SOFI TECHNOLOGIES, INC., 10-K filed on 3/1/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2021
Feb. 15, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39606    
Entity Registrant Name SoFi Technologies, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 98-1547291    
Entity Address, Address Line One 234 1st Street    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94105    
City Area Code 855    
Local Phone Number 456-7634    
Title of 12(b) Security Common stock, $0.0001 par value per share    
Trading Symbol SOFI    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Smaller Reporting Company false    
Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Entity Public Float     $ 10.0
Entity Common Stock, Shares Outstanding   828,591,590  
Documents Incorporated by Reference Portions of the Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference in Part III. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended December 31, 2021.    
Entity Central Index Key 0001818874    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.0.1
Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location San Francisco, California
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents $ 494,711 $ 872,582
Restricted cash and restricted cash equivalents [1] 273,726 450,846
Investments in available-for-sale securities (amortized cost of $195,796 and $0, respectively) 194,907 0
Loans [1],[2] 6,068,884 4,879,303
Servicing rights 168,259 149,597
Securitization investments 374,688 496,935
Equity method investments 19,739 107,534
Property, equipment and software 111,873 81,489
Goodwill 898,527 899,270
Intangible assets 284,579 355,086
Operating lease right-of-use assets 115,191 116,858
Related party notes receivable 0 17,923
Other assets 171,242 136,076
Total assets 9,176,326 8,563,499
Liabilities:    
Accounts payable, accruals and other liabilities [1] 298,164 452,909
Operating lease liabilities 138,794 139,796
Debt [1] 3,947,983 4,798,925
Residual interests classified as debt [1] 93,682 118,298
Total liabilities 4,478,623 5,509,928
Commitments, guarantees, concentrations and contingencies (Note 16)
Temporary equity:    
Redeemable preferred stock [3] 320,374 3,173,686
Permanent equity (deficit):    
Common stock [4] 83 0
Additional paid-in capital 5,561,831 579,228
Accumulated other comprehensive loss (1,471) (166)
Accumulated deficit (1,183,114) (699,177)
Total permanent equity (deficit) 4,377,329 (120,115)
Total liabilities, temporary equity and permanent equity (deficit) $ 9,176,326 $ 8,563,499
[1] Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 6.
[2] As of December 31, 2021 and 2020, includes loans measured at fair value of $5,952,972 and $4,859,068, respectively, and loans measured at amortized cost of $115,912 and $20,235, respectively. See Note 1, Note 5, Note 8 and Note 9.
[3] Redemption amounts are $323,400 and $3,210,470 as of December 31, 2021 and 2020, respectively.
[4] Includes 100,000,000 non-voting common shares authorized and no non-voting common shares issued and outstanding as of December 31, 2021, and 8,714,000 shares authorized and 2,406,549 shares outstanding as of December 31, 2020. See Note 12 for additional information.
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investments in available-for-sale securities, amortized cost $ 195,796 $ 0
Loans, allowance for credit loss 7,037 219
Other assets, allowance for credit loss $ 2,292 $ 562
Redeemable preferred stock, par value (in dollars per share) $ 0.00 $ 0.00
Redeemable preferred stock, shares authorized (in shares) 100,000,000 570,562,965
Redeemable preferred stock, shares issued (in shares) 3,234,000 469,150,522
Redeemable preferred stock, shares outstanding (in shares) 3,234,000 469,150,522
Common stock, par value (in dollars per share) $ 0.00 $ 0.00
Common stock, shares authorized (in shares) 3,100,000,000 789,167,056
Common stock, shares issued (in shares) 828,154,462 115,084,358
Common stock, shares outstanding (in shares) 828,154,462 115,084,358
Loans receivable at fair value $ 5,952,972 $ 4,859,068
Redemption amount $ 323,400 $ 3,210,470
Nonvoting Common Stock    
Common stock, shares authorized (in shares) 100,000,000 8,714,000
Common stock, shares issued (in shares) 0  
Common stock, shares outstanding (in shares) 0 2,406,549
v3.22.0.1
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest income      
Loans $ 337,862 $ 330,353 $ 570,466
Securitizations 14,109 24,031 23,179
Related party notes 211 3,189 3,338
Other 2,838 5,964 11,210
Total interest income 355,020 363,537 608,193
Interest expense      
Securitizations and warehouses 90,485 155,150 268,063
Corporate borrowings 10,345 27,974 4,962
Other 1,946 2,482 5,334
Total interest expense 102,776 185,606 278,359
Net interest income 252,244 177,931 329,834
Noninterest income      
Loan origination and sales 497,626 371,323 299,265
Securitizations (14,862) (70,251) (199,125)
Servicing (2,281) (19,426) 8,486
Technology platform fees 191,847 90,128 0
Other 60,298 15,827 4,199
Total noninterest income (loss) 732,628 387,601 112,825
Total net revenue 984,872 565,532 442,659
Noninterest expense      
Technology and product development 276,087 201,199 147,458
Sales and marketing 426,875 276,577 266,198
Cost of operations 256,980 178,896 116,327
General and administrative 498,534 237,381 152,275
Provision for credit losses 7,573 0 0
Total noninterest expense 1,466,049 894,053 682,258
Loss before income taxes (481,177) (328,521) (239,599)
Income tax (expense) benefit (2,760) 104,468 (98)
Net loss (483,937) (224,053) (239,697)
Other comprehensive loss      
Unrealized losses on available-for-sale securities, net (1,351) 0 0
Foreign currency translation adjustments, net 46 (145) (9)
Total other comprehensive loss (1,305) (145) (9)
Comprehensive loss $ (485,242) $ (224,198) $ (239,706)
Loss per share (Note 17)      
Loss per share - basic (in dollars per share) $ (1.00) $ (4.30) $ (4.02)
Loss per share - diluted (in dollars per share) $ (1.00) $ (4.30) $ (4.02)
Weighted average common stock outstanding - basic (in shares) 526,730,261 73,851,108 65,619,361
Weighted average common stock outstanding - diluted (in shares) 526,730,261 73,851,108 65,619,361
v3.22.0.1
Consolidated Statements of Changes in Temporary Equity and Permanent Equity (Deficit) - USD ($)
$ in Thousands
Total
Previously reported
Retroactive conversion of shares due to Business Combination
Common Stock
Common Stock
Previously reported
Common Stock
Retroactive conversion of shares due to Business Combination
Additional Paid-In Capital
Additional Paid-In Capital
Previously reported
Treasury Stock
Treasury Stock
Previously reported
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Previously reported
Accumulated Deficit
Accumulated Deficit
Previously reported
Beginning balance (in shares) at Dec. 31, 2018       71,259,580 40,887,985 30,371,595                
Beginning balance at Dec. 31, 2018 $ (68,422) $ (68,422)         $ 157,647 $ 157,647 $ (2,914) $ (2,914) $ (12) $ (12) $ (223,143) $ (223,143)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Share-based compensation expense 60,936           60,936              
Equity-based payments to non-employees (in shares)       76,084                    
Equity-based payments to non-employees 483           483              
Vesting of RSUs (in shares)       7,698,481                    
Stock withheld related to taxes on vested RSUs (in shares)       (3,272,192)                    
Stock withheld related to taxes on vested RSUs (21,411)           (21,411)              
Exercise of common stock options (in shares)       3,276,387                    
Exercise of common stock options 7,844           7,844              
Common stock purchases (in shares)       (1,774,479)                    
Common stock purchases (8,804)                       (8,804)  
Redeemable preferred stock dividends (23,923)           (23,923)              
Constructive retirement of treasury shares (in shares)       (8,223,111)                    
Constructive retirement of treasury shares 0               2,914       (2,914)  
Note receivable issuance to stockholder, inclusive of interest (61,214)           (61,214)              
Note receivable payments from stockholder, inclusive of interest 15,155           15,155              
Net loss (239,697)                       (239,697)  
Foreign currency translation adjustments, net of tax (9)                          
Other comprehensive loss, net (9)                   (9)      
Ending balance (in shares) at Dec. 31, 2019       69,040,750                    
Ending balance at Dec. 31, 2019 $ (339,062)           135,517   $ 0   (21)   (474,558)  
Temporary equity, beginning balance (in shares) at Dec. 31, 2018 370,224,316 199,355,696 170,868,620                      
Temporary equity, beginning balance at Dec. 31, 2018 $ 1,890,554 $ 1,890,554                        
Increase (Decrease) in Temporary Equity [Roll Forward]                            
Issuance of redeemable preferred stock (in shares) 33,946,449                          
Issuance of redeemable preferred stock $ 551,577                          
Preferred stock issuance costs $ (2,400)                          
Temporary equity, ending balance (in shares) at Dec. 31, 2019 404,170,765                          
Temporary equity, ending balance at Dec. 31, 2019 $ 2,439,731                          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Share-based compensation expense 99,870           99,870              
Equity-based payments to non-employees (in shares)       130,710                    
Equity-based payments to non-employees 908           908              
Vesting of RSUs (in shares)       11,528,031                    
Stock withheld related to taxes on vested RSUs (in shares)       (4,431,964)                    
Stock withheld related to taxes on vested RSUs (31,259)           (31,259)              
Exercise of common stock options (in shares)       2,039,000                    
Exercise of common stock options 3,781           3,781              
Issuance of common stock in acquisition (in shares)       1,919,356                    
Issuance of common stock in acquisition 15,565           15,565              
Vested stock options assumed in acquisition 32,197           32,197              
Common stock purchases (in shares)       (114,819)                    
Common stock purchases (566)                       (566)  
Redeemable preferred stock dividends (40,536)           (40,536)              
Note receivable issuance to stockholder, inclusive of interest (1,764)           (1,764)              
Note receivable payments from stockholder, inclusive of interest 47,823           47,823              
Preferred stock redemption (52,658)           (52,658)              
Issuance of common stock (in shares)       34,973,294                    
Issuance of common stock 369,840           369,840              
Common stock issuance costs (56)           (56)              
Net loss (224,053)                       (224,053)  
Foreign currency translation adjustments, net of tax (145)                          
Other comprehensive loss, net $ (145)                   (145)      
Ending balance (in shares) at Dec. 31, 2020 115,084,358     115,084,358                    
Ending balance at Dec. 31, 2020 $ (120,115)     $ 0     579,228       (166)   (699,177)  
Increase (Decrease) in Temporary Equity [Roll Forward]                            
Issuance of redeemable preferred stock (in shares) 91,921,020                          
Issuance of redeemable preferred stock $ 814,156                          
Preferred stock redemption (in shares) (26,941,263)                          
Preferred stock redemption $ (80,201)                          
Temporary equity, ending balance (in shares) at Dec. 31, 2020 469,150,522                          
Temporary equity, ending balance at Dec. 31, 2020 [1] $ 3,173,686                          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Share-based compensation expense 246,787           246,787              
Equity-based payments to non-employees (in shares)       18,058                    
Equity-based payments to non-employees 360           360              
Vesting of RSUs (in shares)       16,427,162                    
Vesting of RSUs 0     $ 2     (2)              
Stock withheld related to taxes on vested RSUs (in shares)       (2,405,588)                    
Stock withheld related to taxes on vested RSUs $ (42,644)           (42,644)              
Exercise of common stock options (in shares) 8,523,468     8,523,468                    
Exercise of common stock options $ 25,154           25,154              
Redeemable preferred stock dividends (40,426)           (40,426)              
Issuance of contingently issuable stock (in shares)       1,601,781                    
Conversion of common stock warrants issued in connection with Business Combination and PIPE Investment into permanent equity 185,762           185,762              
Issuance of common stock related to exercise of warrants (in shares)       15,193,668                    
Issuance of common stock related to exercise of warrants 95,047     $ 2     95,045              
Conversion of redeemable preferred stock warrants into permanent equity 161,775           161,775              
Conversion of redeemable preferred stock to common stock (in shares)       450,832,666                    
Conversion of redeemable preferred stock to common stock 2,702,569     $ 45     2,702,524              
Issuance of common stock in connection with Business Combination and PIPE Investment (in shares)       222,878,889                    
Issuance of common stock in connection with Business Combination and PIPE Investment 1,789,601     $ 22     1,789,579              
Costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment (27,539)           (27,539)              
Change in par for historical SoFi common stock 0     $ 12     (12)              
Purchase of capped calls (113,760)           (113,760)              
Net loss (483,937)                       (483,937)  
Foreign currency translation adjustments, net of tax 46                          
Other comprehensive loss, net $ (1,305)                   (1,305)      
Ending balance (in shares) at Dec. 31, 2021 828,154,462     828,154,462                    
Ending balance at Dec. 31, 2021 $ 4,377,329     $ 83     $ 5,561,831       $ (1,471)   $ (1,183,114)  
Increase (Decrease) in Temporary Equity [Roll Forward]                            
Cancellation of redeemable preferred stock related to a business combination (in shares) (83,856)                          
Cancellation of redeemable preferred stock related to a business combination $ (743)                          
Conversion of redeemable preferred stock to common stock (in shares) (450,832,666)                          
Conversion of redeemable preferred stock to common stock $ (2,702,569)                          
Repurchase of redeemable common stock (in shares) (15,000,000)                          
Repurchase of redeemable common stock $ (150,000)                          
Temporary equity, ending balance (in shares) at Dec. 31, 2021 3,234,000                          
Temporary equity, ending balance at Dec. 31, 2021 [1] $ 320,374                          
[1] Redemption amounts are $323,400 and $3,210,470 as of December 31, 2021 and 2020, respectively.
v3.22.0.1
Consolidated Statement of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating activities      
Net loss $ (483,937) $ (224,053) $ (239,697)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 101,568 69,832 15,955
Deferred debt issuance and discount expense 18,292 28,310 33,205
Share-based compensation expense 239,011 99,870 60,936
Equity-based payments to non-employees 360 908 483
Deferred income taxes 1,204 (104,504) 52
Equity method investment earnings 261 (4,314) (869)
Accretion of seller note interest expense 0 6,002 0
Fair value changes in residual interests classified as debt 22,802 38,216 17,157
Fair value changes in securitization investments (6,538) (13,919) (11,363)
Fair value changes in warrant liabilities 107,328 20,525 (2,834)
Fair value adjustment to related party notes receivable (169) 319 0
Other (5,085) 803 2,205
Changes in operating assets and liabilities:      
Originations and purchases of loans (13,500,706) (10,406,813) (11,579,679)
Proceeds from sales and repayments of loans 12,202,525 9,949,805 11,635,228
Other changes in loans (10,148) (58,743) 69,214
Servicing assets (18,662) 52,021 (35,913)
Related party notes receivable interest income 1,399 1,121 (2,670)
Other assets (10,700) (29,883) (18,171)
Accounts payable, accruals and other liabilities (9,022) 95,161 2,028
Net cash used in operating activities (1,350,217) (479,336) (54,733)
Investing activities      
Purchases of property, equipment, software and intangible assets (52,261) (24,549) (37,590)
Related party notes receivable issuances 0 (7,643) (9,050)
Proceeds from repayment of related party notes receivable 16,693 0 0
Purchases of available-for-sale investments (246,372) 0 0
Proceeds from sales of available-for-sale investments 52,742 0 0
Proceeds from maturities of available-for-sale investments 4,799 0 0
Purchases of non-securitization investments (22,000) (145) (3,608)
Proceeds from non-securitization investments 109,534 974 0
Proceeds from securitization investments 247,058 322,704 165,116
Acquisition of business, net of cash acquired 0 (32,392) 0
Net cash provided by investing activities 110,193 258,949 114,868
Financing activities      
Proceeds from debt issuances 9,521,314 10,234,378 12,458,120
Repayment of debt (10,429,176) (9,708,991) (12,826,085)
Payment of debt issuance costs (9,465) (16,443) (20,596)
Purchase of capped calls (113,760) 0 0
Taxes paid related to net share settlement of share-based awards (42,644) (31,259) (21,411)
Purchases of common stock (526) (40) (8,804)
Redemptions of redeemable common and preferred stock (282,859) 0 0
Proceeds from Business Combination and PIPE Investment 1,989,851 0 0
Payment of costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment (26,951) 0 0
Proceeds from stock option exercises 25,154 3,781 7,844
Proceeds from warrant exercises 95,047 0 0
Payment of redeemable preferred stock dividends (40,426) (40,536) (23,923)
Payment of deferred equity costs (56) 0 0
Finance lease principal payments (516) (489) 0
Note receivable issuance to stockholder 0 0 (58,000)
Note receivable principal repayments from stockholder 0 43,513 14,487
Proceeds from common stock issuances 0 369,840 0
Proceeds from redeemable preferred stock issuances 0 0 573,845
Payment of redeemable preferred stock issuance costs 0 0 (2,400)
Net cash provided by financing activities 684,987 853,754 93,077
Effect of exchange rates on cash and cash equivalents 46 (145) (9)
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents (554,991) 633,222 153,203
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 1,323,428 690,206 537,003
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 768,437 1,323,428 690,206
Reconciliation to amounts on consolidated balance sheets (as of period end)      
Cash and cash equivalents 494,711 872,582 499,486
Restricted cash and restricted cash equivalents 273,726 [1] 450,846 [1] 190,720
Total cash, cash equivalents, restricted cash and restricted cash equivalents 768,437 1,323,428 690,206
Supplemental cash flow information      
Interest paid 94,795 129,131 224,916
Income taxes paid, net 1,759 529 8
Supplemental non-cash investing and financing activities      
Securitization investments acquired via loan transfers 118,274 151,768 351,254
Non-cash property, equipment, software and intangible asset additions 1,930 358 15,247
Available-for-sale investments securities purchased but unpaid 7,457 0 0
Share-based compensation capitalized related to internally-developed software 7,776 0 0
Third party warrants acquired with earnings initially deferred 964 0 0
Deferred debt issuance costs accrued but unpaid 925 1,600 0
Costs directly attributable to the issuance of common stock paid in 2020 588 0 0
Reduction to temporary equity associated with purchase price adjustments 743 0 0
Conversion of temporary equity into permanent equity in conjunction with the Business Combination 2,702,569 0 0
Deconsolidation of residual interests classified as debt 0 101,718 97,928
Deconsolidation of securitization debt 0 770,918 1,366,992
Seller note issued in acquisition 0 243,998 0
Redeemable preferred stock issued in acquisition 0 814,156 0
Redeemable preferred stock warrants accounted for as liabilities 0 0 22,268
Common stock options assumed in acquisition 0 32,197 0
Issuance of common stock in acquisition 0 15,565 0
Finance lease right-of-use assets acquired 0 15,100 0
Property, equipment and software acquired in acquisition 0 2,026 0
Debt assumed in acquisition 0 5,832 0
Issuance of residual interests classified as debt as consideration for loan additions 0 0 116,906
Accrued but unpaid deferred equity costs 0 56 0
Redeemed but unpaid common stock 0 526 0
Redeemed but unpaid redeemable preferred stock $ 0 $ 132,859 $ 0
[1] Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 6.
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Summary of Significant Accounting Policies and New Accounting Standards Organization, Summary of Significant Accounting Policies and New Accounting Standards
Organization
Social Finance, Inc. (“Social Finance”) entered into a merger agreement (the “Agreement”) with Social Capital Hedosophia Holdings Corp. V (“SCH”) on January 7, 2021. The transactions contemplated by the terms of the Agreement were completed on May 28, 2021 (the “Closing”), in conjunction with which SCH changed its name to SoFi Technologies, Inc. (hereafter referred to, collectively with its subsidiaries, as “SoFi”, the “Company”, “we”, “us” or “our”), unless the context otherwise requires). The transactions contemplated in the Agreement are collectively referred to as the “Business Combination”. See Note 2 for additional information on the Business Combination.
SoFi is a financial services platform that was founded in 2011 to offer an innovative approach to the private student loan market by providing student loan refinancing options. The Company conducts its business through three reportable segments: Lending, Technology Platform and Financial Services. Since its founding, SoFi has expanded its lending strategy to offer home loans, personal loans and credit cards. The Company has also developed non-lending financial products, such as money management and investment product offerings, and has also leveraged its financial services platform to empower other businesses. Through strategic acquisitions, the Company expanded its investment product offerings into Hong Kong, and also operates as a platform-as-a-service for a variety of financial service providers, providing the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, account funding, direct deposit, authorizations and processing, payments functionality and check account balance features. For additional information on these business combinations, see Note 2. For additional information on our reportable segments, see Note 18.
Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).
As a result of the Business Combination completed on May 28, 2021, prior period share and per share amounts presented in the accompanying consolidated financial statements and these related notes have been retroactively converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. See Note 2 for additional information.
Use of Judgments, Assumptions and Estimates
The preparation of our consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions.
Business Combinations
We account for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with the principles outlined in ASC 820, Fair Value Measurement (“ASC 820”). The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in our results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred.
During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the consolidated statements of operations and comprehensive income (loss).
The Business Combination with SCH during the year ended December 31, 2021 was accounted for as a reverse recapitalization. See Note 2 for additional information.
Consolidation of Variable Interest Entities
We enter into arrangements in which we originate loans, establish a special purpose entity (“SPE”), and transfer loans to the SPE. We retain the servicing rights of those loans and hold additional interests in the SPE. We evaluate each such arrangement to determine whether we have a variable interest. If we determine that we have a variable interest in an SPE, we then determine whether the SPE is a VIE. If the SPE is a VIE, we assess whether we are the primary beneficiary of the VIE, such that we must consolidate the VIE on our consolidated balance sheets. To determine if we are the primary beneficiary, we identify the most significant activities and determine who has the power over those activities, and who absorbs the variability in the economics of the VIE. As of December 31, 2021 and 2020, we had 13 and 15 consolidated VIEs, respectively, on our consolidated balance sheets. Refer to Note 6 for more details regarding our consolidated VIEs.
We periodically reassess our involvement with each VIE in which we have a variable interest. We monitor matters related to our ability to control economic performance, such as management of the SPE and its underlying loans, contractual changes in the services provided, the extent of our ownership, and the rights of third parties to terminate us as the VIE servicer. In addition, we monitor the financial performance of each VIE for indications that we may or may not have the right to absorb benefits or the obligation to absorb losses associated with variability in the financial performance of the VIE that could potentially be significant to that VIE, which we define as a variable interest of greater than 10%.
A significant change to the pertinent rights of us or other parties, or a significant change to the ranges of possible financial performance outcomes used in our assessment of the variability of cash flows due to us, could impact the determination of whether or not a VIE should be consolidated in future periods. VIE consolidation and deconsolidation may lead to increased volatility in our financial results and impact period-over-period comparability. Our maximum exposure to loss as a result of our involvement with consolidated VIEs is limited to our investment, which is eliminated in consolidation. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in consolidated VIEs.
Fair Value Measurements
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-level fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three levels are defined as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.
•Level 2 — Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or observable inputs other than quoted prices.
•Level 3 — Unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability.
A financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Instruments are categorized in Level 3 of the fair value hierarchy based on the significance of unobservable factors in the overall fair value measurement. As a result, the related gains and losses for assets
and liabilities within the Level 3 category presented in Note 9 may include changes in fair value that are attributable to both observable and unobservable inputs.
Transfers of Financial Assets
The transfer of an entire financial asset is accounted for as a sale if all of the following conditions are met:
•the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership;
•the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and
•the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset.
Loan sales are aggregated in the financial statements due to the similarity of both the loans transferred and servicing arrangements. The portion of our income relating to ongoing servicing and the fair value of our servicing rights are dependent upon the performance of the sold loans. We measure the gain or loss on the sale of financial assets as the net assets received from the sale less the carrying amount of the loans sold. The net assets received from the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including but not limited to cash, servicing assets, retained securitization investments and recourse obligations.
When securitizing loans, we employ a two-step transaction that includes the isolation of the underlying loans in a trust and the sale of beneficial interests in the trust to a bankruptcy-remote entity. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on our consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds received from these transfers are reported as liabilities, with related interest expense recognized over the life of the related secured borrowing.
