SoFi

Social Finance's online borrowers are defaulting at higher rates than underwriters for one of its bond deals had expected, the latest sign that an industry that hoped to upend banking is now getting tripped up by bad loans.

The San Carlos, Calif., firm is following a similar blueprint as other online lenders — launching with a particular loan product, refining its algorithms, and then seeking to expand into other corners of consumer finance.

The rise in home values is good news for homeowners looking to tap the equity in their homes to pay down debt or make big purchases, but some consumer groups fear it could lead to a new wave of loan defaults.

The San Francisco-based online lender will soon begin selling refinanced student loans through Promontory’s member network.

Hong Kong and Singapore have long been economic crossroads. China and India are economies with vast populations. And Shenzhen is bursting with innovative creativity. All of these contribute to the Asian fintech market being far ahead in adoption and ecosystem creation.

The deal marks a milestone in SoFi’s evolution into a private bank for millennials, but it won’t solve the challenges of the alternative lender’s funding model.

Arkadi Kuhlmann, the founder and CEO of the neobank Zenbanx who pioneered branchless banking at ING Direct, explains why he stopped pursuing a bank charter and made a deal with Social Finance.

The acquisition should allow the San Francisco-based online lender SoFi to fulfill a long-standing goal: offering a deposit account to its young, upwardly mobile customers.