Kevin JohnsonSoFi, short for Social Finance Inc., is an American online personal finance company based in San Francisco, California. The company was founded in 2011 by Mike Cagney, Ian Brady, Dan Macklin, and James Finnigan, former students at the Stanford Graduate School.
Today, SoFi offers an online bank, auto loan refinancing, credit cards, mortgages, student and personal loans, and investing through mobile app and desktop interfaces. In 2021, SoFi reported a 63% increase in revenue to over $1 billion. [1]
SoFi’s inaugural loan program was a pilot that allowed 40 Stanford alumni to lend about $2 million to around 100 students. In May 2016, SoFi received a triple-A rating from Moody’s. It was the first startup-online lender to achieve this milestone.
By Oct 2016, SoFi had around 175,000 members and funded over $12 billion in loan volume. SoFi acquired Golden Pacific Bancorp in 2022, allowing the firm to hold investment loans instead of selling them to external investors.
In 2021, SoFi added 3.5 million new customers, up 87% compared to 2020. However, the company faces stiff competition from Turnkey Lender, Sageworks Lending, FIS, Finflux, Calyx, and Upstart. [2]
Here is an in-depth analysis of SoFi’s competitors and alternatives:
1. TurnKey Lender
Year founded: 2014
Headquarter: Austin, Texas
TurnKey Lender is a global B2B SaaS company. It offers an AI-powered lending automation platform and decision management solutions and services. In Jul 2022, Turnkey Lender raised $10 million in funding and will use the funds to exploit new opportunities in embedded lending across North America, Europe, and Southeast Asia. [3]
TurnKey Lender automates the entire digital lending process. Around 180 clients and over 50 million end users in more than 50 countries use its SaaS platform and embedded financing software.
In 2022, the company partnered with VoPay to offer lenders digitized end-to-end process automation. Turnkey Lender is the top SoFi competitor and alternative.
2. Sageworks Lending
Year founded: 2000
Headquarter: Austin, Texas
Sageworks Lending is a lending automation platform owned and operated by Abrigo. It implements scalable processes and automates loan origination and boarding, allowing banks to book more loans quickly.
In May 2022, Abrigo partnered with Validis to help financial institutions extract general ledger data efficiently. [4]
The Abrigo-Validis partnership will ensure banks and credit unions complete the lending process without leaving the Sageworks Lending platform. The firm also offers a Loan Decisioning solution that increases efficiency and consistency in documentation and analysis.
Unlike SoFi, Sageworks Lending focuses on financial institutions. So, the two companies compete against each other for banks and credit unions.
3. Finflux
Year founded: 2010
Headquarter: Bengaluru, India
Finflux is a cloud-native SaaS-based lending platform. It offers an all-in-one solution to help institutions manage their lending operations, from loan origination to loan management and financial accounting. In Jul 2022, M2P Fintech announced the acquisition of Finflux for an undisclosed amount. [5]
Finflux and SoFi offer app-based lending, data-based credit scoring, dashboards, reporting, and analytics. Over 60 global customers work with Finflux, including lending fintech, non-banking financial firms, microfinance institutions, banks, and savings and credit unions. The acquisition of Finflux by M2P can increase its competitive advantage over SoFi.
4. FIS Commercial Lending Suite
Year founded: 2011
Headquarter: Jacksonville, Florida
FIS is a leading provider of financial technology solutions for institutions and businesses of all sizes. The company offers a commercial lending suite and loan management system which compete against SoFi. In 2021, FIS ranked 241st on the Fortune 500 list.
FIS’ Commercial Lending Suite is an integrated front-to-back office solution with flexible workflows and analytics. It also provides a dedicated platform for building loan management solutions for banks, consumer lenders, and fintech firms.
In Feb 2022, Fortune Magazine named FIS on its World’s Most Admired Company list. FIS is one of the top SoFi competitors in the financial technology sector. [6]
5. Calyx PointCentral
Year founded: 2012
Headquarter: San Jose, California
Calyx provides compliant mortgage software solutions for banks, credit unions, lenders, and brokerages. Its user-friendly technology includes online borrower interviews, loan origination systems, and e-signature software.
Calyx PointCentral simplifies loan processes for institutions of all sizes regardless of their workflows, channels, and complexities. In Aug 2022, Calyx enhanced its point-of-sale (POS) platform, Zip, with new features to improve borrower and originator engagement.
