance app, highlighting the increasing shift of

consumers from traditional banks to fintech lenders.

WHY IT'S IMPORTANT

High interest rates, stricter bank lending standards and a

growing preference for digital-first financial services have

driven borrowers toward fintech platforms, which offer faster

approvals, flexible credit options, and streamlined application

processes.

At the same time, institutional investors are increasingly

backing these loans, attracted by their potential for higher

yields compared to other fixed-income assets.

CONTEXT

SoFi's two-year agreement with funds managed by Blue Owl

Capital is its largest such deal to date and highlights rising

demand for personal loans from both borrowers and debt

investors.

Under the terms of the agreement, the fintech will act as an

intermediary by referring pre-qualified borrowers to lending

partners or originating loans on behalf of third parties, making

borrowing more accessible.

It also advances SoFi's strategy to diversify its revenue

streams through less capital-intensive, fee-based income

sources.

In October, the company announced a $2 billion loan platform

business agreement for personal loans with funds managed by

affiliates of Fortress Investment Group.

BY THE NUMBERS

In 2024, SoFi's loan platform business originated $2.1

billion of loans, the fintech firm said.

For full-year 2024, the company's fee-based revenue surged

74% to $969.9 million, driven by strong performance across

origination fees, loan platform business as well as interchange,

brokerage and referrals.

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