Arthur Levitt, the chairman of the Securities and Exchange Commission from 1993 to 2001, will become an adviser to the marketplace lender Social Finance.
Levitt is expected to advise SoFi on regulatory issues. His appointment comes at a time when the rapidly growing marketplace lending business faces increasing scrutiny in Washington.
“We’re confident that his experience will benefit SoFi and the marketplace lending industry
overall as we navigate an increasingly complex regulatory environment,” SoFi Chief Executive Mike Cagney said in a press release.
San Francisco-based SoFi, which launched in 2011, offers student loans, personal loans and mortgages, and targets a higher-earning cohort than many competitors in the marketplace lending sector.
The privately held firm reportedly raised roughly $1 billion in equity over the summer, bringing its valuation to around $4 billion. SoFi has also surpassed $4 billion in total loans originated, according to the company.
Levitt acts as an adviser to numerous financial technology firms, including BitPay, a bitcoin processor, and Affirm, which works with online merchants to offer credit to their customers. He also serves on the boards of Bloomberg LP and Motif Investing.