Mortgage bankers and lenders can use Calyx PointCentral instead of SoFi to streamline their loan application process. Calyx is the best alternative to SoFi for mortgage lenders. [7]
6. LoanPro
Year founded: 2014
Headquarter: Farmington, Utah
LoanPro is a SaaS-based lending and loan servicing platform. It is built on LoanPro’s API, allowing users to integrate it with their software to unify the loan lifecycle in a single source. In Jul 2021, LoanPro secured a $100 million investment led by FTV Capital. [8]
LoanPro has over 600 business clients in North America and Canada and manages more than $15 billion in loans.
Like SoFi, LoanPro helps lenders streamline loan management, servicing, and collections. However, LoanPro’s API enables real-time monitoring and automation of loans for mid-sized and enterprise lenders. LoanPro is one of the best alternatives to SoFi for lenders.
7. Centrex Software
Year founded: 2015
Headquarter: Costa Mesa, California
Centrex is a dedicated business lending CRM and loan servicing software platform. It offers a full suite of solutions for brokers, lenders, banks, investors, and fintech firms. The company recorded a 22% growth in revenue from 2019 to 2020 and a 35% growth from 2020 to 2021.
The main competitive advantage for Centrex over SoFi is its all-in-one software. Users can access multiple technologies in a single platform.
In Dec 2021, Centrex launched a new relationship-building technology at Broker Fair. The firm built a white-label mobile app to help businesses retain customers. This solution can poach some clients from SoFi. [9]
8. Upstart
Year founded: 2012
Headquarter: San Mateo, California
Upstart is an AI-based lending platform that links borrowers with lenders. The firm partners with banks and credit unions to provide consumer loans. Upstart had around 1,490 employees and generated $848.6 million in revenue last year.
Upstart’s annual percentage rate is higher than SoFi’s offering; however, the main competitive advantage for Upstart over SoFi is its AI-based platform. It predicts creditworthiness using more than 1,500 non-traditional variables, such as college education and employment.
With this AI-driven approach, Upstart can approve loans almost instantly. Upstart is a worthy SoFi competitor and alternative in the personal loan sector. [10]
9. Zoot Enterprises, Inc.
Year founded: 1990
Headquarter: Bozeman, Montana
Zoot provides advanced origination, decision management, and data acquisition solutions. Financial institutions rely on Zoot’s comprehensive and flexible platforms to meet specific business needs, including fraud detection and prevention.
In Jul 2022, Zoot partnered with Daimler Truck Financial Services USA to provide data-driven leasing and financing for the commercial vehicle industry.
Financial institutions use Zoot’s state-of-the-art solutions and services to leverage precise, real-time data for responsive decision-making. According to Jason Wroblewski, DTFS Risk Analytics Manager, Zoot’s automated processes and configurable functionality eliminate manual processes. Zoot is one of the top alternatives to SoFi for loan origination solutions. [11]
10. Prosper Personal Loans
Year founded: 2005
Headquarter: San Francisco, California
Prosper is a peer-to-peer lender that matches potential borrowers with individual investors who fund the loans. According to Prosper, applicants who qualify for loans on its platform have an average credit score of 722. [12]
SoFi and Prosper help consumers borrow personal loans, but SoFi has lower rates and unique perks, including networking events and career coaching. The main advantage of using Prosper is to access a joint personal loan that allows two people to apply for a single loan. Prosper is one of the best alternatives to SoFi.
11. Margill Loan Manager
Year founded: 1993
Headquarter: Blainville, Quebec, Canada
Margill offers a loan servicing and credit management system. Its platform allows users to manage risky debts, staff time, and productivity. According to G2, Margill Loan Manager has a 4.8-star rating.
Like SoFi, Margill Loan Manager offers access to consolidate finances for timely accounting and reporting. In Nov 2021, Margill’s staff toured the Pacific for three weeks as part of the firm’s global expansion efforts. The CEO launched Margill Loan Manager and trained clients in the Marshall Islands, Guam, and Papua New Guinea. Margill is a fast-growing SoFi competitor. [13]
12. Avant Personal Loans
Year founded: 2012
Headquarter: Chicago, Illinois
Avant is an online lending platform offering personal loans and catering to borrowers with a credit score of 600-700. In 2021, Avant paid $1.6 million after Massachusetts AG alleged that the company used abusive debt collection practices. [14]
The main advantage of using Avant is its fast funding offering. The firm approves borrowers within one business day and deposits the funds in their accounts within 48 hours.
