How Much Bigger Could SoFi's Lending Business Get? You Might Be Surprised

Core Insights - SoFi reported a record loan origination of $10.5 billion in the fourth quarter, marking its highest quarterly total ever, indicating strong growth in its lending business [1] - The company sees a multi-trillion-dollar opportunity in its lending business, focusing on personal, student, and home loans [2] Personal Loans - Personal loans accounted for approximately 71% of the loans originated in the fourth quarter, with the market size estimated between $100 billion and $200 billion [3] - The CEO highlighted a significant opportunity in addressing nearly $1 trillion of prime revolving credit card debt that could be refinanced at lower rates [4] Student Loans - SoFi's student loan volume has more than doubled since 2023, driven by the end of the federal student loan payment pause, primarily through refinancing [4] - A potential 25% increase in the addressable market opportunity of $400 billion is anticipated if interest rates decrease by 50 basis points [4] Home Loans - Home loan volume grew by 95% year-over-year in the fourth quarter, reaching an annualized pace of about $4.5 billion [5] - The U.S. homebuyer market typically involves several trillion dollars in purchase mortgages, with additional potential in home equity and refinancing loans as interest rates decline [5][6] - SoFi aims to cross-sell refinancing loans to its existing members, noting that about 90% of its members with home loans have them with other institutions, positioning the company favorably as rates decrease [6]