As a component of the loan sale agreements, we make certain representations to third parties that purchase our previously-held loans, some of which include Federal National Mortgage Association (“FNMA”) repurchase requirements and all of which are standard in nature and do not constrain our ability to recognize a sale for accounting purposes. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans arising from these representations are accrued if probable and estimable. Pursuant to ASC 460, Guarantees (“ASC 460”), we establish a loan repurchase liability, which is based on historical experience and any current developments which would make it probable that we would buy back loans previously sold to third parties at the historical sales price. The loan repurchase liability is presented within accounts payable, accruals and other liabilities in the consolidated balance sheets, with the corresponding charges recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
Cash and Cash Equivalents
Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents.
Restricted Cash and Restricted Cash Equivalents
Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, funds reserved for committed stock purchases, and collection balances. These accounts are earmarked as restricted because these balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances.
Investments in Debt Securities
In the third quarter of 2021, we began investing in debt securities. The accounting and measurement framework for our investments in debt securities is determined based on the security classification. We classify investments in debt securities as
available-for-sale (“AFS”) when we do not have an intent and ability to hold the securities until maturity. We do not hold investments in debt securities for trading purposes. As of December 31, 2021, all of our investments in debt securities were classified as AFS. Hereafter, these investments are referred to as “investments in AFS debt securities”.
We record investments in AFS debt securities at fair value in our consolidated balance sheets, with unrealized gains and losses recorded, net of tax, as a component of accumulated other comprehensive income (loss) (“AOCI”). See Note 9 for additional information on our fair value estimates for investments in AFS debt securities. The amortized cost basis of our investments in AFS debt securities reflects the security’s acquisition cost, adjusted for amortization of premium or accretion of discount, and net of deferred fees and costs, collection of cash and charge-offs, as applicable. For purposes of determining gross realized gains and losses on AFS debt securities, the cost of securities sold is based on specific identification. We elected to present accrued interest for AFS debt securities within investments in available-for-sale securities in the consolidated balance sheets. Purchase discounts, premiums, and other basis adjustments for investments in AFS debt securities are generally amortized into interest income over the contractual life of the security using the effective interest method. However, premiums on certain callable debt securities are amortized to the earliest call date. Amortization of premiums and discounts and other basis adjustments for investments in AFS debt securities, as well as interest income earned on the investments, are recognized within interest income—other, and realized gains and losses on investments in AFS debt securities are recognized within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
As of December 31, 2021, our investments in AFS debt securities portfolio included agency to-be-announced (“TBA”) securities, which are securities that will be delivered under the purchase contract at a later date when the underlying security is issued. We made a policy election to account for contracts to purchase or sell existing securities on a trade-date basis and, as such, we record the purchase at inception of the contract on a gross basis, with the offsetting payable for the settlement amount recorded within accounts payable, accruals and other liabilities in the consolidated balance sheets.
In accordance with ASC 326-30, Financial Instruments—Credit Losses—Available-For-Sale Debt Securities, an investment in AFS debt security is considered impaired if its fair value is less than its amortized cost. If we determine that we have the intent to sell the impaired investment in AFS debt security, or if it is more likely than not that we will be required to sell the impaired investment in AFS debt security before recovery of its amortized cost, we recognize the full impairment loss reflecting the difference between the amortized cost (net of any prior recognized allowance) and the fair value of the investment in AFS debt security within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). If neither of the above conditions exists, we evaluate whether the impairment loss is attributable to credit-related or non-credit-related factors. Any impairment that is not credit-related is recognized in other comprehensive income (loss), net of taxes. See “Allowance for Credit Losses” below for the factors we consider in identifying credit-related impairment and the treatment of credit losses.
See Note 4 for additional information on our investments in AFS debt securities.
Loans
As of December 31, 2021, our loan portfolio consisted of personal loans, student loans and home loans, which are measured at fair value, and credit card loans, which are measured at amortized cost. As of December 31, 2020, we also had a commercial loan, which is further discussed below.
Loans Measured at Fair Value
Our personal loans, student loans and home loans are carried at fair value on a recurring basis and, therefore, all direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We elected the fair value option to measure these loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). Our consolidated loans are originated with the intention to sell to third-party purchasers and are, therefore, considered held for sale. Securitized loans are assets held by consolidated SPEs as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations.
Loans do not trade in an active market with readily observable prices. We determine the fair value of our loans using a discounted cash flow methodology, while also considering market data as it becomes available. We classify loans as Level 3 because the valuations utilize significant unobservable inputs.
We consider a loan to be delinquent when the borrower has not made the scheduled payment amount within one day after the scheduled payment date, provided the borrower is not in school or in deferment, forbearance or within an agreed-upon grace period. Loan deferment is a provision in the student loan contract that permits the borrower to defer payments while enrolled at least half time in school. During the deferment period, interest accrues on the loan balance and is capitalized to the loan when the loan enters repayment status, which begins when the student no longer qualifies for deferment.
Whereas deferment only relates to student loans, forbearance applies to student loans, personal loans and home loans. A borrower in repayment may generally request forbearance for reasons including a FEMA-declared disaster, unemployment, economic hardship or general economic uncertainty. Forbearance typically cannot exceed a total of 12 months over the life of the loan. If forbearance is granted, interest continues to accrue during the forbearance period and is capitalized to the loan when the borrower resumes making payments. At the conclusion of a forbearance period, the contractual monthly payment is recalculated and is generally higher as a result.
For personal loans and student loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. For home loans, delinquent loans are charged off after 180 days of delinquency or on the date of confirmed loss. For all loans, we stop accruing interest and reverse all accrued but unpaid interest on the date of charge-off. Additional information about our loans measured at fair value is included in Note 5 through Note 7, as well as Note 9.
Loans Measured at Amortized Cost
As of December 31, 2021, loans measured at amortized cost included credit card loans. We launched our credit card product in the third quarter of 2020, which was expanded to a broader market in the fourth quarter of 2020. During the fourth quarter of 2020, we also issued a commercial loan, which was repaid in January 2021. For loans measured at amortized cost, we present accrued interest within loans in the consolidated balance sheets.
Allowance for Credit Losses
Effective January 1, 2020, we adopted the provisions of Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, which requires upfront recognition of lifetime expected credit losses using a current expected credit loss model. As of December 31, 2021, the standard was applicable to (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii)  margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card loans, and (vi) investments in AFS debt securities. Our approaches to measuring the allowance for credit losses on the applicable financial assets are as follows:
Cash equivalents and restricted cash equivalents: Our cash equivalents and restricted cash equivalents are short-term in nature and of high credit quality; therefore, we determined that our exposure to credit losses over the life of these instruments was immaterial.
Accounts receivable from contracts with customers: Accounts receivable from contracts with customers as of the balance sheet dates are recorded at their original invoice amounts reduced by any allowance for credit losses. In accordance with the standard, we pool our accounts receivable, all of which are short-term in nature and arise from contracts with customers, based on shared risk characteristics to assess their risk of loss, even when that risk is remote. Certain of our historical accounts receivable balances did not have any write-offs. We use the aging method and historical loss rates as a basis for estimating the percentage of current and delinquent accounts receivable balances that will result in credit losses. We consider whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions warrant an adjustment to our historical loss experience. In applying such adjustments, we primarily evaluate changes in customer creditworthiness, current economic conditions, expectations of near-term economic trends and changes in customer payment terms and collection trends. For the measurement dates presented herein, given our methods of collecting funds, and that we have not observed meaningful changes in our customers’ payment behavior, we determined that our historical loss rates remained most indicative of our lifetime expected losses. We record the provision for credit losses on accounts receivable from
contracts with customers within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
When we determine that a receivable is not collectible, we write off the uncollectible amount as a reduction to both the allowance and the gross asset balance. Recoveries are recorded when received and credited to the provision for credit losses. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for credit losses being recognized in the period in which the change occurs. See Note 8 for a rollforward of the allowance for credit losses related to our accounts receivable.
Margin receivables: Our margin receivables, which are associated with margin lending services we offer to members through 8 Limited, are fully collateralized by the borrowers’ securities under collateral maintenance provisions, to which we regularly monitor adherence. Therefore, using the practical expedient in ASC 326-20-35-6, Financial Instruments — Credit Losses, we did not record expected credit losses on this pool of margin receivables, as the fair value of the underlying collateral is expected to exceed the amortized cost of the receivables.
Loan repurchase reserves: We issue financial guarantees related to certain non-agency loan transfers, which are subject to repurchase based on the occurrence of certain credit-related events within a specified amount of time following loan transfer, which does not exceed 90 days from origination. We estimate the contingent guarantee liability based on our historical repurchase activity for similar types of loans and assess whether adjustments to our historical loss experience are required based on current conditions and forecasts of future conditions, as appropriate, as our exposure under the guarantee is short-term in nature. See Note 16 for additional information on our guarantees.
Credit card loans: Our estimates of the allowance for credit losses as of December 31, 2021 and 2020 were $7,037 and $219, respectively. Accordingly, our estimate of the allowance for credit losses as of December 31, 2020 was immaterial to the consolidated financial statements. During the third quarter of 2021, we began to segment pools of credit card loans based on consumer credit score bands as measured using FICO scores obtained at the origination of the account (“origination FICO”) and also by delinquency status, which may be adjusted using other risk-differentiating attributes to model charge-off probabilities and the average life over which expected credit losses may occur for the credit card loans within each pool. As our historical internal risk tiers were assigned primarily based on origination FICO, our pooling of our historical assets did not materially change, nor would there have been a material impact on our historical provision for credit losses if we had utilized our current credit quality indicators when setting our historical provision. The pools estimate the likelihood of borrowers with similar origination FICO scores to pay credit obligations based on aggregate credit performance data. When necessary, we apply separate credit loss assumptions to assets that have deteriorated in credit quality such that they no longer share similar risk characteristics with other assets in the same FICO score band. We either estimate the allowance for credit losses on such non-performing assets individually based on individual risk characteristics or as part of a distinct pool of assets that shares similar risk characteristics. We reassess our credit card pools periodically to confirm that all loans within each pool continue to share similar risk characteristics.
We establish an allowance for the pooled credit card loans within each pool utilizing the risk model described above, which may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the probability-of-default and loss-given-default assumptions to the drawn balance of credit card loans within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We do not measure credit losses on the undrawn credit exposure, as such undrawn credit exposure is unconditionally cancellable by us. Management further considers an evaluation of overall portfolio credit quality based on indicators such as changes in our credit decisioning process, underwriting and collection management policies; the effects of external factors, such as regulatory requirements; general economic conditions; and inherent uncertainties in applying the methodology. We record the provision for credit losses on credit card loans within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive income (loss).
Credit card loans are reported as delinquent when they become 30 or more days past due. Credit card loans are charged off after 180 days of delinquency or on the date of the confirmed loss, at which time we stop accruing interest and reverse all accrued but unpaid interest through interest income as of such date. When a credit card loan is charged off, we record a reduction to the allowance and the credit card loan balance. When recovery payments are received against charged off credit card loans, we record a direct reduction to the provision for credit losses and resume the accrual of interest. Credit card receivables associated with alleged or potential fraudulent transactions are charged off through noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
There were no credit card loans on nonaccrual status as of December 31, 2021 and 2020. Credit card balances expensed due to alleged or potential fraudulent transactions, net of recoveries, during the year ended December 31, 2021 were $1,292. There were no such credit card loan charge offs during the year ended December 31, 2020. Accrued interest receivables written off during the year ended December 31, 2021 were $133, all of which were accrued during 2021. We did not have any accrued interest receivables written off during the year ended December 31, 2020. See Note 8 for a rollforward of the allowance for credit losses related to our credit card loans.
We elected to exclude interest on credit card loans from the measurement of our allowance, as our policy allows for accrued interest to be reversed in a timely manner. Further, we elected the practical expedient to exclude the accrued interest component of our credit card loans from the quantitative disclosures presented.
Credit Quality Indicators
The primary credit quality indicators that are important to understanding the overall credit performance of our credit card borrowers and their ability to repay are reflected by delinquency status and by credit performance expectations, as segmented by origination FICO bands as of December 31, 2021. The Company monitors these credit quality indicators on an ongoing basis.
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:
Delinquent Loans
Current30–59 Days60–89 Days
≥ 90 Days(1)
Total Delinquent Loans
Total Loans(2)
December 31, 2021
Credit card loans$115,356 1,893 1,683 2,658 6,234 $121,590 
December 31, 2020
Credit card loans$3,864 74 2 — 76 $3,940 
_____________________
(1)As of December 31, 2021, all of the credit card loans that were 90 days or more past due continued to accrue interest.
(2)Presented before allowance for credit losses of $7,037 and $219 as of December 31, 2021 and 2020, respectively, and excludes accrued interest of $1,359 and $2, respectively.
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) as of December 31, 2021 based on origination FICO. Generally, higher origination FICO score bands reflect higher anticipated credit performance than lower origination FICO score bands.
Origination FICODecember 31, 2021
≥ 800$10,016 
780 – 7998,624 
760 – 7799,976 
740 – 75913,581 
720 – 73918,358 
700 – 71922,579 
680 – 69921,736 
660 – 67914,044 
640 – 6591,969 
< 640707 
Total credit card loans$121,590 
Investments in AFS debt securities: An allowance for credit losses on our investments in AFS debt securities is required for any portion of impaired securities that is attributable to credit-related factors. For certain securities that are
guaranteed by the U.S. Treasury or government agencies, or sovereign entities of high credit quality, we concluded that there is no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses. For other investments in AFS debt securities, factors considered in evaluating credit losses include (i) adverse conditions related to the macroeconomic environment or the industry, geographic area or financial condition of the issuer, (ii) other credit indicators of the security, such as external credit ratings, and (iii) payment structure of the security. As of December 31, 2021, we concluded that the credit-related impairment was immaterial.
Credit-related impairment is recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding adjustment to noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive income (loss). Such credit losses are limited to the amount of the total impairment. We did not recognize an allowance for credit losses on impaired investments in AFS debt securities as of December 31, 2021.
Servicing Rights
Each time we enter into a servicing agreement, either in connection with transfers of our financial assets or in connection with a referral fulfillment arrangement we entered into during 2021 in which we are a sub-servicer for financial assets that we do not legally own, we determine whether we should record a servicing asset, servicing liability, or neither a servicing asset nor liability. We elected the fair value option to measure our servicing rights subsequent to initial recognition. We measure the initial and subsequent fair value of our servicing rights using a discounted cash flow methodology, which includes our contractual servicing fee, ancillary income, prepayment rate assumptions, default rate assumptions, a discount rate commensurate with the risk of the servicing asset or liability being valued, and an assumed market cost of servicing, which is based on active quotes from third-party servicers. For servicing rights retained in connection with loan transfers that do not meet the requirements for sale accounting treatment, there is no recognition of a servicing asset or liability.
Servicing rights in connection with transfers of financial assets are initially measured at fair value and recognized as a component of the gain or loss from sales of loans and the initial capitalization is reported within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). Servicing rights assumed from third parties for financial assets for which we are not the loan originator are initially measured at fair value and recognized within noninterest income—servicing in the consolidated statements of operations and comprehensive income (loss). Servicing rights are measured at fair value at each subsequent reporting date and changes in fair value are reported in earnings in the period in which they occur. Subsequent measurement changes for all servicing rights, including servicing fee payments and fair value changes, are included within noninterest income—servicing in the consolidated statements of operations and comprehensive income (loss). We elected the fair value option to measure our servicing rights to better align with the valuation of our transferred loans, which also tend to share a similar risk profile to the personal loan servicing we assume from third parties when we are not the loan originator. The loans are also impacted by similar factors, such as conditional prepayment rates. We consider the risk of the assets and the observability of inputs in determining the classes of servicing rights. We have three classes of servicing assets: personal loans, home loans and student loans. There is prepayment and delinquency risk inherent in our servicing rights, but we currently do not use any instruments to mitigate such risks.
See Note 9 for the key inputs used in the fair value measurements of our classes of servicing rights.
Securitization Investments
In Company-sponsored securitization transactions that meet the applicable criteria to be accounted for as a sale, we retain certain residual interests and asset-backed bonds. We measure these investments at fair value on a recurring basis. Gains and losses related to our securitization investments are reported within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). We determine the fair value of our securitization investments using a discounted cash flow methodology, while also considering market data as it becomes available. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us.
Our residual investments accrete interest income over the expected life using the effective yield method pursuant to ASC 325-40, Investments — Other, which reflects a portion of the overall fair value adjustment recorded each period on our residual investments. On a quarterly basis, we reevaluate the cash flow estimates over the life of the residual investments to determine if a change to the accretable yield is required on a prospective basis. Additionally, we record interest income associated with asset-backed bonds over the term of the underlying bond using the effective interest method on unpaid bond
amounts. Interest income on residual investments and asset-backed bonds is presented within interest income—securitizations in the consolidated statements of operations and comprehensive income (loss).
See Note 9 for the key inputs used in the fair value measurements of our residual investments and asset-backed bonds.
Equity Method Investments
In August 2021, we finalized the purchase of a 5% interest in Lower Holding Company (“Lower”) for $20,000, upon obtaining certain regulatory approvals. This equity method investment expanded our home loan origination fulfillment capabilities. Upon the closing of the transaction, we were granted a seat on Lower’s board of directors. Based on accounting guidance in ASC 323-10, Investments — Equity Method and Joint Ventures, we concluded that we had significant influence over the investee because of our representation on its board of directors. However, we did not control the investee and, therefore, accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g).
We recorded our portion of Lower equity method earnings within noninterest income—other in the consolidated statements of operations and comprehensive income (loss) and as an increase to the carrying value of our equity method investment in the consolidated balance sheets. We recognized equity method losses of $261 during the year ended December 31, 2021, which included basis difference amortization. The investment in Lower resulted in a basis difference of $1,769 that was attributable to the excess of the fair value of certain assets measured at amortized cost relative to book value, as well as definite-lived intangible assets. The basis difference is being amortized into income as an offset to equity method earnings over the weighted average life of the assets measured at amortized cost by Lower and the useful life of the separately-identified intangible assets. The amortization range is 1.3 to 5.0 years, and the weighted average amortization period is 3.3 years as of December 31, 2021. Our policy for amortizing separately-identified Lower assets was consistent with our policy for amortizing our assets of a similar type, and our basis for amortizing assets held by Lower at amortized cost was consistent with our experience with similar assets. We did not receive any distributions during the year ended December 31, 2021. We did not recognize any impairment related to our Lower investment during the year ended December 31, 2021.
On January 25, 2022, we relinquished our seat on Lower’s board of directors. As such, we no longer have significant influence over the investee and we will cease recognizing Lower equity investment income subsequent to that date.
In December 2018, we purchased a 16.7% interest in Apex Clearing Holdings, LLC (“Apex”) for $100,000, which represented our only significant equity method investment at the time. We recorded our portion of Apex equity method earnings within noninterest income—other in the consolidated statements of operations and comprehensive income (loss) and as an increase to the carrying value of our equity method investment in the consolidated balance sheets. We recognized equity method earnings on our investment in Apex of $4,442 and $795 during the years ended December 31, 2020 and 2019, respectively, which included basis difference amortization. During the year ended December 31, 2020, we invested an additional $145 in Apex, which increased our equity method investment ownership to 16.8% as of that date.
The seller of the Apex interest had call rights over our initial equity interest in Apex (“Seller Call Option”) from April 14, 2020 to December 14, 2023, which rights were exercised in January 2021. Therefore, we ceased recognizing Apex equity investment income subsequent to the call date. As of December 31, 2020, we measured the carrying value of the Apex equity method investment equal to the call payment that we received in January 2021 of $107,534. There was no equity method investment balance as of December 31, 2021. We did not receive any distributions during the years ended December 31, 2020 and 2019.
We also had an equity method investment balance related to a residential mortgage origination joint venture, which was discontinued in the third quarter of 2020, at which point we received a closing distribution of $974 related to the investment and we recognized an immaterial loss on the dissolution date. For the years ended December 31, 2020 and 2019, the earnings related to this joint venture were immaterial.
Property, Equipment and Software
All property, equipment and software are initially recorded at cost; repairs and maintenance are expensed as incurred. Computer hardware, furniture and fixtures, software, and finance lease right-of-use (“ROU”) assets are depreciated or amortized on a straight-line basis over the estimated useful life of each class of depreciable or amortizable assets (ranging from
2.5 to 7.0 years). Leasehold improvements are amortized over the shorter of the respective lease term or the estimated lives of the leasehold improvements.
Software includes both purchased and internally-developed software. Internally-developed software is capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Other costs are expensed as incurred.
The table below presents our major classes of depreciable and amortizable assets by function as of the dates indicated:
Gross
Balance		Accumulated Depreciation/AmortizationCarrying
Value
December 31, 2021
Computer hardware$16,864 $(8,583)$8,281 
Leasehold improvements39,726 (12,233)27,493 
Furniture and fixtures(1)
18,326 (7,748)10,578 
Software(2)
75,632 (22,996)52,636 
Finance lease ROU assets(3)
15,100 (2,876)12,224 
Construction in progress(4)
661 — 661 
Total$166,309 $(54,436)$111,873 
December 31, 2020
Computer hardware$13,494 $(6,037)$7,457 
Leasehold improvements36,725 (7,920)28,805 
Furniture and fixtures(1)
12,361 (5,251)7,110 
Software(2)
42,323 (18,587)23,736 
Finance lease ROU assets(3)
15,100 (719)14,381 
Total$120,003 $(38,514)$81,489 
_____________________
(1)Furniture and fixtures primarily include office equipment as well as other furniture and fixtures associated with SoFi Stadium.
(2)Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the year ended December 31, 2021, we capitalized $7,776 of share-based compensation related to internally-developed software, and we recognized associated amortization expense of $792. We did not capitalize any share-based compensation during the years ended December 31, 2020 and 2019.
(3)Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See Note 16 for additional information on our leases.
(4)Construction in progress as of December 31, 2021 relates to furniture and fixtures and computer hardware.

For the years ended December 31, 2021, 2020 and 2019, total depreciation and amortization expense associated with property, equipment and software, inclusive of the amortization of capitalized share-based compensation, was $31,061, $20,097 and $12,947, respectively.
We recognized property, equipment and software abandonment of $2,137 during the year ended December 31, 2019. There were no abandonments during the years ended December 31, 2021 and 2020. There were no impairments during any of the years presented. We had losses on computer hardware disposals of $164 during the year ended December 31, 2021.
Goodwill and Intangible Assets
Goodwill represents the fair value of an acquired business in excess of the fair value of the identified net assets acquired. Goodwill is tested for impairment annually or whenever indicators of impairment exist. We apply the provisions of ASU 2017-04, Simplifying the Test for Goodwill Impairment, to calculate goodwill impairment (if any) on at least an annual basis, which provides for an unconditional option to bypass the qualitative assessment.
Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Therefore, if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. Our annual impairment testing date is October 1.
Intangible assets as of December 31, 2021 included developed technology; customer-related contracts; trade names, trademarks and domain names; core banking infrastructure; and broker-dealer license and trading rights. Definite-lived intangible assets are straight-line amortized over their useful lives and reviewed for impairment annually and whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. We do not have any indefinite-lived intangible assets.
See Note 2 and Note 3 for further discussion of goodwill and intangible assets, including those recognized in connection with recent business acquisitions.
Leases
In accordance with ASC 842, Leases, which we began applying as of January 1, 2019, we determine if an arrangement is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. For our current office and non-office classes of operating leases, we elected the practical expedient to choose not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. For our current classes of finance leases, we did not elect to apply this practical expedient and, instead, separately identify and measure the non-lease components of the contracts. As an accounting policy election, we apply the short-term lease exemption practical expedient to any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that we are reasonably certain to exercise.
Operating leases are presented within operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Finance lease ROU assets are presented within property, equipment and software and finance lease liabilities are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. Operating and finance lease ROU assets represent our right to use an underlying asset for the lease term and operating and finance lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit borrowing rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
The operating lease ROU assets are increased by any prepaid lease payments and are reduced by any unamortized lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Base rent is subject to rent escalations on each annual anniversary from the lease commencement dates. Lease expense for lease payments, including any step rent provisions specified in the lease agreements, is recognized on a straight-line basis over the lease term and is allocated among the components of noninterest expense in the consolidated statements of operations and comprehensive income (loss). The finance lease ROU assets are depreciated on a straight-line basis over the estimated useful life of seven years. Interest expense on finance leases is recognized for the difference between the present value of the lease liabilities and the scheduled lease payments within interest expense—other in the consolidated statements of operations and comprehensive income (loss).