Both Avant and SoFi charge origination and late payment fees, but Avant users can check pre-qualified loan amounts and APRs to determine whether loan payments fit into their monthly budgets. Avant is one of the top SoFi alternatives for personal loan borrowers.
13. LoanDisk
Year founded: 2015
Headquarter: Sydney, New South Wales, Australia
LoanDisk is an integrated loan management software that allows users to manage all their customer loans and savings in one place. It is an online, cloud-based accounting platform that unites banks and their borrowers in one system. According to G2 Customer Reviews, LoanDisk has a rating of 4 out of 5. [15]
LoanDisk allows users to visualize how their loans evolve in real-time and access reports of interest due. Unlike SoFi, LoanDisk was developed for accounting pros and departments to reduce their workload. LoanDisk is one of the top alternatives to SoFi for accountants.
14. Upgrade
Year founded: 2016
Headquarter: San Francisco, California
Upgrade is a lending platform that offers personal loans in every state except West Virginia, Washington, DC, and Iowa. Borrowers can access loans from $1,000 to $50,000 within one business day. According to Forbes, Upgrade charges origination fees of 2.9%- 8%. [16]
Both Upgrade and SoFi offer personal loans, but Upgrade has higher APRs and a limited market presence. Borrowers can use Upgrade’s loans to cover everything, from home improvements to big-ticket purchases and debt consolidation. Upgrade is one of the best alternatives to SoFi for consumers with fair credit.
15. Credible
Year founded: 2012
Headquarter: San Francisco, California
Credible is a lender marketplace that connects borrowers with partner lenders. Users can compare offers from credit unions, banks, and financial institutions, including SoFi, Marcus by Goldman Sachs, Discover, and Upstart. As of Dec 2022, Credible’s personal loans had annual percentage rates of 5.4% to 35.44%.
Unlike SoFi, Credible does not issue loans. The main benefit of using Credible is its Best Rate Guarantee on personal loans. This program offers users a cash bonus if they find a better loan offer elsewhere. According to Better Business Bureau, Credible has an A+ BBB rating. Credible is one of the best sites for comparing personal loan offers. [17]
References & more information
- SRD (2022, May 31). Annual net revenue of SoFi: 2018-2021. Statista
- Zimmer, E. (2022, Mar 2). SoFi revenue doubled in Q4, with total revenue for the year up 64%. ZDNet
- PYMNTS (2022, Jul 14). Turnkey Lender Raises $10M, Names Board Chair. PYMNTS
- Abrigo (2022, May 19). Abrigo Collaborates with Validis to Speed Up Small Business Lending Process. PRNewswire
- ET Tech (2022, Jul 6). M2P Fintech acquires Finflux to boost digital lending capabilities. Economic Times India
- FIS (2022, Feb 2). FIS Named to FORTUNE’s 2022 World Most Admired Company List. Yahoo Finance
- Calyx (2022, Aug 23). Calyx Software announces new enhancements to its Zip point-of-sale platform. Globe Newswire
- Hindle, P. (2021, Jul 13). LoanPro lands a $100 Series A round led by FTV Capital. Fintech Futures
- Fintech Editor (2021, Dec 21). Centrex Software Announces New Relationship Building Technology at Broker Fair 2021. De-Banked
- Tarver, J. (2022, Dec 2). Upstart Personal Loans Review: 2022. Forbes
- Zoot Enterprises, Inc. (2022, Jul 13). Daimler Truck Financial Services Partners with Zoot Enterprises. PRNewswire
- Alexander, C. (2021, Dec 21). SoFi vs. Prosper Personal Loans: How they compare. Nerd Wallet
- Kim, B. (2022, Dec 15). Margill Pacific Tour. Margill.com
- Millerbernd, A. (2022, Sep 19). Avant Personal Loans: 2022 Review. Nerd Wallet
- G2 (2022, Jan 1). Loandisk Review. G2.com
- Treece, K. (2022, Dec 2). Upgrade Personal Loans Review. Forbes
- Frankel, L. (2022, Aug 26). Credible Personal Loans Review. Finance Buzz
- Featured Image by John Schnobrich
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S.K. Gupta
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