Online lender SoFi is changing course, according to an interview with Bloomberg. The company, which promised to go public back in 2015, now says it’s postponing a public offering. Instead it’s going to spend more time fleshing out its products line and supporting fledglings like its wealth management services. The pushback may also be due to a decline in appetite for online lenders.
Recent problems at Lending Club, an early pioneer of online lending, may have soured investor interest. Both Lending Club and On Deck Capital, another digital loan service, have seen their stock prices decline since debuting on the market. As further evidence of the waning interest in fintech overall, Venture Capital funding for the sector in Q3 is down for the year 52%, according to CBInsights. SoFi itself is still in the throes of trying to close of $500 million round, according to Bloomberg. RR