When a lease agreement is modified, we determine if the modification grants us the right to use an additional asset that is not included in the original lease contract and if the lease payments increase commensurate with the standalone price for the additional ROU asset. If both conditions are met, we account for the agreement as two separate contracts: (i) the original, unmodified contract and (ii) a separate contract for the additional ROU asset. If both conditions are not met, the modification is not evaluated as a separate contract. Instead, based on the nature of the modification, we (i) reassess the lease classification on the modification date under the modified terms, and (ii) use the modified lease payments and discount rate to remeasure the lease liability and recognize any difference between the new lease liability and the old lease liability as an adjustment to the ROU asset.
See Note 16 for additional information on our leases.
Derivative Financial Instruments
We enter into derivative contracts to manage future loan sale execution risk. We did not elect hedge accounting, as management’s hedging intentions are to economically hedge the risk of unfavorable changes in the fair value of our student loans, personal loans and home loans. Our derivative instruments used to manage future loan sale execution risk as of the balance sheet dates included interest rate futures, interest rate swaps, interest rate caps, and home loan pipeline hedges. We also had interest rate lock commitments (“IRLC”) and interest rate caps that were not related to future loan sale execution risk. The interest rate futures and home loan pipeline hedges are measured at fair value and categorized as Level 1 fair value assets and liabilities, as all contracts held are traded in active markets for identical assets or liabilities and quoted prices are accessible by us at the measurement date. The interest rate swaps and interest rate caps are measured at fair value and categorized as Level 2 fair value assets and liabilities, as all contracts held are traded in active markets for similar assets or liabilities and other observable inputs are available at the measurement date. IRLCs are categorized as Level 3 fair value assets and liabilities, as the fair value is highly dependent on an assumed loan funding probability.
In the past, we have also entered into derivative contracts to hedge the market risk associated with some of our non-securitization investments. We did not elect hedge accounting.
In addition, in conjunction with a loan sale agreement we entered into during 2018, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. This provision is referred to as the “purchase price earn-out”. As the purchaser maintains control of the transferred assets and retains the risk of loss, and the assets remain legally isolated from us, the transfer qualified for true sale accounting. We determined that the purchase price earn-out is a derivative asset. Therefore, the purchase price earn-out is measured at fair value on a recurring basis and is categorized as a Level 3 fair value asset, as the fair value is highly dependent on underlying loan portfolio performance. Historically, the purchase price earn-out value was immaterial.
Changes in derivative instrument fair values are recognized in earnings as they occur. Depending on the measurement date position, derivative financial instruments are presented within other assets or accounts payable, accruals and other liabilities in the consolidated balance sheets. Our derivative instruments are reported within net cash provided by (used in) operating activities in the consolidated statements of cash flows.
The following table presents the gains (losses) recognized on our derivative instruments during the years indicated:
Year Ended December 31,
202120202019
Derivative contracts to manage future loan sale execution risk(1)(2)
$49,090 $(54,829)$(24,803)
IRLCs(1)
(11,861)14,530 916 
Interest rate caps(1)
(193)— — 
Purchase price earn-out(1)
9,312 — — 
Special payment(3)
(21,181)— — 
Third party warrants(4)
573 — — 
Derivative contracts to manage market risk associated with non-securitization investments(5)
— 996 (1,151)
Total
$25,740 $(39,303)$(25,038)
_____________________
(1) Recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
(2) The loss recognized during the year ended December 31, 2020 was inclusive of a $22,269 gain on credit default swaps that were opened and settled during the year.
(3) In conjunction with the Business Combination, the Amended Series 1 Agreement amended the original special payment provision to provide for a one-time special payment to Series 1 preferred stockholders, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), as this feature was accounted for as an embedded derivative that was not clearly and closely
related to the host contract, and will have no subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity.
(4) Includes $273 recorded within noninterest income—other, $132 recorded within noninterest expense—cost of operations and $168 recorded within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party.
(5) Recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We did not have any such derivative contracts to hedge our non-securitization investments during the year ended December 31, 2021.
Certain derivative instruments are subject to enforceable master netting arrangements. Accordingly, we present our net asset or liability position by counterparty in the consolidated balance sheets. Additionally, since our cash collateral balances do not approximate the fair value of the derivative position, we do not offset our right to reclaim cash collateral or obligation to return cash collateral against recognized derivative assets or liabilities. The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated:
December 31, 2021December 31, 2020
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
Interest rate swaps$5,444 $— $— $(947)
Interest rate caps— (668)— — 
Home loan pipeline hedges117 (313)— (1,872)
Interest rate futures— — — (136)
Total, gross$5,561 $(981)$— $(2,955)
Less: derivative netting(117)117 — — 
Total, net(1)
$5,444 $(864)$— $(2,955)
_____________________
(1) As of December 31, 2021 and 2020, we had a cash collateral requirement of $299 and $1,746, respectively, related to these instruments.
The following table presents the notional amount of derivative contracts outstanding as of the dates indicated:
December 31,
20212020
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps$4,210,000 $1,475,000 
Home loan pipeline hedges421,000 371,000 
Interest rate caps405,000 — 
Interest rate futures— 3,400,000 
IRLCs(1)
357,529 630,277 
Interest rate caps(2)
405,000 — 
Total$5,798,529 $5,876,277 
_____________________
(1) Amounts correspond with home loan funding commitments subject to IRLC agreements.
(2) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.
While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure.
See Note 9 for additional information on our derivative assets and liabilities.
Residual Interests Classified as Debt
For residual interests related to consolidated securitizations, the residual interests held by third parties are presented as residual interests classified as debt in the consolidated balance sheets. We measure residual interests classified as debt at fair
value on a recurring basis. We record subsequent measurement changes in fair value in the period in which the change occurs within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). We determine the fair value of residual interests classified as debt using a discounted cash flow methodology, while also considering market data as it becomes available. We classify the residual interests classified as debt as Level 3 due to the reliance on significant unobservable valuation inputs.
We recognize interest expense related to residual interests classified as debt over the expected life using the effective yield method, which reflects a portion of the overall fair value adjustment recorded each period on our residual interests classified as debt. Interest expense related to residual interests classified as debt is presented within interest expense—securitizations and warehouses in the consolidated statements of operations and comprehensive income (loss). On a quarterly basis, we reevaluate the cash flow estimates to determine if a change to the accretable yield is required on a prospective basis.
See Note 9 for the key inputs used in the fair value measurements of residual interests classified as debt.
Fractional Shares
Through 8 Limited, which is a Hong Kong-based subsidiary, we have a “stock bits” feature that allows members with an 8 Limited investment account to purchase fractional shares in various companies. 8 Limited maintains control and risk over the stock inventory and, as such, must recognize on its balance sheet both the fraction of a share retained by the company and the fraction of a share owned by the member, with the latter also recorded as a payable to the member. The inventory is recorded at its fair value based on the closing price of the associated stock. As of December 31, 2021, the aggregate value of fractional shares owned by SoFi Hong Kong members was determined to be immaterial.
In our “stock bits” offering through our domestic SoFi Invest accounts, SoFi engages Apex as the clearing broker and, as such, does not retain control and risk over the stock inventory associated with fractional shares. Therefore, SoFi does not recognize the fractional shares owned by domestic SoFi Invest members on its consolidated balance sheets.
Borrowings and Financing Costs
We borrow from various financial institutions to finance our lending activities. Direct costs incurred in connection with financing, such as banker fees, origination fees and legal fees, are classified as deferred debt issuance costs. We capitalize these costs and report the amounts as a direct deduction from the carrying amount of the debt balance. Any difference between the stated principal amount of debt and the amount of cash proceeds received, net of debt issuance costs, is presented as a discount or premium. The capitalized debt issuance costs and the original issue discount/premium are amortized into interest expense over the expected life of the related financing agreements using the straight-line method for revolving facilities and the effective interest method for securitization debt and our senior convertible notes, which are further discussed below. Remaining unamortized fees are expensed immediately upon early extinguishment of the debt. In a debt modification for revolving debt, the initial issuance costs and any additional fees incurred as a result of the modification are deferred over the term of the new agreement, if the borrowing capacity of the revolving facility is increased. In the case that a modification results in a decrease in our borrowing capacity, any fees paid to the creditor and any third-party costs incurred are associated with the new arrangement and are, therefore, deferred and amortized over the term of the new arrangement. Unamortized deferred costs relating to the old arrangement at the time of the modification are expensed immediately in proportion to the decrease in borrowing capacity of the old arrangement. Any remaining unamortized deferred costs relating to the old arrangement are deferred and amortized over the term of the new arrangement.
The total accrued interest payable of $1,306 and $19,817 as of December 31, 2021 and 2020, respectively, was primarily related to interest associated with our borrowings and was presented within accounts payable, accruals and other liabilities in the consolidated balance sheets.
Convertible Senior Notes
In October 2021, we issued $1.2 billion aggregate principal amount of convertible senior notes due 2026 (the “Convertible Notes”). The Convertible Notes will mature on October 15, 2026, unless earlier repurchased, redeemed or converted. We will settle conversions by paying or delivering, at our election, cash, shares of our common stock or a combination of cash and shares of our common stock, based on the applicable conversion rate(s). The Convertible Notes will also be redeemable, in whole or in part, at our option at any time, and from time to time, on or after October 15, 2024 through on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the
principal amount of the Convertible Notes to be redeemed, plus accrued interest, if any, thereon to, but excluding, the redemption date, but only if certain liquidity conditions described in the indenture are satisfied and certain conditions are met with respect to the last reported sale price per share of our common stock prior to conversion. See Note 10 for more detailed disclosure of these term and features of the Convertible Notes.
We elected to evaluate each embedded feature of the arrangement individually. We concluded that each of the conversion rights, optional redemption rights, fundamental change make-whole provision and repurchase rights did not require bifurcation as derivative instruments under ASC 815, Derivatives and Hedging (“ASC 815”), which we will reevaluate each reporting period. The additional interest and special interest that accrue on the notes in the event of our failure to comply with certain registration or reporting requirements are required to be bifurcated from the host contract, as the reporting requirement triggering event is not clearly and closely related to the host convertible debt contract, and therefore we measured the contingent interest feature at fair value each reporting period. The value was determined to be immaterial; therefore, we accounted for the Convertible Notes wholly as debt, which was recognized on the settlement date. Accordingly, we allocated all debt issuance costs to the debt instrument on the basis of materiality.
In connection with the pricing of the Convertible Notes, we entered into privately negotiated capped call transactions with certain financial institutions, which are further discussed below.
Redeemable Preferred Stock
Immediately prior to the Business Combination, all shares of the Company’s outstanding shares of redeemable preferred stock, other than the Series 1 preferred stock, converted into shares of SoFi Technologies common stock. Series 1 preferred stock is classified in temporary equity, as it is not fully controlled by SoFi.
Foreign Currency Translation Adjustments
We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the consolidated statements of operations and comprehensive income (loss).
Accumulated Deficit
We purchase SoFi common stock from time to time and constructively retire the common stock. We record purchases of common stock as a reduction to accumulated deficit in the consolidated balance sheets.
Capped Call Transactions
We entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions (the “Capped Call Counterparties”). The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the Convertible Notes. The Capped Call Transactions are net purchased call options on our own common stock.
The Capped Call Transactions are separate transactions entered into by the Company with each of the Capped Call Counterparties, are not part of the terms of the Convertible Notes, and do not affect any holder’s rights under the Convertible Notes. Holders of the Convertible notes do not have any rights with respect to the Capped Call Transactions.
As the Capped Call Transactions are legally detachable and separately exercisable from the Convertible Notes, they were evaluated as freestanding instruments under ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). We concluded that the Capped Call Transactions meet the scope exceptions for derivative instruments under ASC 815. As such, the Capped Call Transactions meet the criteria for classification in equity and are included as a reduction to additional paid-in capital.
See Note 10 for additional information on the Capped Call Transactions.
Interest Income
We record interest income associated with loans measured at fair value over the term of the underlying loans using the effective interest method on unpaid loan principal amounts, which is presented within interest income—loans in the consolidated statements of operations and comprehensive income (loss). We also record accrued interest income associated with loans measured at amortized cost within interest income—loans. We stop accruing interest and reverse all accrued but unpaid interest at the time a loan charges off. Loans are returned to accrual status if the loans are brought to nondelinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in management’s judgment, will continue to make scheduled periodic principal and interest payments.
We also have interest income associated with our investments in AFS debt securities. See “Investments in Debt Securities” in this Note 1 for additional information.
During the years ended December 31, 2021, 2020 and 2019, related party interest income primarily arose from a note receivable we issued to a stockholder in 2019 that was repaid during 2020 and lending activities with Apex, our former equity method investee, which were settled in February 2021. See Note 15 for additional information. Other interest income is primarily earned on our bank balances and on member deposits with our member bank holding companies that enable our SoFi Money product.
Loan Origination and Sales Activities
We measure our student loans, home loans and personal loans at fair value and, therefore, all direct fees and costs related to the origination process are recognized in earnings as earned or incurred. Direct fees, which primarily relate to home loan originations, and direct loan origination costs are recorded within noninterest income—loan origination and sales and noninterest expense—cost of operations, respectively, in the consolidated statements of operations and comprehensive income (loss).
As part of our loan sale agreements, we may retain the rights to service sold loans. We calculate a gain or loss on the sale based on the sum of the proceeds from the sale and any servicing asset recognized, less the carrying value of the loans sold. Our gain or loss calculation is also inclusive of repurchase liabilities recognized at the time of sale.
For our credit card loans, direct loan origination costs are deferred in other assets on the consolidated balance sheets and amortized on a straight-line basis over the privilege period, which is 12 months, within interest income—loans in the consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2021, we amortized $1,451 of deferred costs into interest income and had a remaining balance of deferred costs of $3,422 within other assets as of December 31, 2021.
Loan Commitments
We offer a program whereby applicants can lock in an interest rate on an in-school loan to be funded at a later time. Applicants can exit the loan origination process up until the loan funding date. SoFi is obligated to fund the loan at the committed terms on the disbursement date if the borrower does not cancel prior to the loan funding date. The student loan commitments meet the scope exception under ASC 815 for issuers of commitments to originate non-mortgage loans. As the writer of the commitments, we elected the fair value option to measure our unfunded student loan commitments to align with the measurement methodology of our originated student loans. As such, our student loan commitments are carried at fair value on a recurring basis. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). We classify student loan commitments as Level 3 because the valuations are highly dependent upon a loan funding probability, which is an unobservable input.
Loan commitments also include IRLCs, whereby we commit to interest rate terms prior to completing the origination process for home loans. IRLCs are derivative instruments that are measured at fair value on a recurring basis. Given that a home loan origination is contingent on a plethora of factors, our IRLCs are inherently uncertain and unobservable. As such, we classify IRLCs as Level 3. See “Derivative Financial Instruments” in this Note 1 for additional information on our derivative instruments.
See Note 9 for the key inputs used in the fair value measurements of our loan commitments.
Revenue Recognition
In accordance with ASC 606, in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services.
Technology Platform Fees
Commencing in May 2020 with our acquisition of Galileo, we earn technology platform fees for providing an integrated platform-as-a-service for financial and non-financial institutions. Within our technology platform fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. Our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract. We had deferred revenues of $2,553 and $2,520 as of December 31, 2021 and 2020, respectively, which are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. During the years ended December 31, 2021 and 2020, we recognized revenue of $685 and $342, respectively, associated with deferred revenues within noninterest income—technology platform fees in the consolidated statements of operations and comprehensive income (loss).
Sales commissions: Capitalized sales commissions presented within other assets in the consolidated balance sheets, which are incurred in connection with obtaining a technology platform-as-a-service contract, were $678 and $527 as of December 31, 2021 and 2020, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the year ended December 31, 2021, commissions recorded within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss) were $3,302, of which $267 represented amortization of capitalized sales commissions. During the year ended December 31, 2020, commissions were $1,659, of which $185 represented amortization of capitalized sales commissions.
Payments to customers: Certain contracts include provisions for customer incentives, which may be payable up front or applied to future or past technology platform fees. Payments to customers reduce the gross transaction price, as they represent constraints on the revenues expected to be realized. Upfront customer incentives are recorded as prepaid assets and presented within other assets in the consolidated balance sheets, and are applied against revenue in the period such incentives are earned by the customer. Customer incentives for future technology platform fees are applied ratably against future Technology Platform activity in accordance with the contract terms to the extent that cumulative revenues with the customer, net of incentives, are positive. Any incentive in excess of cumulative revenues is expensed as a contract cost. Customer incentives for past technology platform fees are recorded as a reduction to revenue in the period incurred, subject to the same cumulative revenue constraints.
Payment Network Fees
In customer arrangements separate from our technology platform fees, we earn payment network fees, which primarily constitute interchange fees, for satisfying our performance obligation to enable transactions through a payment network as the sponsor of such transactions. Interchange fees, which are remitted by the merchant, are calculated by multiplying a set fee percentage (as stipulated by the debit card payment network) by the transaction volume processed through such network. Transaction volume and related fees payable to us for interchange and other network fees are reported to us on a daily basis. Therefore, there is no constrained variable consideration within a reporting period. Using the expected value method, we assign a 100% probability to the transaction price as calculated using actual transaction volume processed through the payment network.
Our performance obligation is completely satisfied once we successfully fulfill a requested transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with processed transaction volume representing the measure that faithfully depicts the transfer of our services. The value of our services is represented by the network fee rates, as stipulated by the applicable payment network.
In addition to payment network fees earned on our own branded cards, we also earn payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. In these arrangements, we have two performance obligations: i) performing card program services, and ii) performing transaction
card enablement services, for which we arrange for performance by the network associations and bank issuers to enable certain aspects of the transaction card process. The transaction price in these arrangements is largely dependent on network association guidelines and the program management economics are pooled, with the Company receiving a contractual share of payment network fees.
The payment network fees are determined based on the type and volume of monthly card program activity and, therefore, represent variable consideration, as such amounts are not known at contract inception. However, as payment network fees are settled on a monthly basis, the variable consideration within a reporting period is not constrained. We satisfy both performance obligations continuously throughout the contractual arrangements and our customers receive and consume the benefits simultaneously as we perform. Further, satisfaction of both performance obligations occurs within the same measurement period. As such, allocation of the transaction price between the performance obligations is not meaningful, as it would not impact the pattern of revenue recognition. Using the expected value method, we assign a 100% probability to the transaction price as calculated using actual monthly card program activity.
Our program management performance obligations are completely satisfied once we successfully enable and process transaction card activity. We measure our progress toward complete satisfaction of our performance obligations using the output method, with card program activity representing the measure that faithfully depicts the transfer of program management services. The value of our services is represented by the transaction fee rates, as stipulated by the network association guidelines.
In our payment network fee transactions, we act in the capacity of an agent due to our lack of pricing power and because we are not primarily responsible for fulfilling the transaction enablement performance obligation, and ultimately lack control over fulfilling the performance obligations to the customer. Therefore, we recognize revenue net of fees paid to other parties within the payment networks.
Referrals
We earn specified referral fees in connection with referral activities we facilitate through our platform.
In one type of referral arrangement, the referral fee is paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. As such, the third-party enterprise partners are our customers in these referral arrangements.
Our single performance obligation is to present referral leads to our enterprise partner customers. In some instances, the referral fee is calculated by multiplying a set fee percentage by the dollar amount of a completed transaction between our partners and their customers. In other instances, the referral fee represents the price per referral multiplied by the number of referrals (referred units) as measured by a consummated transaction between our partners and their customers.
As the transaction volume or referred units are not known at contract inception, these arrangements contain variable consideration. However, as referral fees are billed to, and collected directly from, our partners on a monthly basis, the variable consideration within a reporting period is not constrained. We recognize revenue at the time of a referral-based transaction by applying the expected value method, wherein we assign 100% probability to the transaction price as calculated using actual transaction volume or referred units.
We satisfy our performance obligation continuously throughout the contractual arrangements with our partners and our partners receive and consume the benefits simultaneously as we perform. Our referral fee performance obligation is completely satisfied once we provide referrals to our partners and there is a consummated transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with referred units or referred transaction volume representing the measure that faithfully depicts the transfer of referral services to our partners. The value of our services transferred to our partners is represented by the referral fee rate, as agreed upon at contract inception.
In this type of referral arrangement, we act in the capacity of a principal, as we are primarily responsible for fulfilling our referral promise to our enterprise customers, exhibit control, and have discretion in setting the price we charge to our enterprise customers. Therefore, we present our revenue on a gross basis.
Beginning in the third quarter of 2021, we entered into another type of referral arrangement whereby we earn referral fulfillment fees for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan
originator, which is our single performance obligation in the arrangement. Under the initial agreement, the referral fulfillment fee was determined as the lower of a fixed per-loan amount or the multiplication of a set fee percentage by the aggregate loan origination principal balance. Through amendments to the agreement executed during the fourth quarter of 2021, the referral fulfillment fee on each referred loan is determined as either of two fixed amounts based on the aggregate origination principal balance of the loan. In the event that a loan is determined to be ineligible and such loan becomes a charged-off loan, both as defined in the contract agreement (referred to as an “ineligible charged-off loan”), we must re-pay to the customer the outstanding principal amount plus all accrued but unpaid interest of the ineligible charged-off loan, as well as a pro rata amount of fees previously paid for the ineligible charged-off loan (referred to as the “referral fulfillment fee penalty”).
As the number and size of referred loans are not known at contract inception, this arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We elected to estimate the amount of variable consideration using the expected value method, wherein we evaluate the conditional probability of ineligible loan charge-offs and, thereby, estimate referral fulfillment fee penalties. This method is appropriate for our arrangement, as we have meaningful experience through our lending business in evaluating expected ineligible referrals. The revenue recognized using the expected value method reflects our estimated net referral fulfillment fees after adjusting for the estimated referral fulfillment fee penalty. Referral fulfillment fees are presented within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We recognize a liability within accounts payable, accruals and other liabilities in the consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $118 as of December 31, 2021.
We satisfy our performance obligation continuously throughout the contractual arrangement with our customer and our customer receives and consumes the benefits simultaneously as we perform. We completely satisfy our performance obligation each time we provide a loan referral and our customer purchases the underlying loan from the third-party loan originator. We apply the right-to-invoice practical expedient to recognize referral fulfillment fees, as our right to consideration corresponds directly with the value of the service received, as measured using the expected value method and application of the referral fulfillment fee rate. In this arrangement, we act in the capacity of a principal, as we are primarily responsible for fulfilling our referral obligation to our customer, we have risk of loss if the loans that comprise our referral fulfillment services do not meet the contractual eligibility standards, and we have discretion in setting the price we charge to our customer. Therefore, we present our revenue on a gross basis.
Enterprise Services
We earn specified enterprise services fees in connection with services we provide to enterprise partners.
In one type of enterprise services arrangement, we earn fees in connection with services we provide to enterprise partners to facilitate transactions for the benefit of their employees, such as 529 plan contributions or student loan payments, which represents our single performance obligation in the arrangements. Similar to our referral services, we agree on a rate per transaction with each of our customers, which represents variable consideration at contract inception. However, as enterprise service fees are billed to, and collected directly from, our partners on a monthly basis, the variable consideration within a reporting period is not constrained.
We satisfy our performance obligation to provide enterprise services continuously throughout our contractual arrangements with our enterprise partners. Our enterprise partners receive and consume the benefits of our enterprise services simultaneously as we perform. Our enterprise service performance obligation is completely satisfied upon completion of a transaction on behalf of our enterprise partners. For instance, we may facilitate student loan payments made by enterprise partners on behalf of their employees by directing those payments to the appropriate student loan servicer. Once the student loan servicer recognizes the payment, the transaction and our performance obligation are simultaneously complete. We measure our progress toward complete satisfaction of our performance obligation using the output method, with completed transaction requests representing the measure that faithfully depicts the transfer of enterprise services. The value of our enterprise services is represented by a negotiated fee, as agreed upon at contract inception. Our revenue is reported on a gross basis, as we act in the capacity of a principal, demonstrate the requisite control over the service, and are primarily responsible for fulfilling the performance obligation to our enterprise service customer.
