Can SoFi’s demographic-oriented approach really work? How?

« Previous Page
0
0

Startup SoFi has raised — wait for it — $1.38 billion of venture funding to date. That’s a lot o’ funding.

I’ve wondered, what it is about SoFi that merits such an investment? Yes, it is a lending intensive business — the startup launched in 2011 by offering student loan refis. But what’s the technology in that?

Last week, Nino Fanlo, the company’s president and CFO, presented in New York the company’s vision for the future. Essentially, SoFi is not out to create new technology or discover a new business model based on IT innovation. Rather, its “thing” is offering (relatively) standardfare financial services to a particular demographic: urban professionals. Think of it as the ag bank of McKinsey.

On the surface, I wonder whether this can work. Is all you need to get $1.38 billion of funding a demographic? Anyone willing to fork over that amount if I start making personal loans to florists?

Or, maybe SoFi’s demographic approach is spot on? Banks certainly have rarely exhibited an ability to target a demographic beyond the blunt-knife of age. Those that have been able to target demographics even slightly — Navy FCU and USAA come to mind — have found sustainable growth.

So what’s the verdict? Can SoFi win just by targeting urban professionals?

Marked as spam
Posted by (Questions: 10, Answers: 4)
Asked on September 13, 2016 12:40 pm
465 views
Are you interested in a Loan? we offer all kinds of financial assistance to all individuals \”Business Personal Loan , investment Loan,home consolidation Loan, debt Loan and company loan worldwide. Our interest rate is 3% per year. we also render financial advice to our clients.if you have any good project or you want to start up a business and you need loan to finance it, just contact us immediately so that we can discuss, sign agreement and then finance your project or business for you. Kindly contact us today for all your financial needs. contact us via E-mail: manojyidi@gmail.com Thanks Sir Manoj Yidi Excelsior Investors Finance Group Email:manojyidi@gmail.com Phone Number:+359878537212
(Sir Manoj Yidi at October 30, 2016 3:08 pm)
Add comment
« Previous Page