Beginning in the second quarter of 2021, we entered into another type of enterprise services arrangement whereby we earn fees for providing advisory services in connection with helping operating companies successfully complete the business combination process, inclusive of obtaining the required shareholder votes. The amount of revenue is recorded on a gross basis
within noninterest income—other in the consolidated statements of operations and comprehensive income (loss), as we fully control the fulfillment of our performance obligation acting in the capacity of a principal. Out-of-pocket expenses associated with satisfying the performance obligation are recognized at the time the related revenue is recognized and presented as part of noninterest expense—general and administrative.
Equity Capital Markets Services
Beginning in the second quarter of 2021, we earned underwriting fees related to our membership in underwriting syndicates for initial public offerings (“IPOs”). The underwriting of securities is the only performance obligation in our underwriting agreements, and we recognize underwriting fees on the trade date. We are a principal in our underwriting agreements, because we demonstrate the requisite control over the satisfaction of the performance obligation through the assumption of underwriter liability for our designated share allotment. As such, we recognize revenue on a gross basis.
Beginning in the fourth quarter of 2021, we also earned dealer fees for providing dealer services in partnership with underwriting syndicates for IPOs. We are engaged to place IPO shares that are allocated to us by the underwriters with third-party investors for which we have received a confirmed order, which represents our only performance obligation in the arrangement. The amount of consideration to which we are entitled represents the selling concession (spread between our purchase price and the offer price, which are set by the underwriting syndicate), multiplied by the number of shares we placed in the IPO deal. The share allocation is ultimately determined by the underwriter. We recognize revenue on the trade date. We are an agent in this arrangement, as we do not share in any underwriting liability, do not bear risk of loss if shares remain unpurchased, and do not establish the price, which is set by the underwriting syndicate. As the amount of dealer fees recognized is reflective of the number of allocated shares we sold to third-party investors, we apply the right-to-invoice practical expedient.
We recognize equity capital markets services revenue, consisting of both underwriting fees and dealer fees, within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
Brokerage
We earn fees in connection with facilitating investment-related transactions through our platform, which constitutes our single performance obligation in the arrangements. Our performance obligation is determined by the specific service selected by the customer, such as brokerage transactions, share lending, digital assets transactions and exchange conversion. In certain brokerage transactions, we act in the capacity of a principal and earn negotiated fees based on the number and type of transactions requested by our customers. In our share lending arrangements and pay for order flow arrangements, we do not oversee the execution of the transactions, and ultimately lack requisite control, but benefit through a negotiated revenue sharing arrangement. Therefore, we act in the capacity of an agent and recognize revenue net of fees paid to satisfy the performance obligation. In our digital assets arrangements, our fee is calculated as a negotiated percentage of the transaction volume. In these arrangements, we act in the capacity of a principal and recognize revenue gross of the fees we pay to obtain the digital assets for access by our members. In our exchange conversion arrangements, we act in the capacity of a principal and earn fees for exchanging one currency for another.
As the investment-related transaction volume and type are not known at contract inception, these arrangements contain variable consideration. However, as our brokerage fees are settled on a monthly basis or sometimes daily basis, the variable consideration within a reporting period is not constrained. We recognize revenue at the time of an investment transaction by applying the expected value method, wherein we assign 100% probability to the transaction price as calculated using actual investment transaction activity.
Our brokerage performance obligation is completely satisfied upon completion of an investment-related transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with investment transaction activity representing the measure that faithfully depicts the transfer of brokerage services. The value of our brokerage services is represented by the transaction fees, as determined at the point of transaction.
We incur costs for clearing and processing services that relate to satisfied performance obligations within our brokerage arrangements. In accordance with ASC 340-40, Other Assets and Deferred Costs — Contracts with Customers, we expense these costs as incurred. Although certain of our commission costs qualify for capitalization, their amortization period is less than one year. Therefore, utilizing the practical expedient related to incremental costs of obtaining a contract, we expense
these costs as incurred. Additionally, we pay upfront account funding incentives to customers that are not tied to a contract period. Therefore, we expense these payments as incurred.
In the fourth quarter of 2021, we introduced a flat monthly platform fee that is charged to members associated with our 8 Limited business in Hong Kong. The fee is assessed at each month end on all members with at least one open 8 Limited brokerage account (with the exception of accounts for which the applicable fee exceeds the account’s net asset value at month end) regardless of the volume or frequency of trading activity during the month. The fee is deducted directly from the member’s primary brokerage account on the first day of the subsequent month. Our single performance obligation is to stand ready to provide the specific brokerage service selected by the member. As the number of members with open accounts that satisfy the net asset value threshold at any month end are not known at contract inception, this arrangement contains variable consideration. However, as the monthly platform fees are settled on a monthly basis, the variable consideration within a reporting period is not constrained. Our members simultaneously receive and consume the benefits of our platform throughout the month to which the fee applies. We apply the right-to-invoice practical expedient to recognize the monthly platform fee, as the amount to which we are entitled at month end corresponds to the value of our performance completed for the month.
Contract Assets
As of December 31, 2021 and 2020, accounts receivable, net associated with revenue from contracts with customers was $33,748 and $23,278, respectively, which were reported within other assets in the consolidated balance sheets.
Disaggregated Revenue
For the periods accounted for in accordance with ASC 606, the table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology platform fees and noninterest income—other in the consolidated statements of operations and comprehensive income (loss). There are no revenues from contracts with customers attributable to our Lending segment for any of the years presented.
Year Ended December 31,
202120202019
Financial Services
Referrals
$15,750 $5,889 $3,652 
Brokerage
22,733 3,470 84 
Payment network
10,642 2,433 660 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$54,666 $12,036 $4,520 
Technology Platform
Technology platform fees
$191,847 $90,128 $— 
Payment network
1,205 1,167 — 
Total
$193,052 $91,295 $— 
Total Revenue from Contracts with Customers
Technology platform fees
$191,847 $90,128 $— 
Referrals
15,750 5,889 3,652 
Payment network
11,847 3,600 660 
Brokerage
22,733 3,470 84 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$247,718 $103,331 $4,520 
Advertising, Sales and Marketing
Included within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss) are advertising production costs and advertising communication costs, as well as amounts paid to various affiliates to market our products. For the years ended December 31, 2021, 2020 and 2019, advertising totaled $183,106, $138,888 and $169,942, respectively. Advertising costs are expensed either as incurred or when the advertising takes place, depending on the nature of the advertising activity.
Expenses incurred by us related to member acquisition, including brand development, business development and direct member marketing expenses, are also presented within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss).
Technology and Product Development
Expenses incurred by us related to technology, product design and implementation, which includes compensation and benefits, are classified as noninterest expense—technology and product development in the consolidated statements of operations and comprehensive income (loss).
Loss Contingencies
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded in accounts payable, accruals and other liabilities in the consolidated balance sheets. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Such estimates are based on the best information available at the time. As additional information becomes available, we reassess the potential liability and record an estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. Due to the inherent uncertainties of loss contingencies, estimates may be different from the actual outcomes. With respect to legal proceedings, we recognize legal fees as they are incurred within noninterest expense—general and administrative in our consolidated statements of operations and comprehensive income (loss). See Note 16 for discussion of contingent matters.
Share-Based Compensation
Share-based compensation made to employees and non-employees, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), is measured based on the grant date fair value of the awards and is recognized as compensation expense typically on a straight-line basis over the period during which the share-based award holder is required to perform services in exchange for the award (the vesting period) for stock options and RSUs and on an accelerated attribution basis for each vesting tranche over the respective derived service period for PSUs. Share-based compensation expense is allocated among the components of noninterest expense in the consolidated statements of operations and comprehensive income (loss). We use the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) to estimate the fair value of stock options. RSUs are measured based on the fair values of the underlying stock on the dates of grant. We use a Monte Carlo simulation model to estimate the fair value of PSUs. We recognize forfeitures as incurred and, therefore, reverse previously recognized share-based compensation expense at the time of forfeiture. See Note 13 for further discussion of share-based compensation.
Comprehensive Loss
Comprehensive loss consists of net loss, unrealized gains or losses on our investments in AFS debt securities and foreign currency translation adjustments.
Income Taxes
We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. In assessing the realizability of deferred tax assets, management reviews all available positive and negative evidence. Valuation allowances are recorded to reduce deferred tax assets to the amount we believe is more likely than not to be realized.
We follow accounting guidance in ASC 740, Income Taxes, as it relates to uncertain tax positions, which provides information and procedures for financial statement recognition and measurement of tax positions taken, or expected to be taken, in tax returns. The tax effects from an uncertain tax position can be recognized in the financial statements only if the tax position would more likely than not be upheld on examination by the taxing authorities based on the merits of the tax position. Management is required to analyze all open tax years, as defined by the statute of limitations, for all jurisdictions. We accrue tax penalties and interest, if any, as incurred and recognize them within income tax (expense) benefit in our consolidated statements of operations and comprehensive income (loss).
Recently Adopted Accounting Standards
Facilitation of the Effects of Reference Rate Reform on Financial Reporting
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies the scope of Topic 848 for certain derivative instruments that use an interest rate for margining, discounting or contract price alignment. The new standard provides for optional expedients and other guidance regarding the accounting related to modifications of contracts, hedging relationships and other transactions affected by reference rate reform. ASU 2020-04 and ASU 2021-01 were both effective upon issuance and may be applied to contract modifications from January 1, 2020 through December 31, 2022.
The Alternative Reference Rates Committee (“ARRC”), a group of private market participants, was convened in the United States by the Federal Reserve Board and the Federal Reserve Bank of New York in cooperation with other United States agencies to promote the successful transition from United States Dollar LIBOR (“USD LIBOR”). The ARRC has selected the Secured Overnight Financing Rate (“SOFR”) as their recommended alternative to USD LIBOR. After December 31, 2021, the ICE Benchmark Administration Limited, the administrator of LIBOR (the “IBA”), ceased publishing the one-week and two-month USD LIBOR tenors. We do not have any exposure to these tenors. The IBA expects to continue to publish all remaining USD LIBOR tenors through June 30, 2023, with the overnight and 12-month tenors ceasing immediately thereafter and the one-month, three-month and six-month tenors becoming non-representative from that date.
We adopted the provisions of the standard in the fourth quarter of 2021 using the prospective method of adoption. We established a cross-functional project team to execute our company-wide transition away from USD LIBOR. In the fourth quarter of 2021, we began to use SOFR as the pricing index on all new variable-rate loan originations, and on new warehouse facility agreements and other financial instruments. We also transitioned some existing warehouse facility lines to SOFR and elected to apply the optional expedients when all such terms were related to the replacement of the reference rate. We are continuing to review existing variable-rate loans, borrowings, Series 1 redeemable preferred stock dividends and derivative instruments that utilize USD LIBOR as the reference rate and expect to continue transitioning these instruments to SOFR or other representative alternative reference rates throughout 2022 in accordance with the provisions of the standard. We do not expect there to be a material impact on our consolidated financial statements as a result of adopting this standard.
Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The standard is effective for fiscal years and interim periods beginning after December 15, 2023, with early adoption permitted. We early adopted the provisions of ASU 2020-06 effective January 1, 2021. The adoption of this standard did not have an impact on our consolidated financial statements, as we had no notes prior to an issuance in October 2021. The notes issued in October 2021 were accounted for in accordance with this standard.
v3.22.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business Combinations
Merger with Social Capital Hedosophia Holdings Corp. V
On January 7, 2021, Social Finance entered into the Agreement by and among Social Finance, SCH, a Cayman Islands exempted company limited by shares, and Plutus Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of SCH (“Merger Sub”). Pursuant to the Agreement, Merger Sub merged with and into Social Finance. Upon the Closing on May
28, 2021, the separate corporate existence of Merger Sub ceased and Social Finance survived the merger and became a wholly-owned subsidiary of SCH. On May 28, 2021, SCH also filed a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which SCH was domesticated as a Delaware corporation, changing its name from “Social Capital Hedosophia Holdings Corp. V” to “SoFi Technologies, Inc.” These transactions are collectively referred to as the “Business Combination”.
The Business Combination was accounted for as a reverse recapitalization whereby SCH was determined to be the accounting acquiree and Social Finance to be the accounting acquirer. This accounting treatment was the equivalent of Social Finance issuing stock for the net assets of SCH, accompanied by a recapitalization whereby no goodwill or other intangible assets were recorded. Operations prior to the Business Combination are those of Social Finance. At the Closing, we received gross cash consideration of $764.8 million as a result of the reverse recapitalization, which was then reduced by:
•A redemption of redeemable common stock (classified as temporary equity) of $150.0 million;
•A special payment (as discussed in Note 12), which was accounted for as an embedded derivative, and made to our Series 1 preferred stockholders of $21.2 million (which was expensed as incurred); and
•Our equity issuance costs.
In connection with the Business Combination, Social Finance incurred $27.5 million of equity issuance costs, consisting of advisory, legal, share registration and other professional fees, which were recorded within additional paid-in capital as a reduction of proceeds. We paid $0.6 million of the equity issuance costs during 2020.
In connection with the Business Combination, SCH entered into subscription agreements with certain investors (the “Third Party PIPE Investors”), whereby it issued 122,500,000 shares of common stock at $10.00 per share (“PIPE Shares”) for an aggregate purchase price of $1.225 billion (“PIPE Investment”), which closed simultaneously with the consummation of the Business Combination. Upon the Closing, the PIPE Shares were automatically converted into shares of SoFi Technologies common stock on a one-for-one basis.
Upon the Closing, holders of Social Finance common stock received shares of SoFi Technologies common stock in an amount determined by application of the exchange ratio of 1.7428 (“Exchange Ratio”), which was based on Social Finance’s implied price per share prior to the Business Combination. Additionally, holders of Social Finance preferred stock (with the exception of the Series 1 preferred stockholders) received shares of SoFi Technologies common stock in amounts determined by application of either the Exchange Ratio or a multiplier of the Exchange Ratio, as provided by the Agreement.
Acquisition of Golden Pacific Bancorp, Inc.
On February 2, 2022, we acquired Golden Pacific, pursuant to an Agreement and Plan of Merger entered into by and among the Company, a wholly-owned subsidiary of the Company and Golden Pacific in March 2021, pursuant to which we acquired all of the outstanding equity interests in Golden Pacific and its wholly-owned subsidiary, Golden Pacific Bank, for total cash purchase consideration of $22.3 million using cash on hand. After closing the Bank Merger, we became a bank holding company and Golden Pacific Bank began operating as SoFi Bank, National Association (“SoFi Bank”). We are duly registered as a bank holding company with the Federal Reserve. SoFi Bank is a national banking association whose primary federal regulator is the OCC. Deposit accounts of SoFi Bank are insured by the FDIC through the Deposit Insurance Fund to the fullest extent permitted by law.
The closing of the Bank Merger was subject to regulatory approval. On January 18, 2022, we received approval from the Federal Reserve of our application to become a bank holding company under the Bank Holding Company Act, and we received conditional approval from the OCC to close the Bank Merger. The OCC also approved our application to change the composition of Golden Pacific Bank’s assets in connection with the Bank Merger. The OCC conditional approval imposed a number of conditions, including that SoFi Bank have initial paid-in capital of no less than $750 million and adhere to an operating agreement. Golden Pacific Bank’s community bank business will continue to operate as a division of SoFi Bank.
A portion of the total cash purchase consideration ($0.6 million) was held back by the Company to satisfy any indemnification or certain other obligations (“Holdback Amount”), as certain legal proceedings with which Golden Pacific is involved as a plaintiff were not resolved at the time the Bank Merger closed. The Holdback Amount will be used for further financing or costs incurred associated with the litigation and any remaining amount upon resolution of the litigation will be
released to the Golden Pacific shareholders. Additionally, we held back a $3.3 million payable to a dissenting Golden Pacific Bank shareholder pending resolution of the shareholder’s appraisal claim, which could possibly result in a lower or higher amount paid to the dissenting shareholder once a ruling is made regarding the appraisal claim.
The Bank Merger is being accounted for as a business combination. The results of operations of Golden Pacific are not included in SoFi’s consolidated financial statements as of and for the year ended December 31, 2021. Additionally, given the proximity of the closing of the Bank Merger to the issuance of our consolidated financial statements for the year ended December 31, 2021, the initial accounting for the business combination is incomplete. The purchase consideration is being allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are being measured in accordance with the principles outlined in ASC 820. The excess of the total purchase consideration over the fair value of the net assets acquired, if any, will be allocated to goodwill, none of which is expected to be deductible for tax purposes. As the acquisition was not determined to be a significant acquisition under ASC 805, we do not intend to disclose the pro forma impact of this acquisition to the results of operations in our interim and annual filings with the SEC.
We incurred acquisition-related costs of $2.2 million related to the Bank Merger for the year ended December 31, 2021, which were presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
Acquisition of Technisys S.A.
On February 19, 2022, we entered into an Agreement and Plan of Merger by and among the Company, Technisys S.A., a Luxembourg société anonyme (“Technisys”), Atom New Delaware, Inc., a Delaware corporation and a wholly owned subsidiary of Atom, and Atom Merger Sub Corporation, a Delaware corporation and wholly owned subsidiary of SoFi Technologies, pursuant to which we will acquire all of the outstanding equity interests in Technisys for total consideration, in the form of shares of SoFi common stock, of $1.1 billion (the “Technisys Merger”). The shares of SoFi common stock issuable in connection with the acquisition are determined using the 20-day volume-weighted average price of SoFi common stock as of February 15, 2022, and are subject to escrow requirements and other customary adjustments. The Technisys Merger will be accounted for as a business combination.
Technisys is a cloud-native digital and core banking platform with an existing footprint of established banks, digital banks and fintechs in Latin America. With the acquisition of Technisys, we can expand our technology platform services to a broader international market.
Through December 31, 2021, we incurred acquisition-related costs of $3.3 million related to the Technisys Merger, which were presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
Acquisition of Galileo Financial Technologies, Inc.
On May 14, 2020, we acquired Galileo Financial Technologies, Inc. and its subsidiaries (“Galileo”) by acquiring 100% of the outstanding Galileo stock as of that date for total consideration of $1.2 billion. Galileo primarily provides technology platform services to financial and non-financial institutions. Our acquisition of Galileo enabled us to diversify our business from primarily consumer based to also serve institutions that rely upon Galileo’s integrated platform as a service to serve their clients.
Upon the finalization of the closing net working capital calculation in April 2021, the total purchase price consideration was reduced by $743, which was settled through the return to SoFi of an equivalent value of 83,856 previously issued Series H-1 preferred stock, which were retired upon receipt. The adjustment similarly reduced the carrying value of
recognized goodwill, and did not impact the estimated fair values of the assets acquired and liabilities assumed in conjunction with the transaction. There were no other adjustments to goodwill during the year ended December 31, 2021.
The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the years ended December 31, 2020 and 2019 as if the business combination had occurred on January 1, 2019:
Year Ended December 31,
20202019
Total net revenue$625,413 $483,921 
Net loss(304,219)(209,770)
The unaudited supplemental pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the actual results of operations that would have been achieved, nor is it indicative of future results of operations. The unaudited supplemental pro forma financial information reflects pro forma adjustments that give effect to applying the Company’s accounting policies and certain events the Company believes to be directly attributable to the acquisition. The pro forma adjustments primarily include:
•incremental straight-line amortization expense associated with acquired intangible assets;
•adjustments to depreciation expense resulting from accounting policy alignment between the acquirer and acquiree;
•adjustments to reflect interest expense on the seller note, including accretion of interest and incremental interest incurred after the interest-free period lapsed as if the interest was incurred during the earliest period presented;
•an adjustment to reflect post-combination share-based compensation expense associated with options to acquire common stock of Galileo that were converted into options to acquire common stock of SoFi as if the conversion occurred on January 1, 2019;
•a reversal of the Company’s previously-established deferred tax asset valuation allowance of $99,793 resulting from deferred tax liabilities acquired in connection with the acquisition as if it occurred during the earliest period presented;
•an adjustment to reflect $9,341 of acquisition-related costs as if they were incurred during the earliest period presented; and
•the related income tax effects, at the statutory tax rate applicable for each period, of the pro forma adjustments noted above.
The unaudited supplemental pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Galileo.
Other Acquisitions
On April 28, 2020, the Company acquired 100% of the outstanding stock of 8 Limited, a Hong Kong brokerage services firm, for total consideration of $16,126. Part of the consideration consisted of Social Finance common stock, of which a portion was contingent on the satisfaction of certain representations and warranties. During the fourth quarter of 2021, we issued 320,649 shares of SoFi Technologies common stock in satisfaction of the contingent consideration
v3.22.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
A rollforward of our goodwill balance is presented below as of the dates indicated:
December 31,
20212020
Beginning balance
$899,270 $15,673 
Less: accumulated impairment
— — 
Beginning balance, net
899,270 15,673 
Additional goodwill recognized(1)
— 883,597 
Other adjustments(2)
(743)— 
Ending balance(3)
$898,527 $899,270 
_____________________
(1) The additional goodwill recognized as of December 31, 2020 includes $873,358 related to the acquisition of Galileo and $10,239 related to the acquisition of 8 Limited. See Note 2 for additional information.
(2) As of December 31, 2021, includes an adjustment related to the finalization of the closing net working capital calculation in April 2021 for the acquisition of Galileo. See Note 2 for additional information.
(3) As of December 31, 2021, we had goodwill attributable to the following reportable segments: $872,615 to Technology Platform and $25,912 to Financial Services. As of December 31, 2020, we had goodwill attributable to the following reportable segments: $873,358 to Technology Platform and $25,912 to Financial Services.
There were no goodwill impairment charges during the years ended December 31, 2021, 2020 and 2019.
The following is a summary of the carrying amount and estimated useful lives of our intangible assets by class as of the dates indicated:
Weighted Average Useful Life (Years)
Gross Balance
Accumulated Amortization
Net Book Value
December 31, 2021
Developed technology8.5$257,438 $(49,401)$208,037 
Customer-related3.6125,350 (57,083)68,267 
Trade names, trademarks and domain names8.610,000 (1,901)8,099 
Core banking infrastructure(1)
n/a17,100 (17,100)— 
Broker-dealer license and trading rights
5.7250 (74)176 
Total
$410,138 $(125,559)$284,579 
December 31, 2020
Developed technology(2)
8.5$257,438 $(19,142)$238,296 
Customer-related(2)
3.6125,350 (22,102)103,248 
Trade names, trademarks and domain names(2)
8.610,000 (736)9,264 
Core banking infrastructure(1)(2)
1.017,100 (13,043)4,057 
Broker-dealer license and trading rights(2)
5.7250 (29)221 
Total
$410,138 $(55,052)$355,086 
_____________________
(1) In connection with the acquisition of Galileo during the year ended December 31, 2020, we accelerated the useful life of our existing core banking infrastructure to May 2021. Although the intangible asset was fully amortized as of December 31, 2021, it remains in use by the Company.
(2) During the year ended December 31, 2020, the Company acquired $253,000 in developed technology, $125,000 in customer-related intangible assets and $10,000 in trade names, trademarks and domain names related to the acquisition of Galileo. Other additions to developed technology, customer-related and broker-dealer license and trading rights intangible assets related to the acquisition of 8 Limited.
Amortization expense for the years ended December 31, 2021, 2020 and 2019 was $70,507, $49,735 and $3,008, respectively. There were no abandonments or impairments during any of the years presented. We accelerated amortization expense during 2019 related to certain partnership and other intangible assets because we determined that the costs of these
assets had already been recovered, which meant there was no expected future benefit as of December 31, 2019. The acceleration of amortization expense had an immaterial impact during the period.
Estimated future amortization expense as of December 31, 2021 is as follows:
2022$66,449 
202364,753 
202431,468 
202531,468 
202630,641 
Thereafter59,800 
Total$284,579 
v3.22.0.1
Investments in AFS Debt Securities
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments in AFS Debt Securities Investments in AFS Debt Securities
In the third quarter of 2021, we began investing in debt securities. The following table presents our investments in AFS debt securities as of December 31, 2021. We did not have any investments in debt securities as of December 31, 2020.
December 31, 2021
Amortized Cost(1)
Accrued InterestGross Unrealized Gains
Gross Unrealized Losses(2)
Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities$103,014 $73 $— $(584)$102,503 
Multinational securities(4)
19,911 109 — (154)19,866 
Corporate bonds39,894 235 — (480)39,649 
Agency TBA7,457 13 4 (8)7,466 
Agency mortgage-backed securities4,153 14 — (31)4,136 
Other asset-backed securities9,610 5 — (91)9,524 
Commercial paper9,939 — — — 9,939 
Other(5)
1,818 13 — (7)1,824 
Total investments in AFS debt securities$195,796 $462 $4 $(1,355)$194,907 
_____________________
(1) Amortized cost basis reflects the amortization of premium of $384 during the year ended December 31, 2021.
(2) As of December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. See Note 1 for additional information. Additionally, no such investments have been in a continuous unrealized loss position for more than 12 months, as we made the investments during the third quarter of 2021.
(3) Investments in AFS debt securities are recorded at fair value.
(4) As of December 31, 2021, includes sovereign foreign and supranational bonds.
(5) As of December 31, 2021, includes state and city municipal bond securities.
The following table presents the amortized cost and fair value of our investments in AFS debt securities as of December 31, 2021 by contractual maturity.
Due Within One YearDue After One Year Through Five YearsDue After Five Years Through Ten YearsDue After Ten YearsTotal
December 31, 2021
Investments in AFS debt securities—Amortized cost:
U.S. Treasury securities$— $103,014 $— $— $103,014 
Multinational securities— 19,911 — — 19,911 
Corporate bonds— 39,894 — — 39,894 
Agency TBA— — — 7,457 7,457 
Agency mortgage-backed securities— — — 4,153 4,153 
Other asset-backed securities— 7,600 2,010 — 9,610 
Commercial paper9,939 — — — 9,939 
Other600 1,218 — — 1,818 
Total investments in AFS debt securities$10,539 $171,637 $2,010 $11,610 $195,796 
Investments in AFS debt securities—Fair value(1):
U.S. Treasury securities$— $102,430 $— $— $102,430 
Multinational securities— 19,757 — — 19,757 
Corporate bonds— 39,414 — — 39,414 
Agency TBA— — — 7,453 7,453 
Agency mortgage-backed securities— — — 4,122 4,122 
Other asset-backed securities— 7,527 1,992 — 9,519 
Commercial paper9,939 — — — 9,939 
Other599 1,212 — — 1,811 
Total investments in AFS debt securities$10,538 $170,340 $1,992 $11,575 $194,445 
_____________________
(1) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $462 as of December 31, 2021.
The following table presents the proceeds and gross realized gains and losses from sales and maturities of our investments in debt securities during the year ended December 31, 2021. Realized gains and losses are presented within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the year presented.
Year Ended
December 31, 2021
Investments in AFS debt securities
Gross realized gains included in earnings$44 
Gross realized losses included in earnings(152)
Net realized losses$(108)
Gross proceeds from sales and maturities(1)
$57,541 
_____________________
(1) Proceeds from maturities of investments in AFS debt securities during the year ended December 31, 2021 were $4,799.
See Note 12 for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of AOCI.
v3.22.0.1
Loans
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Loans Loans
As of December 31, 2021, our loan portfolio consisted of personal loans, student loans and home loans, which are measured at fair value, and credit card loans, which are measured at amortized cost. Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income, as applicable, as of the dates indicated:
December 31,
20212020
Loans at fair value
Securitized student loans$574,328 $908,427 
Securitized personal loans234,576 559,743 
Student loans2,876,509 1,958,032 
Home loans212,709 179,689 
Personal loans2,054,850 1,253,177 
Total loans at fair value5,952,972 4,859,068 
Loans at amortized cost(1)
Credit card loans(2)
115,912 3,723 
Commercial loan(3)
— 16,512 
Total loans at amortized cost115,912 20,235 
Total loans$6,068,884 $4,879,303 
_____________________
(1) See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326, Financial Instruments—Credit Losses (“ASC 326”).
(2) During the year ended December 31, 2021, we had originations of credit card loans of $380,979 and gross repayments on credit card loans of $261,283, of which $474 were non-cash reductions to the loan balance through reward point redemptions. During the year ended December 31, 2020, we had originations of $6,957 and gross repayments of $3,017.
(3) During the third quarter of 2021, we issued a commercial loan that had a principal balance of $10,000, all of which was repaid during the third quarter of 2021. During the fourth quarter of 2020, we issued a commercial loan that had a principal balance of $16,500 and accumulated unpaid interest of $12 as of December 31, 2020, all of which was repaid during January 2021.
Loans Measured at Fair Value
The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated:
Student LoansHome LoansPersonal LoansTotal
December 31, 2021
Unpaid principal(1)
$3,356,344 $210,111 $2,188,773 $5,755,228 
Accumulated interest9,990 190 12,310 22,490 
Cumulative fair value adjustments(1)
84,503 2,408 88,343 175,254 
Total fair value of loans$3,450,837 $212,709 $2,289,426 $5,952,972 
December 31, 2020
Unpaid principal(1)
$2,774,511 $171,967 $1,780,246 $4,726,724 
Accumulated interest9,472 141 11,558 21,171 
Cumulative fair value adjustments(1)
82,476 7,581 21,116 111,173 
Total fair value of loans$2,866,459 $179,689 $1,812,920 $4,859,068 
_____________________
(1) These items are impacted by charge-offs during the period.
The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented.
Student Loans
Personal Loans
Total
December 31, 2021
Unpaid principal
$1,589 $4,765 $6,354 
Accumulated interest
32 149 181 
Cumulative fair value adjustments
(865)(4,189)(5,054)
Fair value of loans 90 days or more delinquent$756 $725 $1,481 
December 31, 2020
Unpaid principal
$1,046 $4,199 $5,245 
Accumulated interest
37 210 247 
Cumulative fair value adjustments
(442)(3,872)(4,314)
Fair value of loans 90 days or more delinquent
$641 $537 $1,178 
The following table presents the changes in our loans measured at fair value on a recurring basis:
Student Loans
Home Loans
Personal Loans
Total
Fair value as of January 1, 2020$3,185,233 $91,695 $2,111,030 $5,387,958 
Origination of loans
4,928,880 2,183,521 2,580,757 9,693,158 
Principal payments
(883,761)(2,748)(1,015,046)(1,901,555)
Sales of loans
(4,534,286)(2,102,101)(1,531,058)(8,167,445)
Deconsolidation of securitizations
(495,507)— (406,687)(902,194)
Purchases(1)
648,153 2,070 39,975 690,198 
Change in accumulated interest
1,286 21 (2,379)(1,072)
Change in fair value(2)
16,461 7,231 36,328 60,020 
Fair value as of December 31, 2020$2,866,459 $179,689 $1,812,920 $4,859,068 
Origination of loans4,293,526 2,978,222 5,386,934 12,658,682 
Principal payments(892,989)(6,184)(1,054,077)(1,953,250)
Sales of loans(2,854,778)(2,935,038)(4,290,424)(10,080,240)
Purchases(1)
44,850 1,144 405,051 451,045 
Change in accumulated interest518 49 752 1,319 
Change in fair value(2)
(6,749)(5,173)28,270 16,348 
Fair value as of December 31, 2021$3,450,837 $212,709 $2,289,426 $5,952,972 
_____________________
(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the years ended December 31, 2021 and 2020 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $425,302 and $76,044, respectively. Additionally, during the years ended December 31, 2021 and 2020, the Company elected to purchase $17,596 and $606,264, respectively, of previously sold loans. The Company was not required to buy back these loans. The remaining purchases during the years presented related to standard representations and warranties pursuant to our various loan sale agreements.
(2) Changes in fair value of loans are recorded in the consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $4,143, $13,896 and $9,501 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
v3.22.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities Variable Interest Entities
Consolidated VIEs
The Company consolidates certain securitization trusts in which we have a variable interest and are deemed to be the primary beneficiary. Our consolidation policy is further discussed in Note 1.
The VIEs are SPEs with portfolio loans securing debt obligations. The SPEs were created and designed to transfer credit and interest rate risk associated with consumer loans through the issuance of collateralized notes and trust certificates. The Company makes standard representations and warranties to repurchase or replace qualified portfolio loans. Aside from these representations, the holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying portfolio loans securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. We hold a significant interest in these financing transactions through our ownership of a portion of the residual interest in certain VIEs. In addition, in some cases, we invest in the debt obligations issued by the VIE. Our investments in consolidated VIEs eliminate in consolidation. The residual interest is the first VIE interest to absorb losses should the loans securing the debt obligations not provide adequate cash flows to satisfy more senior claims and is, by design, the interest that we expect to absorb the expected gains and losses of the VIE. The Company’s exposure to credit risk in sponsoring SPEs is limited to our investment in the VIE. VIE creditors have no recourse against our general credit.
The following table presents the assets and liabilities of consolidated VIEs that were included in our consolidated balance sheets. The assets in the below table may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation.
December 31,
20212020
Assets:
Restricted cash and restricted cash equivalents$53,161 $76,973 
Loans808,904 1,468,170 
Total assets$862,065 $1,545,143 
Liabilities:
Accounts payable, accruals and other liabilities$388 $759 
Debt(1)
660,419 1,248,822 
Residual interests classified as debt93,682 118,298 
Total liabilities$754,489 $1,367,879 
_____________________
(1)Debt is presented net of debt issuance costs and debt premiums (discounts).
Nonconsolidated VIEs
We have created and designed personal loan and student loan trusts to transfer associated credit and interest rate risk associated with the loans through the issuance of collateralized notes and residual certificates. We have a variable interest in the nonconsolidated loan trusts, as we own collateralized notes and residual certificates in the loan trusts that absorb variability. We also have continuing, non-controlling involvement with the trusts as the servicer. As servicer, we have the power to perform the activities which most impact the economic performance of the VIE, but since we hold an insignificant financial interest in the trusts, we are not the primary beneficiary. We define an insignificant financial interest as less than 10% of the expected gains and losses of the VIE. This financial interest represents the equity ownership interest in the loan trusts, wherein there is an obligation to absorb losses and the right to receive benefits from residual certificate ownership. The maximum exposure to loss as a result of our involvement with the nonconsolidated VIE is limited to our investment. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in nonconsolidated VIEs.
Personal Loans
We established four and one personal loan trusts during the years ended December 31, 2021 and 2020, respectively, that were not consolidated as of the corresponding balance sheet dates. As of December 31, 2021 and 2020, we had investments in nine and nine nonconsolidated personal loan VIEs, respectively.
We did not provide financial support to any personal loan trusts beyond our initial equity investment during the years presented. We did not deconsolidate any personal loan VIEs during the year ended December 31, 2021. We deconsolidated three VIEs during the year ended December 31, 2020, which were originally consolidated in 2017.
Student Loans
We established four and four student loan trusts during the years ended December 31, 2021 and 2020, respectively, that were not consolidated as of the corresponding balance sheet dates. As of December 31, 2021 and 2020, we had investments in 24 and 20 nonconsolidated student loan VIEs, respectively.
We did not provide financial support to any student loan trusts beyond our initial equity investment during the years presented. We did not deconsolidate any student loan VIEs during the year ended December 31, 2021. We consolidated one VIE during the year ended December 31, 2020 that was also deconsolidated during the year.
The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which were included in our consolidated balance sheets.
December 31,
20212020
Personal loans$62,925 $71,115 
Student loans311,763 425,820 
Securitization investments$374,688 $496,935 
v3.22.0.1
Transfers of Financial Assets
 12 Months Ended
Dec. 31, 2021
Transfers and Servicing [Abstract]  
Transfers of Financial Assets Transfers of Financial Assets We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-FNMA home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For FNMA home loans, we have customary FNMA repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement.
The following table summarizes the loan securitization transfers qualifying for sale accounting treatment for the years indicated. There were no home loan securitization transfers qualifying for sale accounting treatment during any of the years presented.
Year Ended December 31,
202120202019
Student loans
Fair value of consideration received and obligations settled:
Cash$1,187,714 $2,015,357 $4,542,431 
Securitization investments62,783 130,807 239,698 
Deconsolidation of debt(1)
— 458,375 — 
Servicing assets recognized36,948 19,903 42,826 
Total consideration1,287,445 2,624,442 4,824,955 
Aggregate unpaid principal balance and accrued interest of loans sold1,227,379 2,540,052 4,677,471 
Gain from loan sales(1)
$60,066 $84,390 $147,484 
Personal loans
Fair value of consideration received and obligations settled:
Cash$1,050,062 $316,503 $397,962 
Securitization investments55,491 20,961 111,556 
Deconsolidation of debt(1)
— 414,261 1,464,920 
Servicing assets recognized6,003 2,086 11,229 
Total consideration1,111,556 753,811 1,985,667 
Aggregate unpaid principal balance and accrued interest of loans sold1,054,171 708,346 1,906,757 
Gain from loan sales(1)
$57,385 $45,465 $78,910 
_____________________
(1)Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the year because we no longer held a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. See Note 6 for further discussion of deconsolidations. For the year ended December 31, 2020, the gains from sales excluded losses from deconsolidations on student loans and personal loans of $8,601 and $6,098, respectively. For the year ended December 31, 2019, the gains from sales excluded losses from deconsolidations on personal loans of $38,741. Losses on deconsolidations are presented within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss).
The following table summarizes the whole loan sales for the years indicated:
Year Ended December 31,
202120202019
Student loans
Fair value of consideration received:
Cash$1,676,892 $2,596,719 $1,399,921 
Servicing assets recognized15,526 25,734 21,145 
Repurchase liabilities recognized(300)(510)(314)
Total consideration1,692,118 2,621,943 1,420,752 
Aggregate unpaid principal balance and accrued interest of loans sold1,635,280 2,503,821 1,389,986 
Gain from loan sales$56,838 $118,122 $30,766 
Home loans
Fair value of consideration received:
Cash$2,989,813 $2,173,709 $733,860 
Servicing assets recognized31,294 20,440 5,724 
Repurchase liabilities recognized(3,288)(3,034)(1,720)
Total consideration3,017,819 2,191,115 737,864 
Aggregate unpaid principal balance and accrued interest of loans sold2,935,343 2,101,895 726,379 
Gain from loan sales$82,476 $89,220 $11,485 
Personal loans
Fair value of consideration received:
Cash$3,373,655 $1,285,689 $2,316,771 
Servicing assets recognized21,811 8,429 31,138 
Repurchase liabilities recognized(8,168)(3,535)(2,948)
Total consideration received3,387,298 1,290,583 2,344,961 
Aggregate unpaid principal balance and accrued interest of loans sold3,253,645 1,238,474 2,257,223 
Gain from loan sales$133,653 $52,109 $87,738 
The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:
Student LoansHome LoansPersonal LoansTotal
December 31, 2021
Loans in repayment$9,852,957 $4,575,001 $5,138,299 $19,566,257 
Loans in-school/grace/deferment37,949 — — 37,949 
Loans in forbearance44,833 40,353 1,120 86,306 
Loans in delinquency112,885 7,465 75,275 195,625 
Total loans serviced$10,048,624 $4,622,819 $5,214,694 $19,886,137 
December 31, 2020
Loans in repayment$12,059,702 $2,629,015 $4,796,404 $19,485,121 
Loans in-school/grace/deferment26,158 — — 26,158 
Loans in forbearance275,659 46,357 35,677 357,693 
Loans in delinquency91,424 8,493 110,640 210,557 
Total loans serviced$12,452,943 $2,683,865 $4,942,721 $20,079,529 
The following table presents additional information about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement during the years indicated:
Year Ended December 31,
202120202019
Student loans
Servicing fees collected
$46,657 $50,794 $47,038 
Charge-offs, net of recoveries(1)
$24,675 $16,999 $27,740 
Home Loans
Servicing fees collected
8,749 4,499 2,635 
Charge-offs, net of recoveries
— — — 
Personal Loans
Servicing fees collected
34,421 45,574 31,268 
Charge-offs, net of recoveries(1)
102,276 197,927 233,628 
Total
Servicing fees collected
$89,827 $100,867 $80,941 
Charge-offs, net of recoveries(1)
$126,951 $214,926 $261,368 
_____________________
(1)Student loan and personal loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed. For both loan products, charge-off sales were meaningfully higher in 2020 relative to 2021.
v3.22.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
We measure our allowance for credit losses on accounts receivable, which primarily relates to Galileo, and on loans measured at amortized cost, including credit card loans, under ASC 326. Given our methods of collecting funds on servicing receivables, our historical experience of infrequent write offs, and that we have not observed meaningful changes in our counterparties’ abilities to pay, we determined that the future exposure to credit losses on servicing related receivables was immaterial.
The following table summarizes the activity in the balance of allowance for credit losses on accounts receivable and credit card loans during the years indicated:
Accounts Receivable(1)
Credit Card Loans(2)
Balance at January 1, 2020$— $— 
Provision for credit losses(3)
766 219 
Write-offs charged against the allowance
(204)— 
Balance at December 31, 2020
$562 $219 
Provision for credit losses(3)
3,043 7,573 
Write-offs charged against the allowance(4)
(1,313)(755)
Balance at December 31, 2021
$2,292 $7,037 
_____________________
(1)Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. We established an allowance for credit losses on accounts receivable subsequent to our acquisition of Galileo in the second quarter of 2020. Certain of our historical accounts receivable balances did not have any write-offs.
(2)Credit card loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the consolidated balance sheets. We launched the SoFi Credit Card in the third quarter of 2020, which was expanded to a broader market in the fourth quarter of 2020.
(3)Provision for credit losses on accounts receivable and credit card loans are presented within noninterest expense—general and administrative and noninterest expense—provision for credit losses, respectively, in the consolidated statements of operations and comprehensive income (loss). There were no recoveries of credit card losses during the years ended December 31, 2021 and 2020.
(4)The increase in accounts receivable write-offs charged against the allowance during the year ended December 31, 2021 was primarily attributable to three accounts that were deemed uncollectible.
v3.22.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables summarize, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities (i) measured at fair value on a recurring basis, (ii) measured at fair value on a nonrecurring basis, or (iii) disclosed but not carried at fair value in the consolidated balance sheets as of the dates presented.
December 31, 2021
Fair Value
Carrying ValueLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$494,711 $494,711 $— $— $494,711 
Restricted cash and restricted cash equivalents(1)
273,726 273,726 — — 273,726 
Investments in AFS debt securities(2)(4)
194,907 129,835 65,072 — 194,907 
Student loans(2)
3,450,837 — — 3,450,837 3,450,837 
Home loans(2)
212,709 — — 212,709 212,709 
Personal loans(2)
2,289,426 — — 2,289,426 2,289,426 
Credit card loans(1)
115,912 — — 118,412 118,412 
Servicing rights(2)
168,259 — — 168,259 168,259 
Asset-backed bonds(2)(5)
253,669 — 253,669 — 253,669 
Residual investments(2)(5)
121,019 — — 121,019 121,019 
Non-securitization investments – ETFs(2)(6)
1,486 1,486 — — 1,486 
Non-securitization investments – other(3)
6,054 — — 6,054 6,054 
Third party warrants(2)(7)
1,369 — — 1,369 1,369 
Derivative assets(2)(8)(9)
5,444 — 5,444 — 5,444 
Purchase price earn-out(2)(10)
4,272 — — 4,272 4,272 
Interest rate lock commitments(2)(11)
3,759 — — 3,759 3,759 
Student loan commitments(2)(11)
2,220 — — 2,220 2,220 
Interest rate caps(2)(9)
493 — 493 — 493 
Total assets$7,600,272 $899,758 $324,678 $6,378,336 $7,602,772 
Liabilities
Debt(1)
$3,947,983 $1,240,560 $2,807,253 $— $4,047,813 
Residual interests classified as debt(2)
93,682 — — 93,682 93,682 
Derivative liabilities(2)(8)(9)
864 196 668 — 864 
Total liabilities$4,042,529 $1,240,756 $2,807,921 $93,682 $4,142,359 
December 31, 2020
Fair Value
Carrying ValueLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$872,582 $872,582 $— $— $872,582 
Restricted cash and restricted cash equivalents(1)
450,846 450,846 — — 450,846 
Student loans(2)
2,866,459 — — 2,866,459 2,866,459 
Home loans(2)
179,689 — — 179,689 179,689 
Personal loans(2)
1,812,920 — — 1,812,920 1,812,920 
Credit card loans(1)
3,723 — — 3,723 3,723 
Commercial loan(1)
16,512 — — 16,512 16,512 
Servicing rights(2)
149,597 — — 149,597 149,597 
Asset-backed bonds(2)(5)
357,411 — 357,411 — 357,411 
Residual investments(2)(5)
139,524 — — 139,524 139,524 
Non-securitization investments – ETFs(2)(6)
6,850 6,850 — — 6,850 
Non-securitization investments – other(3)
1,147 — — 1,147 1,147 
Interest rate lock commitments(2)(11)
15,620 — — 15,620 15,620 
Total assets$6,872,880 $1,330,278 $357,411 $5,185,191 $6,872,880 
Liabilities
Debt(1)
$4,798,925 $— $4,851,658 $— $4,851,658 
Residual interests classified as debt(2)
118,298 — — 118,298 118,298 
Warrant liabilities – Series H warrants(2)(12)
39,959 — — 39,959 39,959 
Derivative liabilities(2)(8)(9)
2,955 2,008 947 — 2,955 
ETF short positions(2)(6)
5,241 5,241 — — 5,241 
Total liabilities$4,965,378 $7,249 $4,852,605 $158,257 $5,018,111 
_____________________
(1)Disclosed but not carried at fair value. The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes issued in October 2021 was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt, revolving credit facility debt, financing arrangements assumed in the Galileo acquisition and credit card loans were based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. The fair value of our single commercial loan as of December 31, 2020 was also determined to approximate its carrying value, as the loan was issued in the fourth quarter of 2020, was short-term in nature, and was repaid in full in January 2021.
(2)Measured at fair value on a recurring basis.
(3)Measured at fair value on a nonrecurring basis.
(4)Investments in AFS debt securities as of December 31, 2021 were classified as Level 1 or Level 2. The Level 1 investments utilize quoted prices in actively traded markets. The Level 2 investments rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 1 and Note 4 for additional information.
(5)These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. As we do not provide financial support beyond our initial equity investment, our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to the investment amount. See Note 6 for additional information.
(6)ETFs and ETF short positions classified as Level 1 are based on utilizing quoted prices in actively traded markets. The short positions serve as an economic hedge to our non-securitization investments in ETFs.
(7)Third party warrants were recorded during the fourth quarter of 2021, and there were no subsequent adjustments from their initial value. The key unobservable assumption used in the fair value measurement of the third party warrants is the price of the stock underlying the warrants. The fair value is measured as the difference between the stock price and the strike price of the warrants. As the strike price is insignificant, we concluded that the impact of time value on the fair value measure was immaterial.
(8)For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. See Note 1 for additional information.
(9)Derivative liabilities classified as Level 1 are based on broker quotes in active markets and represent economic hedges of loan fair values. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on
observable inputs other than quoted prices. Interest rate swaps are valued using the three-month LIBOR swap yield curve and interest rate caps are valued using a SOFR rate curve and the implied volatilities suggested by the SOFR rate curve, which are all observable inputs from active markets.
(10)The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs, such as conditional prepayment rates, annual default rates and discount rates.
(11)IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date.
(12)In conjunction with the Closing of the Business Combination, we measured the final fair value of the Series H warrants and subsequently reclassified them into permanent equity. Therefore, we did not measure the Series H warrants at fair value on an ongoing basis, subsequent to May 28, 2021. See Note 11 for additional information on our historical Series H warrant liabilities, including inputs to the valuation.
Loans
The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Conditional prepayment rate
16.5% – 26.3%
19.2%
15.8% – 33.3%
18.4%
Annual default rate
0.2% – 4.2%
0.4%
0.2% – 4.9%
0.4%
Discount rate
1.9% – 7.1%
2.9%
1.1% – 7.1%
3.3%
Home loans
Conditional prepayment rate
4.8% – 16.4%
12.4%
4.4% – 17.6%
14.9%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 4.9%
0.1%
Discount rate
2.5% – 13.0%
2.6%
1.3% – 10.0%
1.6%
Personal loans
Conditional prepayment rate
18.4% – 37.7%
20.5%
14.5% – 23.2%
18.1%
Annual default rate
4.2% – 30.0%
4.4%
3.3% – 33.8%
4.2%
Discount rate
3.9% – 7.0%
4.0%
5.0% – 10.7%
6.0%
The key assumptions included in the above table are defined as follows:
•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Annual default rate — The annualized rate of borrowers who do not make loan payments on time. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the loans. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
See Note 5 for additional loan fair value disclosures.
Servicing Rights
Servicing rights for student loans and personal loans do not trade in an active market with readily observable prices. Similarly, home loan servicing rights infrequently trade in an active market. At the time of the underlying loan sale or the assumption of servicing rights, the fair value of servicing rights is determined using a discounted cash flow methodology based on observable and unobservable inputs. Management classifies servicing rights as Level 3 due to the use of significant unobservable inputs in the fair value measurement.
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Market servicing costs
0.1% – 0.2%
0.1%
0.1% – 0.2%
0.1%
Conditional prepayment rate
15.2% – 25.6%
20.4%
13.8%  – 24.7%
18.7%
Annual default rate
0.2% – 4.3%
0.4%
0.2% – 4.8%
0.4%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
Home loans
Market servicing costs
0.1% – 0.1%
0.1%
0.1% – 0.1%
0.1%
Conditional prepayment rate
10.0% – 16.4%
11.5%
13.9% – 20.3%
16.5%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 0.1%
0.1%
Discount rate
7.5% – 7.5%
7.5%
10.0% – 10.0%
10.0%
Personal loans
Market servicing costs
0.2% – 1.1%
0.2%
0.2% – 0.7%
0.3%
Conditional prepayment rate
22.5% – 41.4%
26.0%
16.2% – 26.1%
19.1%
Annual default rate
3.2% – 7.0%
4.4%
3.1% – 7.5%
5.5%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
The key assumptions included in the above table are defined as follows:
•Market servicing costs — The fee a willing market participant, which we validate through actual third-party bids for our servicing, would require for the servicing of student loans, home loans and personal loans with similar characteristics as those in our serviced portfolio. An increase in the market servicing cost, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Annual default rate — The annualized rate of default within the total serviced loan balance. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the servicing rights. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
The following table presents the estimated decrease to the fair value of our servicing rights as of the dates indicated if the key assumptions had each of the below adverse changes:
December 31,
20212020
Market servicing costs
2.5 basis points increase$(10,822)$(10,472)
5.0 basis points increase(21,644)(20,944)
Conditional prepayment rate
10% increase$(6,260)$(5,430)
20% increase(12,031)(10,230)
Annual default rate
10% increase$(205)$(336)
20% increase(408)(681)
Discount rate
100 basis points increase$(3,782)$(2,986)
200 basis points increase(7,349)(5,820)
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the effect of an adverse variation in a particular assumption on the fair value of our servicing rights is calculated while holding the other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects.
The following table presents the changes in the Company’s servicing rights, which are measured at fair value on a recurring basis:
Student LoansHome LoansPersonal LoansTotal
Fair value as of December 31, 2019$138,582 $13,181 $49,855 $201,618 
Recognition of servicing from transfers of financial assets45,637 20,440 10,515 76,592 
Derecognition of servicing via loan purchases(12,924)— (934)(13,858)
Change in valuation inputs or other assumptions(20,168)(5,056)7,765 (17,459)
Realization of expected cash flows and other changes(50,490)(4,651)(42,155)(97,296)
Fair value as of December 31, 2020$100,637 $23,914 $25,046 $149,597 
Recognition of servicing from transfers of financial assets52,474 31,294 27,814 111,582 
Servicing rights assumed from third parties— — 370 370 
Derecognition of servicing via loan purchases(392)— (660)(1,052)
Change in valuation inputs or other assumptions(16,197)4,300 9,246 (2,651)
Realization of expected cash flows and other changes(46,519)(8,975)(34,093)(89,587)
Fair value as of December 31, 2021$90,003 $50,533 $27,723 $168,259 
Asset-Backed Bonds
The fair value of asset-backed bonds is determined using a discounted cash flow methodology. Management classifies asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:
December 31,
20212020
Discount rate (range)
0.6% – 3.7%
0.8% – 4.0%
Conditional prepayment rate (range)
19.5% – 32.2%
18.8% – 21.9%
As of the dates indicated, the fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests, by design, are expected to absorb all estimated losses based on our default assumptions for the respective periods.
Residual Investments and Residual Interests Classified as Debt
Residual investments and residual interests classified as debt do not trade in active markets with readily observable prices, and there is limited observable market data for reference. The fair values of residual investments and residual interests classified as debt are determined using a discounted cash flow methodology. Management classifies residual investments and residual interests classified as debt as Level 3 due to the use of significant unobservable inputs in the fair value measurements.
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Residual investments
Conditional prepayment rate
19.5% – 33.6%
23.0%
18.8%  – 22.3%
20.2%
Annual default rate
0.3% – 5.7%
0.9%
0.3% – 6.2%
0.7%
Discount rate
2.6% – 10.5%
4.4%
3.0% – 18.5%
6.2%
Residual interests classified as debt
Conditional prepayment rate
20.0% – 41.8%
31.5%
19.5% – 24.8%
21.4%
Annual default rate
0.5% – 5.6%
3.2%
0.4% – 6.4%
3.1%
Discount rate
5.0% – 9.5%
5.7%
8.5% – 18.0%
10.8%
The key assumptions included in the above table are defined as follows:
•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period for the pool of loans in the securitization. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans in the securitization. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the residual investments and residual interests classified as debt. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in
the consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.
Residual InvestmentsResidual Interests Classified as Debt
Fair value as of December 31, 2019$262,880 $271,778 
Additions10,708 — 
Change in valuation inputs or other assumptions(1)
9,702 38,216 
Payments(2)
(96,505)(89,978)
Transfers(3)
(47,261)— 
Derecognition upon achieving true sale accounting treatment— (101,718)
Fair value as of December 31, 2020$139,524 $118,298 
Additions49,317 2,170 
Change in valuation inputs or other assumptions(1)
10,603 22,802 
Payments(2)
(78,425)(49,588)
Fair value as of December 31, 2021$121,019 $93,682 
_____________________
(1)For residual investments, the estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(230), $(1,252) and $569 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the residual investments. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
(2)Payments of residual investments included residual investment sales of $4,291 and $8,342 during the years ended December 31, 2021 and 2020, respectively.
(3)The year ended December 31, 2020 includes a transfer from residual investments (Level 3) to asset-backed bonds (Level 2) associated with a repackaged securitization transaction in which we formed a new VIE and, in the process, exchanged our residual interest for an asset-backed bond interest.
Loan Commitments
We classify student loan commitments as Level 3 because the assets do not trade in an active market with readily observable prices and, as such, our valuations utilize significant unobservable inputs. Additionally, we classify IRLCs as Level 3, as our IRLCs are inherently uncertain and unobservable given that a home loan origination is contingent on a plethora of factors. The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
IRLCs
Loan funding probability(1)
75.0% – 75.0%
75.0%
54.5% – 54.5%
54.5%
Student loan commitments
Loan funding probability(1)
95.0% – 95.0%
95.0%n/an/a
_____________________
(1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $53,189 as of December 31, 2021. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs.
The key assumption included in the above table is defined as follows:
•Loan funding probability — Our expectation of the percentage of IRLCs or student loan commitments which will become funded loans. An increase in the loan funding probabilities, in isolation, would result in an increase in a fair value measurement. The weighted average assumptions were weighted based on relative fair values.
The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
IRLCsStudent Loan Commitments
Fair value as of December 31, 2019$1,090 $— 
Revaluation adjustments62,528 — 
Funded loans(1)
(27,321)— 
Unfunded loans(1)
(20,677)— 
Fair value as of December 31, 2020$15,620 $— 
Revaluation adjustments23,211 6,410 
Funded loans(1)
(24,330)(2,384)
Unfunded loans(1)
(10,742)(1,806)
Fair value as of December 31, 2021$3,759 $2,220 
_____________________
(1)For each quarter within the years presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. The amounts presented on a year-to-date basis represent the summation of the per-quarter effects.
Non-Securitization Investments
Non-securitization investments — ETFs of $1,486 and $6,850 as of December 31, 2021 and 2020, respectively, include investments in exchange-traded funds (“ETF”), which have targeted investment strategies. Our investment as of December 31, 2021 included an ETF with investment grade and high-yield fixed income securities. Our investment as of December 31, 2020 also included an ETF with equity securities seeking long-term capital appreciation and an ETF with widely held U.S. stocks by SoFi members, both of which were sold during the 2021 period. Non-securitization investments—ETFs are measured at fair value on a recurring basis using the net asset value expedient in accordance with ASC 820 and are presented within other assets in the consolidated balance sheets.
Non-securitization investments — Other of $6,054 and $1,147 as of December 31, 2021 and 2020, respectively, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. Under the measurement alternative method, we measure the investments at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuers. The carrying values of the investments are presented within other assets in the consolidated balance sheets. Adjustments to the carrying value, such as impairments and unrealized gains, are recognized within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). The fair value measurements are classified within Level 3 of the fair value hierarchy due to the uses of unobservable inputs in the fair value measurements.
For one such investment with a fair value of $1,886 and $1,147 as of December 31, 2021 and 2020, respectively, we recorded an impairment charge of $803 in the second quarter of 2020 and adjusted the carrying value of the investment accordingly, which was based on a discounted cash flow analysis, wherein we weighted different valuation scenarios with different assumed internal rates of return and time to liquidity events. In performing a qualitative impairment assessment, we determined that the carrying amount of the investment exceeded its fair value due to a significant decline in investee operating results relative to expectations, primarily as a result of the COVID-19 pandemic. During the fourth quarter of 2021, we recorded an upward adjustment of $739 and adjusted the carrying value of the investment accordingly, because a new investor agreed to purchase the underlying company, of which the purchase price consideration was a significant input relied upon for our fair value measurement.
For an additional investment with a fair value of $2,168 as of December 31, 2021, we recognized a gain of $3,967 during the year ended December 31, 2021, which also represents our cumulative adjustment on this security and which we valued based on the investee’s latest round of financing during the second quarter of 2021. We considered this recent equity transaction to be an orderly transaction in an issuance similar to our investment holding. Additionally, we sold a portion of our
investment during the year ended December 31, 2021 for $2,000 at the same valuation, contemporaneous with the investee’s latest round of financing.
During the fourth quarter of 2021, we made an additional non-securitization investment of $2,000. We did not make any adjustments to the investment value through December 31, 2021.
Non-securitization investments measured at fair value exclude our equity method investments, which are discussed further in Note 1.
Purchase Price Earn-Out
As of December 31, 2021, we had a derivative for a purchase price earn-out in conjunction with a loan sale agreement we entered into during 2018, as further discussed in Note 1. We receive a capped contractual payout based on the respective loan pool internal rate of return over a certain hurdle rate, which is adjusted for the loan purchaser’s expenses, which are generally immaterial. Prior to 2021, the purchase price earn-out value was immaterial. The fair value of the purchase price earn-out is determined using a discounted cash flow methodology. Management classifies the purchase price earn-out as Level 3 due to the use of significant unobservable inputs in the fair value measurement. A significant difference between the expected performance of the loans included in the loan sale agreement and the actual results as of the measurement date could result in a higher or lower fair value measurement. Our key valuation inputs were as follows as of the date indicated:
December 31, 2021
Purchase Price Earn-OutRangeWeighted Average
Conditional prepayment rate
22.9% – 22.9%
22.9%
Annual default rate
30.0% – 30.0%
30.0%
Discount rate
25.0% – 25.0%
25.0%
The key assumptions included in the above table are defined as follows:
•Conditional prepayment rate — The monthly annualized proportion of the principal of the pool of loans included in the loan sale agreement that is assumed to be paid off prematurely. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans included in the loan sale agreement. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the purchase price earn-out derivative. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.
The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
Purchase Price Earn-Out
Fair value as of January 1, 2021$— 
Initial recognition(1)
7,165 
Payments (5,040)
Changes in valuation inputs or assumptions
2,147 
Fair value as of December 31, 2021$4,272 
_____________________
(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $286 during the year ended December 31, 2021. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.
Warrant Liabilities – SoFi Technologies Warrants
Prior to the Business Combination, SCH issued 8,000,000 private placement warrants to SCH Sponsor V LLC (the “Sponsor”) and 20,125,000 public warrants (collectively, “SoFi Technologies warrants”). Upon the Closing of the Business Combination, the Company assumed the SoFi Technologies warrants. Each whole warrant entitles the holder to purchase one share of Class A common stock, subject to adjustment, for an exercise price of $11.50 per share. The SoFi Technologies warrants became exercisable on October 14, 2021, except as described herein.
Once the SoFi Technologies warrants became exercisable, the Company could redeem the outstanding warrants, in whole, upon a minimum 30 days’ prior written notice of redemption (“Redemption Period”) under one of two potential scenarios. For purposes of the redemption scenarios, the “Reference Value” represented the last reported sale price of SoFi Technologies common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption.
Prior to the Business Combination, SCH evaluated the public warrants and private placement warrants under ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity, and concluded that they did not meet the criteria to be classified in permanent equity. Specifically, the settlement feature for the private placement warrants precluded them from being considered indexed to SCH’s own stock, given that a change in the holder of the private placement warrants may have altered the settlement of the private placement warrants. Since the holder of the instrument was not an input to a standard option pricing model (a consideration with respect to the indexation guidance), the fact that a change in the holder may impact the value of the private placement warrants meant the private placement warrants were not indexed to the SCH’s own stock. Further, a provision in the warrant agreement related to certain tender or exchange offers precluded the public warrants and private placement warrants from being accounted for as components of permanent equity. Since the public warrants and private placement warrants met the definition of a derivative under ASC 815, SCH recorded these warrants as liabilities on the balance sheet at fair value, with subsequent changes in their respective fair values recognized in earnings in accordance with ASC 820.
As the accounting acquirer in the Business Combination, and because there were no changes to the terms and conditions of the warrant agreement, SoFi Technologies warrants continued to be classified as derivative liabilities subsequent to the Business Combination, subject to recurring fair value measurement under ASC 820, with changes in fair value recognized in the consolidated statements of operations and comprehensive income (loss) in the period of change.
Following the Business Combination, 28,125,000 shares of common stock were issuable upon the exercise of the SoFi Technologies warrants, which were initially valued at $200,250.
On November 4, 2021, we announced that we would redeem all outstanding SoFi Technologies warrants that remained outstanding at 5:00 p.m. New York City time on December 6, 2021 (the “Redemption Date”) for a redemption price of $0.10 per warrant. The Warrants were exercisable by the holders thereof until 5:00 p.m. New York City time on the Redemption Date to purchase fully paid and non-assessable shares of common stock underlying such warrants. Payment upon exercise of the warrants was made either (i) in cash, at an exercise price of $11.50 per share of common stock, or (ii) on a “cashless basis” in which the exercising holder received a number of shares of common stock determined in accordance with the terms of the warrant agreement and based on the Redemption Date and the volume weighted average price (the “fair market value”) of the common stock during the 10 trading days immediately following November 4, 2021, which the Company provided holders no later than one business day after the 10-trading day period ended. In no event did the number of shares of common stock issued in connection with an exercise on a cashless basis exceed 0.361 shares of common stock per warrant.
Any warrants that remained unexercised on the Redemption Date were void and no longer exercisable, and the holders of those warrants received the redemption price of $0.10 per warrant, which represented an immaterial cash payment by the Company. Following the Redemption Date, the Company had no SoFi Technologies warrants outstanding. In connection with the redemption, the SoFi Technologies Warrants ceased trading on the Nasdaq Global Select Market and were delisted, with the trading halt announced after close of market on December 6, 2021.
As a result of warrant exercises and redemptions, we issued 15,193,668 shares of common stock and received cash proceeds of $95,047, as well as reclassified $185,762 from liabilities to equity. The Company measured the fair value of the warrant liabilities on a daily basis determined as the opening number of warrants outstanding multiplied by the closing price of SOFIW and adjusted for any warrant exercises, with fair value changes recorded within noninterest expense—general and
administrative in the consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2021, we recorded fair value gains of $14,488.
v3.22.0.1
Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt Debt
The following table summarizes the Company’s principal outstanding debt, unamortized debt discounts/premiums and unamortized debt issuance costs as of the dates indicated:
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Student Loan Warehouse Facilities
SoFi Funding I$— 
1ML + 125 bps
April 2022$200,000 $— $374,575 
SoFi Funding III(6)
4,440 
PR – 134 bps
September 202475,000 3,930 30,170 
SoFi Funding V(7)
— 
1ML + 135 bps
May 2023350,000 — — 
SoFi Funding VI60,614 
3ML + 125 bps
March 2024600,000 56,709 432,437 
SoFi Funding VII313,726 
SOFR + 85 bps
 September 2024500,000 284,475 276,910 
SoFi Funding VIII269,254 
1ML + 90 bps
May 2022300,000 245,723 221,342 
SoFi Funding IX(8)
10,417 
SOFR+ 210 bps and
CP + 87.5 bps
 May 2025500,000 9,816 70,780 
SoFi Funding X(9)
33,423 
CP + 125 bps
 April 2024400,000 29,647 44,136 
SoFi Funding XI(10)
— 
CP + 115 bps
November 2023500,000 — 87,404 
SoFi Funding XII(11)
25,087 
CP + 115 bps
November 2024200,000 20,267 — 
SoFi Funding XIII481,731 
SOFR + 55 bps
April 2024450,000 424,348 — 
Total, before unamortized debt issuance costs$1,198,692 $4,075,000 $1,074,915 $1,537,754 
Unamortized debt issuance costs$(7,540)$(7,940)
Weighted average effective interest rate1.45 %2.29 %
Personal Loan Warehouse Facilities
SoFi Funding PL I(12)
$14,516 
CP + 137.5 bps
September 2023$250,000 $11,911 $— 
SoFi Funding PL II— 
3ML + 225 bps
July 2023400,000 — 137,420 
SoFi Funding PL III— 
1ML + 175 bps
May 2023250,000 — 2,793 
SoFi Funding PL IV(13)
— 
CP + 170 bps
November 2023500,000 — 132,416 
SoFi Funding PL VI(14)
— 
CP + 170 bps
September 202450,000 — 107,595 
SoFi Funding PL VII88,976 
1ML + 115 bps
June 2022250,000 71,572 15,610 
SoFi Funding PL X— 
1ML + 142.5 bps
February 2023200,000 — 3,004 
SoFi Funding PL XI— 
1ML + 170 bps
January 2022200,000 — 112,478 
SoFi Funding PL XII— 
1ML + (225-315 bps)
June 2021— — 127,724 
SoFi Funding PL XIII— 
1ML + 175 bps
January 2030300,000 — 219,362 
SoFi Funding PL XIV(15)
168,624 
1ML + 90 bps
October 2024300,000 144,662 — 
Total, before unamortized debt issuance costs$272,116 $2,700,000 $228,145 $858,402 
Unamortized debt issuance costs$(3,898)$(6,692)
Weighted average effective interest rate2.08 %3.63 %
Home Loan Warehouse Facilities
Mortgage Warehouse VI$— 
SOFR + 200 bps
October 2022$1,000 $— $— 
Total, before unamortized debt issuance costs$— $1,000 $— $— 
Weighted average effective interest rate— %— %
Credit Card Warehouse Facilities
SoFi Funding CC I LLC(16)
$14,471 
CP + 175 bps
October 2022$100,000 $11,810 $— 
Total, before unamortized debt issuance costs$14,471 $100,000 $11,810 $— 
Unamortized debt issuance costs
$(312)$— 
Weighted average effective interest rate6.39 %— %
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Risk Retention Warehouse Facilities(17)
SoFi RR Funding I$28,407 
3ML + 200 bps
January 2024$100,000 $22,608 $54,304 
SoFi RR Repo84,240 
3ML + 185 bps
June 2023192,141 69,843 75,863 
SoFi C RR Repo— 
3ML + (180-185 bps)
December 2021— 42,757 
SoFi RR Funding II109,204 
1ML + 125 bps
November 202498,031 160,199 
SoFi RR Funding III43,334 
1ML + 125 bps
November 202439,158 60,786 
SoFi RR Funding IV(7)
81,797 
1ML + 150 bps
October 2027100,000 66,555 37,334 
SoFi RR Funding V54,791 
298 bps
December 202529,453 — 
Total, before unamortized debt issuance costs$401,773 $325,648 $431,243 
Unamortized debt issuance costs$(2,086)$(2,052)
Weighted average effective interest rate2.00 %2.24 %
Revolving Credit Facility
SoFi Corporate Revolver(18)(19)
n/a
1ML + 100 bps
September 2023$560,000 $486,000 $486,000 
Total, before unamortized debt issuance costs$560,000 $486,000 $486,000 
Unamortized debt issuance costs$(626)$(987)
Weighted average effective interest rate1.18 %1.26 %
Convertible senior notes(20)
n/a0.00%October 2026$1,200,000 $— 
Total, before unamortized debt issuance costs and discount$1,200,000 $— 
Unamortized debt issuance costs$(1,634)$— 
Unamortized discount(22,858)— 
Weighted average effective interest rate0.43 %— %
Seller note(21)
n/a
1000 bps
February 2021$— $250,000 
Total$— $250,000 
Weighted average effective interest rate10.00 %10.00 %
Other financing – various notes(21)
n/a
331 – 547 bps
July 2021$— $4,375 
Total$— $4,375 
Weighted average effective interest rate3.58 %3.64 %
Student Loan Securitizations
SoFi PLP 2016-B LLC$48,821 
1ML + (120-380 bps)
April 2037$43,186 $69,448 
SoFi PLP 2016-C LLC55,662 
1ML + (110-335 bps)
May 203749,685 81,115 
SoFi PLP 2016-D LLC69,636 
1ML + (95-323 bps)
January 203961,760 93,942 
SoFi PLP 2016-E LLC81,975 
1ML + (85-443 bps)
October 204174,242 117,800 
SoFi PLP 2017-A LLC102,677 
1ML + (70-443 bps)
March 204092,972 146,064 
SoFi PLP 2017-B LLC86,686 
274 – 444 bps
May 204078,811 129,873 
SoFi PLP 2017-C LLC113,022 
1ML + (60-421 bps)
July 2040102,814 161,897 
Total, before unamortized debt issuance costs and discount$558,479 $503,470 $800,139 
Unamortized debt issuance costs$(3,851)$(5,958)
Unamortized discount(1,094)(1,654)
Weighted average effective interest rate3.30 %3.22 %
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Personal Loan Securitizations
SoFi CLP 2016-1 LLC$— 
326 bps
December 2021$— $36,546 
SoFi CLP 2016-2 LLC— 
477 bps
December 2021— 37,973 
SoFi CLP 2016-3 LLC— 
449 bps
September 2021— 30,780 
SoFi CLP 2018-3 LLC82,550 
402 – 467 bps
August 202776,535 163,784 
SoFi CLP 2018-4 LLC93,564 
417 – 476 bps
November 202786,835 184,831 
SoFi CLP 2018-3 Repack LLC— 
200 bps
March 2021— 2,457 
SoFi CLP 2018-4 Repack LLC— 
200 bps
June 2021— 5,853 
Total, before unamortized debt issuance costs, premiums and discount$176,114 $163,370 $462,224 
Unamortized debt issuance costs$(1,683)$(3,057)
Unamortized premium (discount)207 (2,872)
Weighted average effective interest rate4.58 %4.47 %
Total, before unamortized debt issuance costs, premiums and discounts
$3,993,358 $4,830,137 
Less: unamortized debt issuance costs, premiums and discounts(45,375)(31,212)
Total reported debt$3,947,983 $4,798,925 
_____________________
(1)As of December 31, 2021, represents unpaid principal balances, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances as presented may vary period to period due to the timing of the next scheduled payment to the warehouse facility.
(2)Unused commitment fees ranging from 0 to 75 basis points (“bps”) on our various warehouse facilities are recognized as noninterest expense—general and administrative in our consolidated statements of operations and comprehensive income (loss). “ML” stands for “Month LIBOR”. As of December 31, 2021, 1ML and 3ML was 0.10% and 0.21%, respectively. As of December 31, 2020, 1ML and 3ML was 0.14% and 0.24%, respectively. “SOFR” stands for “Secured Overnight Financing Rate”. As of December 31, 2021, SOFR was 0.05%. “PR” stands for “Prime Rate”. As of December 31, 2021 and 2020, PR was 3.25% and 3.25%, respectively.
(3)For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made.
(4)Represents total capacity as of December 31, 2021.
(5)There was a debt discount of $24,000 associated with the Convertible Notes discussed below and a debt premium of $335 issued during the year ended December 31, 2021. We paid $1,600 during 2021 related to debt issuance costs accrued in 2020.
(6)Warehouse facility has a prime rate floor of 309 bps.
(7)Warehouse facilities have a 1ML floor of 25 bps.    
(8)Warehouse facility incurs different interest rates on its two types of asset classes. One such class incurs interest based on a commercial paper (“CP”) rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.19% and 0.25%, respectively.
(9)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.24% and 0.28%, respectively.
(10)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.19% and 0.25%, respectively.
(11)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.19%. Under certain conditions, warehouse facility could incur an interest rate spread of 215 bps.
(12)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.18%. As of December 31, 2020, this facility incurred interest based on 1ML.
(13)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.16% and 0.25%, respectively.
(14)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.16%. As of December 31, 2020, this facility incurred interest based on 3ML.
(15)Warehouse facility expected to be subject to SOFR + 11.5 bps upon benchmark replacement.
(16)Warehouse facility incurs interest at a spread (as indicated in the table) plus the lower of (a) 3ML plus 35 bps or (b) the CP rate for this facility, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.24%.
(17)Financing was obtained for both asset-backed bonds and residual investments in various personal loan and student loan securitizations, and the underlying collateral are the underlying asset-backed bonds and residual investments. We only state capacity amounts in this table for risk retention facilities wherein we can pledge additional asset-backed bonds and residual investments as of December 31, 2021.
(18)As of December 31, 2021, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 16 for more details.
(19)Interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on PR.
(20)In the fourth quarter of 2021, we issued and sold convertible senior notes. See related section below for additional information.
(21)Part of our consideration to acquire Galileo was in the form of a seller note financing arrangement, which we paid off in February 2021. See Note 2 for additional information. We also assumed certain other financing arrangements resulting from our acquisition of Galileo, which we paid off during the third quarter of 2021.
Convertible Senior Notes
In October 2021, we issued $1.2 billion aggregate principal amount of Convertible Notes due 2026, pursuant to an indenture, dated October 4, 2021, between the Company and U.S. Bank National Association, as trustee. The Convertible Notes are unsecured, unsubordinated obligations. The Convertible Notes do not bear regular interest. The Convertible Notes will mature on October 15, 2026, unless earlier repurchased, redeemed or converted.
The net proceeds from the offering were $1.176 billion, after deducting the 2% initial purchasers’ discount of $24 million, and before the cost of the capped call transactions, as described below, and offering expenses payable by the Company. The debt issuance costs of $1.7 million included third-party legal and accounting fees. The original issue discount and debt issuance costs are amortized into interest expense—corporate borrowings in the consolidated statements of operations and comprehensive income (loss) using the effective interest method over the contractual term of the Convertible Notes. For the year ended December 31, 2021, total interest expense on the Convertible Notes was $1.2 million, related to amortization of debt discount and issuance costs.
We used a portion of the net proceeds to fund the cost of entering into the capped call transactions, as described in Note 12. The remainder of the net proceeds from the offering were used to pay related expenses and were allocated for general corporate purposes.
Conversion
The Convertible Notes are convertible by the noteholders prior to the close of business on the business day immediately preceding April 15, 2026, if certain conditions related to the Company’s share price are met, there are certain corporate events or distributions of the Company’s stock, or the Company calls the notes for redemption, each as set forth in the indenture. On and after April 15, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Convertible Notes are freely convertible by the noteholders. The conversion rate is 44.6150 shares of our common stock per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $22.41 per share of our common stock. As of December 31, 2021, the Convertible Notes are potentially convertible into 53,538,000 shares of common stock.
Settlement
We will settle conversions by paying or delivering, at our election, cash, shares of our common stock or a combination of cash and shares of our common stock, based on the applicable conversion rate(s). If we elect to deliver cash or a combination of cash and shares of our common stock, then the consideration due upon conversion will be determined over an observation period consisting of 30 “VWAP Trading Days” (as defined in the indenture). The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
Redemption
The Convertible Notes will also be redeemable, in whole or in part, at our option at any time, and from time to time, on or after October 15, 2024 through on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued interest, if any, thereon to, but excluding, the redemption date, but only if certain liquidity conditions described in the indenture are satisfied and certain conditions are met with respect to the last reported sale price per share of our common stock prior to conversion. In addition, calling any note for redemption will also constitute a Make-Whole Fundamental Change with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for redemption.
See Note 1 for our accounting policy as it relates to the Convertible Notes.
Material Changes to Debt Arrangements
During the year ended December 31, 2021, we:
•issued Convertible Notes, as discussed above;
•paid off the seller note issued in 2020 for a total payment of $269,864, consisting of outstanding principal of $250,000 and accrued interest of $19,864, and paid off the other financing arrangements assumed in connection with the acquisition of Galileo;
•opened two student loan warehouse facilities with an aggregate maximum available capacity of $650,000;
•opened one personal loan warehouse facility with a maximum available capacity of $300,000 and closed one personal loan warehouse facility that had a maximum available capacity of $250,000;
•had one home loan warehouse facility mature that had a maximum available capacity of $150,000;
•opened one credit card warehouse facility with a maximum available capacity of $100,000; and
•opened one risk retention warehouse facility.
Our warehouse and securitization debt is secured by a continuing lien and security interest in the loans financed by the proceeds. Within each of our debt facilities, we must comply with certain operating and financial covenants. These financial covenants include, but are not limited to, maintaining: (i) a certain minimum tangible net worth, (ii) minimum cash and cash equivalents, and (iii) a maximum leverage ratio of total debt to tangible net worth. Our debt covenants can lead to restricted cash classifications in our consolidated balance sheets. Our subsidiaries are restricted in the amount that can be distributed to the parent company only to the extent that such distributions would cause the financial covenants to not be met. We were in compliance with all financial covenants.
We act as a guarantor for our wholly-owned subsidiaries in several arrangements in the case of default. As of December 31, 2021, we have not identified any risks of nonpayment by our wholly-owned subsidiaries.
Maturities of Borrowings
As of December 31, 2021, future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows:
2022$— 
2023486,000 
2024— 
2025— 
20261,200,000 
Thereafter— 
Total$1,686,000 
v3.22.0.1
Temporary Equity
 12 Months Ended
Dec. 31, 2021
Temporary Equity Disclosure [Abstract]  
Temporary Equity Temporary Equity Pursuant to SoFi Technologies’ Certificate of Incorporation dated May 28, 2021, the Company is authorized to issue 100,000,000 shares of preferred stock having a par value of $0.0001 per share (“SoFi Technologies Preferred Stock”) and 100,000,000 shares of redeemable preferred stock having a par value of $0.0000025 per share (“SoFi Technologies Redeemable Preferred Stock”). The Company’s Board of Directors has the authority to issue SoFi Technologies Preferred Stock and SoFi Technologies Redeemable Preferred Stock and to determine the rights, preferences, privileges and restrictions, including voting rights, of those shares. The authorized shares of SoFi Technologies Redeemable Preferred Stock is inclusive of 4,500,000 shares of Series 1 redeemable preferred stock (“Series 1 Redeemable Preferred Stock”), which reflect the conversion on a one-for-one basis of shares of Social Finance Series 1 preferred stock in conjunction with the Business Combination. Shares of SoFi Technologies Series 1 Redeemable Preferred Stock that are redeemed, purchased or otherwise acquired by the Company will be
canceled and may not be reissued by the Company. The Series 1 Redeemable Preferred Stock remains classified as temporary equity because the Series 1 Redeemable Preferred Stock is not fully controlled by the issuer, SoFi Technologies. See “Series 1 Preference and Rights” for additional provisions of the SoFi Technologies Series 1 Redeemable Preferred Stock.
In addition to the Series 1 preferred stock, prior to the Business Combination, the Company had outstanding shares of Series A, Series B, Series C, Series D, Series E, Series F, Series G, Series H and Series H-1 preferred stock (collectively, “Preferred Stock”). Immediately prior to the Business Combination, all shares of the Company’s outstanding Preferred Stock, other than the Series 1 preferred stock, converted into a total of 465,832,666 shares of SoFi Technologies common stock on the following basis (15,000,000 of which were classified as redeemable common stock and immediately redeemed subsequent to the Business Combination):
•each share of Social Finance Series A, Series B, Series C, Series D, Series E and Series H-1 preferred stock was converted into the right to receive shares of SoFi Technologies common stock equal to the Exchange Ratio (as discussed in Note 2);
•each share of Social Finance Series F preferred stock was converted into the right to receive shares of SoFi Technologies common stock equal to 1.1102 multiplied by the Exchange Ratio;
•each share of Social Finance Series G preferred stock was converted into the right to receive shares of SoFi Technologies common stock equal to 1.2093 multiplied by the Exchange Ratio; and
•each share of Social Finance Series H preferred stock was converted into the right to receive shares of SoFi Technologies common stock equal to 1.0863 multiplied by the Exchange Ratio (except for shares of Series H preferred stock held by our Chief Executive Officer, which were converted into the right to receive shares of SoFi Technologies common stock equal to the Exchange Ratio).
As of December 31, 2021, there were no shares of SoFi Technologies Preferred Stock issued and outstanding and there were 3,234,000 shares of SoFi Technologies Series 1 Redeemable Preferred Stock issued and outstanding, which had an original issuance price of $100.00.
Recent Issuances and Redemptions
In conjunction with the Business Combination, we redeemed and canceled 15,000,000 shares of redeemable SoFi Technologies common stock for a purchase price of $150.0 million.
During December 2020, we exercised a call and redeemed certain shares of redeemable preferred stock, which were retired upon receipt and for which the cash payment was made in January 2021. See Note 15 for additional information.
Series 1 Preference and Rights
On January 7, 2021 the Company and (i) entities affiliated with Silver Lake, which is affiliated with Michael Bingle, one of the directors of SoFi, (ii) entities affiliated with the Qatar Investment Authority (“QIA”), which is affiliated with Ahmed Al-Hammadi, one of the directors of SoFi, and (iii) Mr. Noto, the Chief Executive Officer and one of the directors of SoFi, entered into the Amended and Restated Series 1 Preferred Stock Investors’ Agreement (the “Amended Series 1 Agreement”), which amended the Series 1 Preferred Stock Investors’ Agreement dated May 29, 2019 (the “Original Series 1 Agreement”). Under the Original Series 1 Agreement, the Series 1 preferred stock had limited price protection in the instance that the Company liquidated, finalized an initial public offering, or sold control of the Company to a third party, which events would have triggered a special payment provision. In conjunction with the Business Combination, the Amended Series 1 Agreement amended the original special payment provision to provide for a one-time special payment of $21.2 million to Series 1 preferred stockholders, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), as this feature was accounted for as an embedded derivative that was not clearly and closely related to the host contract, and will have no subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity.
In addition, in connection with the Business Combination, the Series 1 preferred stockholders entered into the Series 1 Registration Rights Agreement upon request by QIA, which provides Series 1 preferred stockholders with certain registration rights, provides for certain shelf registration filing obligations by SoFi and limits the future registration rights that SoFi may grant other parties.
Dividends
Prior to the Business Combination, no dividends were declared or paid subject to the preferred stock dividend provisions. Subsequent to the Business Combination, the dividend provisions were no longer in effect.
Pursuant to the SoFi Technologies Certificate of Incorporation, the SoFi Technologies Series 1 preferred stock are entitled to receive cumulative cash dividends from and including the date of issuance of such shares at a fixed rate equal to $12.50 per annum per share, or 12.5% per annum, of the SoFi Technologies Series 1 Redeemable Preferred Stock share price of $100.00 (“Series 1 Dividend Rate”). The Series 1 Dividend Rate resets to a new fixed rate on the fifth anniversary of May 29, 2019, the original Series 1 preferred stock issue date (“Series 1 Original Issue Date”) and on every subsequent one-year anniversary of the Series 1 Original Issue Date (“Dividend Reset Date”), equal to six-month LIBOR as in effect on the second London banking day prior to such Dividend Reset Date plus a spread of 9.94% per annum. Series 1 preferred stockholders prior to the Business Combination who received shares of SoFi Technologies Series 1 Redeemable Preferred Stock at the effective time of the Merger remained entitled to receive dividends accrued but unpaid as of the date of the Agreement in respect of such shares of Series 1 Redeemable Preferred Stock.
During the years ended December 31, 2021, 2020 and 2019, the Series 1 preferred stockholders were entitled to dividends of $40,426, $40,536 and $23,923, respectively. There were no dividends payable as of December 31, 2021 and 2020.
Dividends are payable semiannually in arrears on the 30th day of June and 31st day of December of each year, when and as authorized by the Board of Directors. The Company may defer any scheduled dividend payment for up to three semiannual dividend periods, subject to such deferred dividend accumulating and compounding at the applicable Series 1 Dividend Rate. If the Company defers any single scheduled dividend payment on the Series 1 Redeemable Preferred Stock for four or more semiannual dividend periods, the Series 1 Dividend Rate applicable to (i) the compounding following the date of such default on all then-deferred dividend payments (whether or not deferred for four or more semiannual dividend periods) is applied on a go-forward basis and not retroactively, and (ii) new dividends declared following the date of such default and the compounding on such dividends if such new dividends are deferred shall be equal to the otherwise applicable Series 1 Dividend Rate plus 400 basis points. This default-related increase shall continue to apply until the Company pays all deferred dividends and related compounding. Once the Company is current on all such dividends, it may again commence deferral of any pre-scheduled dividend payment for up to three semiannual dividend periods, following the same procedure as outlined in the foregoing. There were no dividend deferrals during the years ended December 31, 2021 and 2020.
Conversion
Subsequent to the Business Combination, the conversion provisions in respect of each series of preferred stock were no longer in effect, other than the Series 1 Redeemable Preferred Stock, which did not have any rights of conversion. Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 Redeemable Preferred Stock continue not to have any rights to convert into shares of any other class or series of securities of the Company.
Liquidation
Subsequent to the Business Combination, the liquidation provisions in respect of every series of preferred stock, other than Series 1 Redeemable Preferred Stock, were no longer in effect. Pursuant to the SoFi Technologies Certificate of Incorporation, with respect to rights to the distribution of assets upon the Company’s liquidation, dissolution or winding up, the Series 1 Redeemable Preferred Stock is senior to all classes or series of common stock, non-voting common stock, SoFi Technologies Preferred Stock and any other class or series of capital stock of the Company now or hereafter authorized, issued or outstanding that, by its terms, does not expressly provide that it ranks senior to or pari passu with the Series 1 Redeemable Preferred Stock.
Settlement Rights
Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 Redeemable Preferred Stock is redeemable at SoFi’s option in certain circumstances. SoFi may, at any time but no more than three times, at its option, settle the Series 1 Redeemable Preferred Stock, in whole or in part, but if in part, in an amount no less than (i) one-third of the total amount of Series 1 Redeemable Preferred Stock outstanding as of May 28, 2021 or (ii) the remainder of Series 1 Redeemable Preferred Stock outstanding (the “Minimum Redemption Amount”). In addition, SoFi may, at its option, settle for cash the Series 1 Redeemable Preferred Stock in whole, but not in part, within 120 days of the occurrence of a Change of Control (as that term is
defined in the SoFi Technologies Certificate of Incorporation), which would result in a payment of the initial purchase price of the Series 1 preferred stock of $323.4 million plus any unpaid dividends on such stock (whether deferred or otherwise) (the “Series 1 Redemption Price”). Such settlement is determined at the discretion of the Board of Directors. If any such optional redemption by the Company occurs either (i) prior to the fifth anniversary of the Series 1 Original Issue Date or (ii) after the fifth anniversary of the Series 1 Original Issue Date and not on a Dividend Reset Date, the Series 1 Redeemable Preferred Stock is entitled to receive an amount in cash equal to any such dividends that would have otherwise been payable to the holder on its redeemed shares of Series 1 Redeemable Preferred Stock for all dividend periods following the applicable optional redemption date up to and including the Dividend Reset Date immediately following such optional redemption date.
If the Series 1 Redeemable Preferred Stock is not earlier redeemed by the Company, each holder of Series 1 Redeemable Preferred Stock has the right to require SoFi to settle for cash some or all of their Series 1 Redeemable Preferred Stock, in each case at the Series 1 Redemption Price, in the following circumstances: (i) within 120 days of the occurrence of a Change of Control, or (ii) during the six-month period following (a) a default in payment of any dividend on the Series 1 Redeemable Preferred Stock, or (b) the cure period for any covenant default under the SoFi Technologies Certificate of Incorporation. The Series 1 preferred stock had similar redemption provisions under the Original Series 1 Agreement. Pursuant to the Amended Series 1 Agreement, in January 2021, the Series 1 preferred stockholders waived their rights in the event of a liquidation, including the right to immediately receive the Series 1 proceeds. Therefore, the Series 1 preferred stock redemption value remained at $323.4 million subsequent to the Business Combination. The Series 1 Redeemable Preferred Stock remains in temporary equity following the Business Combination because the Series 1 Redeemable Preferred Stock is not fully controlled by SoFi.
Voting Rights
Subsequent to the Business Combination, the liquidation provisions in respect of every series of preferred stock, other than Series 1 Redeemable Preferred Stock, were no longer in effect. Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 preferred stockholders do not have explicit board of director rights.
Warrants
In connection with the Series 1 and Series H preferred stock issuances during the year ended December 31, 2019, we also issued 12,170,990 Series H warrants, which were initially accounted for as liabilities in accordance with ASC 480, and were included within accounts payable, accruals and other liabilities in the consolidated balance sheets. At inception, we allocated $22.3 million of the $539.0 million of proceeds we received from the Series 1 and Series H preferred stock issuances to the Series H warrants (which was reduced by $2.4 million of direct costs), with such valuation determined using the Black-Scholes Model, in order to establish an initial fair value for the Series H warrants. The remaining proceeds were allocated to the Series 1 and Series H preferred stock balances based on their initial relative fair values. This resulted in an initial allocation of $193.9 million and $320.4 million to the Series H and Series 1 preferred stock, respectively. The Series H preferred stock was converted into shares of SoFi Technologies common stock in conjunction with the Business Combination.
Subsequent to the initial measurement and until the Business Combination, the Series H warrants were measured at fair value on a recurring basis and classified as Level 3 because of our reliance on unobservable assumptions, with fair value changes recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss). On May 28, 2021, in conjunction with the Closing of the Business Combination, we measured the final fair value of our Series H warrants. Subsequently, we reclassified the Series H warrant liability of $161,775 into permanent equity, as the terms of the Series H instrument no longer necessitated liability accounting. Therefore, we did not measure the warrants at fair value subsequent to May 28, 2021.
The key inputs into our Black-Scholes Model valuation as of December 31, 2020 and as of May 28, 2021, the final measurement date, were as follows:
InputMay 28, 2021December 31, 2020
Risk-free interest rate0.3 %0.2 %
Expected term (years)2.93.4
Expected volatility33.9 %32.6 %
Dividend yield— %— %
Exercise price$8.86 $8.86 
Fair value of Series H preferred stock$21.89 $9.74 
The Company’s use of the Black-Scholes Model required the use of subjective assumptions:
•The risk-free interest rate assumption was initially based on the five-year U.S. Treasury rate, which was commensurate with the expected term of the warrants. At inception, we assumed that the term would be five years, given by design the warrants were only expected to extend for greater than five years if the Company was still not publicly traded by that point in time. The expected term assumption used reflects the five-year term less time elapsed since initial measurement. An increase in the expected term, in isolation, would typically correlate to a higher risk-free interest rate and result in an increase in the fair value measurement of the warrant liabilities and vice versa. See below for a development in connection with the Business Combination.
•Our expected volatility assumptions reflected the expectation that the Series H warrants would convert into common stock upon consummation of the Business Combination, and the Series H preference would be of no further effect, in which case the Series H preference would not have a material impact on the stock volatility measure. As such, the expected volatility assumptions reflect our common stock volatilities as of May 28, 2021 and December 31, 2020. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa.
•The fair value measurement of the Series H preferred stock as of December 31, 2020 was informed from a common stock transaction during December 2020 at a price of $10.57 per common share. We determined that this common stock transaction was a reasonable proxy for the valuation of the Series H preferred stock as of December 31, 2020 due to the proximity to an expected Business Combination; therefore, other than adjusting for the Series H exchange ratio, no further adjustments were made for the Series H concluded price per share. As of May 28, 2021, the fair value measurement of the Series H redeemable preferred stock was determined based on the observable closing price of SCH stock (ticker symbol “IPOE”) on the measurement date multiplied by the weighted average exchange ratio of the Series H preferred stock.
•We assumed no dividend yield because we have historically not paid out dividends to our preferred stockholders, other than to the Series 1 preferred stockholders, which is considered a special circumstance.
The following table presents the changes in the fair value of the Series H warrant liabilities during the periods prior to the Closing of the Business Combination.
Warrant Liabilities
Fair value as of January 1, 2020$19,434 
Change in valuation inputs or other assumptions(1)
20,525 
Fair value as of December 31, 2020$39,959 
Change in valuation inputs or other assumptions(1)
121,816 
Reclassification to permanent equity in conjunction with the Business Combination(2)
(161,775)
Fair value as of December 31, 2021$— 
_____________________
(1)Changes in valuation inputs or other assumptions are recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
(2)Upon the Closing of the Business Combination, Social Finance Series H warrants were converted into SoFi Technologies common stock warrants and reclassified to permanent equity, as the warrants no longer had features requiring liability based accounting and, therefore, represented a non-cash activity.
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Permanent Equity
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Permanent Equity Permanent Equity
On June 1, 2021, the Company’s common stock and warrants began trading on the Nasdaq Global Select Market under the ticker symbols “SOFI” and “SOFIW”, respectively. Pursuant to SoFi Technologies’ Certificate of Incorporation, the Company is authorized to issue 3,000,000,000 shares of common stock, with a par value of $0.0001 per share, and 100,000,000 shares of non-voting common stock, with a par value of $0.0001 per share. As of December 31, 2021, the Company had 828,154,462 shares of common stock and no shares of non-voting common stock issued and outstanding. See Note 11 for additional information on Social Finance preferred stock that was converted into SoFi Technologies common stock in conjunction with the Business Combination.
During December 2020, we issued 34,973,294 shares of common stock for gross proceeds received of $369.8 million, which was offset by direct legal costs of $56 (the “Common Stock Issuance”). The number of shares issued in the Common Stock Issuance was subject to upward adjustment if we consummated the Business Combination described in Note 2, with the amount of the adjustment based on the implied per-share consideration in the Business Combination and the number of shares of our capital stock issued in certain dilutive issuances prior to the Closing of the Business Combination. The adjustment resulted in the issuance of an additional 1,281,132 shares at the time of the Closing of the Business Combination.
The Company reserved the following common stock for future issuance as of the dates indicated:
December 31,
20212020
Outstanding stock options, RSUs and PSUs92,829,067 74,549,561 
Outstanding common stock warrants12,170,990 — 
Conversion of Convertible Notes(1)
53,538,000 — 
Possible future issuance under stock plans32,470,481 33,422,273 
Conversion of outstanding redeemable preferred stock— 465,916,522 
Unissued redeemable preferred stock reserved for issued warrants— 12,170,990 
Unissued redeemable preferred stock— 86,925,094 
Contingent common stock— 320,649 
Total common stock reserved for future issuance191,008,538 673,305,089 
_____________________
(1)As of December 31, 2021, represented the number of common stock issuable upon conversion of all Convertible Notes at the conversion rate in effect at the balance sheet date, in accordance with ASU 2020-06. See Note 1 and Note 10 for additional information.
Dividends
Common stockholders and non-voting common stockholders are entitled to dividends when and if declared by the Board of Directors. There were no dividends declared or paid to common stockholders during the years ended December 31, 2021 and 2020.
Voting Rights
Each holder of common stock has the right to one vote per share of common stock and is entitled to notice of any stockholder meeting. Non-voting common stock does not have any voting rights or other powers.
Capped Call Transactions
During 2021, we entered into privately negotiated Capped Call Transactions for a total cost of $113.8 million. The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the Convertible Notes. The Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of Convertible Notes and/or offset any potential cash payments we
are required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions allow the Company to purchase shares of our common stock at a strike price equal to the initial conversion price of approximately $22.41 per share, and are subject to a cap of $32.02 per share, subject to certain adjustments under the terms of the Capped Call Transactions. Capped Call Transactions are subject to automatic exercise if they are in-the-money as of certain expiration dates during September and October 2026. Settlement is subject to acceleration pursuant to the occurrence of certain corporate events, as well as postponement no later than January 12, 2027.
See Note 1 for our accounting policy as it relates to the Capped Call Transactions.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) (“AOCI”) primarily consists of accumulated net unrealized gains or losses associated with our investments in AFS debt securities, which commenced during the third quarter of 2021, and foreign currency translation adjustments, which historically have been immaterial.
The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive income (loss) for the years indicated.
AFS Debt SecuritiesForeign Currency Translation AdjustmentsTotal
Year Ended December 31, 2021
AOCI, beginning balance$— $(166)$(166)
Other comprehensive income (loss) before reclassifications(1)
(1,459)46 (1,413)
Amounts reclassified from AOCI into earnings108 — 108 
Net current-period other comprehensive income (loss)(2)
(1,351)46 (1,305)
AOCI, ending balance$(1,351)$(120)$(1,471)
Year Ended December 31, 2020
AOCI, beginning balance$— $(21)$(21)
Other comprehensive loss before reclassifications(1)
— (145)(145)
Net current-period other comprehensive loss(2)
— (145)(145)
AOCI, ending balance$— $(166)$(166)
_____________________
(1)Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We did not have investments in AFS debt securities during the year ended December 31, 2020. Additionally, there were no reclassifications related to foreign currency translation adjustments during the years ended December 31, 2021 and 2020.
(2)There were no tax impacts during the years presented due to reserves against deferred tax assets in jurisdictions where other comprehensive income activity was generated.

For gross amounts of realized gains and losses on our investments in AFS debt securities, see Note 4. Interest income associated with our investments in AFS debt securities recognized within interest income—other during the year ended December 31, 2021 was immaterial.
v3.22.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
2011 Stock Option Plan
Prior to the Business Combination, the Company’s Amended and Restated 2011 Stock Option Plan (the “2011 Plan”) allowed the Company to grant shares of common stock to employees, non-employee directors and non-employee third parties. As of December 31, 2021, outstanding awards to non-employee third parties under the 2011 Plan were not material. The Company also had shares authorized under a stock plan assumed in a 2020 business combination , which were assumed by the 2011 Plan. Upon the Closing, the remaining unallocated share reserve under the 2011 Plan was cancelled and no new awards
may be granted under such plan. Awards outstanding under the 2011 Plan were assumed by SoFi Technologies upon the Closing and continue to be governed by the terms of the 2011 Plan.
2021 Stock Option and Incentive Plan
In connection with the Closing of the Business Combination, the Company adopted the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which authorized for issuance 63,575,425 shares of common stock in connection with the Business Combination. The number of authorized shares will increase on the first day of each fiscal year beginning with SoFi Technologies’ 2022 fiscal year, as prescribed in the 2021 Plan. The 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (including performance stock units), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool.
During the years ended December 31, 2021, 2020 and 2019, we incurred cash outflows of $42,644, $31,259 and $21,411, respectively, related to the payment of withholding taxes for vested RSUs. These cash outflows are presented within net cash (used in) provided by financing activities in the consolidated statements of cash flows.
Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the consolidated statements of operations and comprehensive income (loss) for the years indicated:
Year Ended December 31,
202120202019
Technology and product development$61,431 $28,271 $16,107 
Sales and marketing16,140 8,045 4,192 
Cost of operations11,743 6,067 1,678 
General and administrative149,697 57,487 38,959 
Total$239,011 $99,870 $60,936 
During the year ended December 31, 2021, we issued 18,058 shares of common stock to non-employees, which were valued on the grant date based on the closing price of SOFI. During the year ended December 31, 2020, we had equity-based payments to non-employees associated with our acquisition of Galileo.
Common Stock Valuations
Prior to us contemplating a public market transaction, we established the fair value of our common stock by using the option pricing model (Black-Scholes Model based) via the backsolve method and through placing weight on previously redeemable preferred stock transactions, such as our Series H redeemable preferred stock transactions during 2019, Series H-1 redeemable preferred stock transaction during 2020 and a secondary market transaction involving our Series F preferred stock during 2020, transactions in our common stock during the period and a guideline public company multiples analysis. Our use of the Black-Scholes Model required the use of subjective assumptions, including the risk-free interest rate, expected term, expected stock price volatility and dividend yield. The risk-free interest rate assumption was based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of our stock options. The expected term represented the period of time the stock options were expected to be outstanding and was based on the simplified method. Under the simplified method, the expected term of a stock option is presumed to be the midpoint between the vesting date and the end of the contractual term. Management used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected term of the stock options. Expected volatility was based on historical volatility for publicly traded stock of comparable companies over the estimated expected life of the stock options. In identifying comparable companies, we considered factors such as industry, stage of life cycle and size. The valuations also applied discounts for lack of marketability to reflect the fact that there was no market mechanism to sell our common stock and, as such, the common stock option and RSU holders would need to wait for a liquidity event to facilitate the sale of their equity awards. In addition, there were contractual transfer restrictions placed on common stock in the event that we remained a private company.
During the third quarter of 2020, once we made intentional progress toward pursuing a public market transaction, we began applying the probability-weighted expected return method to determine the fair value of our common stock. The
probability weightings assigned to certain potential exit scenarios were based on management’s expected near-term and long-term funding requirements and assessment of the most attractive liquidation possibilities at the time of the valuation. During this process, we assigned probability weightings to “go public” event scenarios and a “stay private” scenario, wherein the enterprise valuation was based on either estimated exit valuations determined from conversations held with external parties or was based on public company comparable net book value multiples at the time of our valuation, respectively. In addition, our “stay private” scenario valuation approach continued to rely on a guideline public company multiples analysis with an option pricing model to determine the amount of aggregate equity value allocated to our common stock.
During the fourth quarter of 2020, we valued our common stock on a monthly basis. A common stock transaction that closed in December 2020 at a price of $10.57 per common share, which was of substantial size and in close proximity to the Business Combination, served as the key input for the fair value of our common stock for grants made during the fourth quarter of 2020. We decreased the assumed discount for lack of marketability throughout the fourth quarter of 2020, corresponding with our decreased time to liquidity assumption throughout the quarter, as we became more certain over time about the possibility of entering into the Business Combination. We continued to use a share price of $10.57 to value our common stock for transactions in January until the date on which we executed the Agreement.
Subsequent to executing the Agreement on January 7, 2021 and through the Business Combination, we determined the value of our common stock based on the observable daily closing price of SCH’s stock (ticker symbol “IPOE”) multiplied by the exchange ratio in effect for such transaction date. Subsequent to the Business Combination, we determined the value of our common stock based on the observable daily closing price of SoFi’s stock (ticker symbol “SOFI”).
Stock Options
The terms of the stock option grants, including the exercise price per share and vesting periods, are determined by our Board of Directors. At the discretion and determination of our Board of Directors, the 2021 Plan allows for stock options to be granted that may be exercised before the stock options have vested. The 2011 Plan, which continues to govern awards outstanding under that plan that were assumed by SoFi Technologies upon the Closing, had a similar provision.
Stock options are typically granted at exercise prices equal to the fair value of our common stock at the date of grant. Our stock options typically vest at a rate of 25% after one year from the vesting commencement date and then monthly over an additional three-year period. While the vesting schedule noted is typical, stock options have been issued under other vesting schedules. These alternative schedules include, but are not limited to (i) vesting at a rate of 20% after one year from vesting commencement date and then monthly over an additional four years, (ii) monthly vesting beginning on the vesting commencement date for a period of four years, and (iii) monthly vesting beginning on the vesting commencement date for a period of two years. Our stock options expire ten years from the grant date or within 90 days of employee termination.
The following is a summary of stock option activity for the year ended December 31, 2021:
Number of
Stock Options		Weighted Average
Exercise Price		Weighted Average
Remaining
Contractual Term
(in years)
Outstanding as of January 1, 202117,183,828 $9.92 6.6
Retroactive conversion of stock options due to Business Combination12,764,147 (4.23)
Outstanding as of January 1, 2021, as converted29,947,975 5.69 6.6
Granted— n/a
Exercised(8,523,468)2.95 
Forfeited(110,179)1.63 
Expired(143,181)6.35 
Outstanding as of December 31, 202121,171,147 $6.81 5.8
Exercisable as of December 31, 202120,902,650 $6.83 5.8

The following table summarizes the inputs used for estimating the fair value of stock options granted during the year ended December 31, 2020. There were no stock options granted during the years ended December 31, 2021 and 2019. During
the year ended December 31, 2020, the inputs disclosed below exclude those associated with certain replacement options granted in connection with our acquisition of Galileo in 2020.
Year Ended
December 31, 2020
Input
Risk-free interest rate
0.3% – 1.4%
Expected term (years)
5.5 – 6.0
Expected volatility
36.5% – 42.5%
Fair value of common stock
$6.43 – $6.95
Dividend yield—%
The weighted average grant date fair value of stock options granted during the year ended December 31, 2020 was $2.44. Total compensation cost related to unvested stock options not yet recognized as of December 31, 2021 was $5.8 million, and will be recognized over a weighted average period of approximately 1.2 years. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021, 2020 and 2019 was $131.2 million, $13.6 million and $13.4 million, respectively. As of December 31, 2021, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $190.5 million and $187.6 million, respectively.
Restricted Stock Units
The Company began issuing RSUs to its employees in 2017. RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. RSUs granted to newly hired employees typically vest 25% on the first vesting date, which occurs approximately one year after the date of grant, and ratably each quarter of the ensuing 12-quarter period. RSUs have been issued under other vesting schedules. These alternative schedules include, but are not limited to, (i) vesting at a rate of 20% after one year from vesting commencement date and then monthly over an additional four years, (ii) vesting at a rate of 25% after one year and then monthly over an additional three years, and (iii) other vesting schedules ranging in total duration from one to four years. During the year ended December 31, 2020, we also made RSU grants to certain executive officers in which vesting commences approximately two years after the date of grant and then quarterly over an additional two years. RSUs are measured based on the fair value of our common stock on the date of grant.
The weighted average fair value of our common stock was $18.02, $7.67, and $6.47 during the years ended December 31, 2021, 2020 and 2019, respectively.
The following table summarizes RSU activity for the year ended December 31, 2021:
Number of
RSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 202125,591,913$13.06 
Retroactive conversion of RSUs due to Business Combination19,009,673(5.57)
Outstanding as of January 1, 2021, as converted44,601,5867.49 
Granted27,481,63816.92 
Vested(1)
(16,427,162)8.50 
Forfeited(6,968,538)9.25 
Outstanding as of December 31, 2021(2)
48,687,524$12.23 
_____________________
(1)The total fair value, based on grant date fair value, of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $139.6 million, $76.3 million, and $50.4 million, respectively.
(2)Includes 178,021 RSUs that were granted in 2020 with an original vest date in June 2021 to earn the first tranche of compensation for the 2020 plan period. However, upon determining that the original performance-based vesting condition would not be satisfied, the Company modified the awards to extend the vesting date by 12 months. We concluded that the facts and circumstances aligned with an improbable-to-probable modification (Type III) and the vesting condition of the modified awards is a service-based condition. As a result, we reversed previously recognized share-based compensation expense of $1,237 in June 2021. For the modified awards, we will record total share-based compensation expense of $3,884 determined based on the number of awards expected to vest and the modification-date fair value over the 12-month service period, of which $2,132 was recorded during the year ended December 31, 2021.
The weighted average grant date fair value of RSUs issued during the years ended December 31, 2020 and 2019 was $7.79 and $6.47, respectively. As of December 31, 2021, there was $540.6 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 3.1 years.
Performance Stock Units
PSUs are equity awards granted to employees that, upon vesting, entitle the holder to shares of our common stock. Under the 2021 Plan, we granted PSUs that will vest, if at all, on a graded basis during the four-year period commencing on May 28, 2022, subject to the achievement of specified performance goals, such as the volume-weighted average closing price of our stock over a 90-trading day period (“Target Hurdles”) and, now that we are a bank holding company, maintaining certain minimum standards applicable to bank holding companies. All PSUs are subject to continued employment on the date of vesting. In the event of a Sale Event (as defined in the 2021 Plan), the awards may automatically vest subject to the satisfaction of the Target Hurdles by reference to the sale price, without regard to any other vesting conditions.
The following table summarizes PSU activity for the year ended December 31, 2021:
Number of
PSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2021—n/a
Granted
23,141,462$9.50 
Vested—n/a
Forfeited
(171,066)7.50
Outstanding as of December 31, 2021
22,970,396$9.52 
Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determine the grant-date fair values of PSUs utilizing a Monte Carlo simulation model. The following table summarizes the inputs used for estimating the fair values of PSUs granted during the year indicated:
Year Ended
InputDecember 31, 2021
Risk-free interest rate
0.8% – 0.8%
Expected volatility
34.9% – 35.9%
Fair value of common stock
$16.99 – $23.21
Dividend yield
0% – 0%
Our use of a Monte Carlo simulation model requires the use of subjective assumptions:
•The risk-free interest rate assumptions were based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs.
•The expected volatility assumptions were based on the implied volatility of our common stock from a set of comparable publicly-traded companies.
•The fair values of our common stock were based on the closing stock price on the dates of grant.
•We assumed no dividend yield because we have historically not paid out dividends to common stockholders.
As of December 31, 2021, there was $164.1 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 1.7 years.
v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes consisted of the following for the years presented:
Year Ended December 31,
202120202019
Domestic$(461,023)$(316,252)$(238,533)
Foreign(20,154)(12,269)(1,066)
Loss before income taxes$(481,177)$(328,521)$(239,599)
Income tax expense (benefit) consisted of the following for the years presented:
Year Ended December 31,
202120202019
Current tax expense:
U.S. federal
$— $— $— 
U.S. state and local
1,481 23 17 
Foreign
75 13 29 
Total current tax expense
1,556 36 46 
Deferred tax expense (benefit):
U.S. federal
— (70,692)(34)
U.S. state and local
1,222 (33,823)94 
Foreign
(18)11 (8)
Total deferred tax expense (benefit)
1,204 (104,504)52 
Income tax expense (benefit)
$2,760 $(104,468)$98 
Income taxes for the year ended December 31, 2021 were primarily due to the profitability of SoFi Lending Corp., which incurs income tax expense in some state jurisdictions where separate company filings are required. The significant change in our income tax positions for the years ended December 31, 2021 and 2019 relative to 2020 was primarily due to a partial release of our valuation allowance in the second quarter of 2020 in connection with deferred tax liabilities resulting from intangible assets acquired from Galileo in May 2020.
A reconciliation of the expected income tax benefit at the statutory federal income tax rate to the income tax expense (benefit) at the effective income tax rate was as follows for the years presented:
Year Ended December 31,
202120202019
Expected income tax benefit at federal statutory rate$(101,047)$(68,921)$(50,316)
Valuation allowance for deferred tax assets92,197 (9,445)53,431 
State and local income taxes, net of federal benefit2,096 (26,681)52 
Research and development tax credits(7,067)(6,883)(5,469)
Change in fair value of warrants22,539 4,310 (595)
Non-deductible compensation expense(1)
23,838 — — 
Share-based compensation(2)
(33,950)(939)(66)
Other(2)
4,154 4,091 3,061 
Income tax expense (benefit)$2,760 $(104,468)$98 
Effective tax rate(0.57)%31.80 %(0.04)%
_____________________
(1)Reflects the impact of applying Section 162(m), which prohibits deduction of certain excess employee compensation to certain “covered employees”.
(2)We modified the presentation in the current period to separately present the share-based compensation component of non-deductible expenses. The remaining non-deductible expenses are included within “other”. We reclassified amounts for the prior periods to conform to the current period presentation.

A reconciliation of unrecognized tax benefits was as follows for the years presented:
Year Ended December 31,
202120202019
Unrecognized tax benefits at beginning of year$5,117 $4,307 $1,928 
Gross increases – tax positions in prior period582 55 1,306 
Gross decreases – tax positions in prior period— (331)(11)
Gross increases – tax positions in current period1,273 1,086 1,084 
Unrecognized tax benefits at end of year$6,972 $5,117 $4,307 
None of the unrecognized tax benefits as of the end of each annual period presented, if recognized, would affect our effective tax rate in a future period, as the tax benefit would increase a deferred tax asset, which is offset with a full valuation allowance. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions; however, we do not expect any other significant increases or decreases to unrecognized tax benefits within the next twelve months. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense (benefit). No interest and penalties were recorded during the years ended December 31, 2021, 2020, and 2019. As of December 31, 2021 and 2020, no accrued interest and penalties were recorded.
The significant components of the Company’s net deferred tax liabilities were as follows as of the dates indicated:
December 31,
20212020
Deferred tax assets:
Net operating loss carryforwards$336,444 $230,866 
Operating lease liabilities29,206 29,340 
Share-based compensation19,473 16,876 
Research and development credits35,416 25,538 
Accruals and other18,610 15,347 
Gross deferred tax assets439,149 317,967 
Valuation allowance(266,448)(141,101)
Total deferred tax assets$172,701 $176,866 
Deferred tax liabilities:
Depreciation$(3,555)$(4,951)
Amortization(86,081)(95,819)
Operating lease ROU assets(25,546)(26,121)
Servicing rights(47,585)(41,556)
Securitization investments(9,323)(7,268)
Other(2,398)(1,734)
Total deferred tax liabilities(174,488)(177,449)
Net deferred tax liabilities$(1,787)$(583)
The following table details the activity of the deferred tax asset valuation allowance during the years indicated:
Balance at Beginning of Period
Additions
Deductions(2)
Balance at End of Period
Charged to Costs and Expenses
Charged to Other Accounts(1)
Year Ended December 31, 2019
Deferred tax asset valuation allowance
$77,644 $70,782 $— $— $148,426 
Year Ended December 31, 2020
Deferred tax asset valuation allowance
148,426 87,552 4,916 (99,793)141,101 
Year Ended December 31, 2021
Deferred tax asset valuation allowance
141,101 125,347 — — 266,448 
_____________________
(1)Additions charged to other accounts for the year ended December 31, 2020 related to the increase in our valuation allowance in connection with net deferred tax assets acquired in our acquisition of 8 Limited in April 2020.
(2)Deductions for the year ended December 31, 2020 related to the release of our valuation allowance in connection with deferred tax liabilities acquired in our acquisition of Galileo in May 2020.
In assessing the realizability of deferred tax assets, management reviews all available positive and negative evidence.
During the years ended December 31, 2021, 2020, and 2019, we maintained a full valuation allowance against our net deferred tax assets, which was established in 2018, in applicable jurisdictions, increasing our valuation allowance by $125,347, $87,552 and $70,782, respectively.
Additionally, in 2020, we increased our valuation allowance by $4,916 in connection with the acquisition of net operating loss deferred tax assets from 8 Limited, and decreased our valuation allowance by $99,793 due to deferred tax liabilities resulting from intangible assets acquired from Galileo. The deferred tax liabilities arising from our acquisition of intangible assets from Galileo provided for additional sources of income whereby the valuation allowance against pre-combination deferred tax assets could be reduced, which resulted in a tax benefit recognized for the year.
In certain state jurisdictions where sufficient deferred tax liabilities exist, no valuation allowance is recognized. Management reviews all available positive and negative evidence in assessing the realizability of deferred tax assets. We will continue to recognize a full valuation allowance until there is sufficient positive evidence to support its release.
The following table provides information about the Company’s net operating loss carryforwards by jurisdiction as of the date indicated:
December 31, 2021Expiration
U.S. federal(1)
$209,564 2031 – 2037
945,177 Indefinite
U.S. state(2)
1,029,763 2022 – 2041
206,333 Indefinite
Foreign59,206 Indefinite
_____________________
(1)Federal net operating loss carryforwards generated in periods after December 31, 2017 are subject to an 80% limitation when used in future tax periods as a result of the Tax Cuts and Jobs Act (“TCJA”) passed in 2017. The CARES Act provided for the temporary elimination of the 80% limitation for any net operating loss utilization prior to January 1, 2021.
(2)State conformity to either TCJA or the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law in March 2020, is established by each state’s local statutes and conformity to one act does not require conformity to both acts.
Federal and state research and development tax credits were $42,462 as of December 31, 2021, and, if not utilized, will expire at various dates beginning in 2031.
The Company files a federal income tax return in the United States and also files in various state and foreign jurisdictions. As of December 31, 2021, all federal and state tax returns of the Company remain subject to examination by the
respective taxing authorities since its inception in 2011, with the exception of the Company’s New York tax returns for the years 2013 through 2015.
v3.22.0.1
Related Parties
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Parties Related Parties
The Company defines related parties as members of our Board of Directors, entity affiliates, executive officers and principal owners of the Company’s outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over the Company’s management or operations.
Stockholder Note
In 2019, we entered into a $58,000 note receivable agreement with a stockholder (“Note Receivable Stockholder”), which was collateralized by the Note Receivable Stockholder’s common stock and redeemable preferred stock. Related to this collateralization, the Company obtained call rights to purchase the collateral at $5.05 per share (“Call Option Rights”). As of December 31, 2020, there was no remaining receivable associated with this related party note; however, our Call Option Rights remained outstanding post settlement, per the terms of our Note Receivable Stockholder agreement. During the year ended December 31, 2020, we recognized related party income of $1,764. In December 2020, we exercised our Call Option Rights to acquire the Note Receivable Stockholder collateral, which included 104,132 shares of common stock and 26,941,263 shares of redeemable preferred stock. The Call Option Rights shares were retired upon receipt. The option exercise payable of $133,385 remained outstanding as of December 31, 2020 and the reserved funds were presented within restricted cash and restricted cash equivalents in the consolidated balance sheets. The full payment was subsequently made in January 2021.
Apex Loan
In November 2019, we lent $9,050 to Apex at an interest rate of 12.5% per annum. We recognized related party interest income of $124 during the year ended December 31, 2019. In August 2020, we extended the maturity date to August 31, 2021 and modified the interest rate to 5.0% per annum, which we determined to be below the market rate of interest. In accordance with ASC 835-30, Interest — Imputation of Interest, during the year ended December 31, 2020, we recognized a loss of $319 within noninterest income—other in the consolidated statements of operations and comprehensive income (loss) representing the discounted fair value of the loan receivable relative to its stated value at the market rate of interest, which is accreted into interest income over the remaining term of the loan. During 2020, we lent an additional $7,643 to Apex. We had an interest income receivable of $1,443 as of December 31, 2020. In February 2021, Apex paid us $18,304 in settlement of all of their outstanding obligations to us, which consisted of outstanding principal balances of $16,693 and accrued interest of $1,611.
During the year ended December 31, 2021, we recognized interest income of $211 within interest income—related party notes, and we reversed the remainder of the loss for the discount to fair value that had not yet been accreted of $169 within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2020, we recognized interest income of $1,425, which included interest related to the principal balances of $1,319 and interest related to the discount accretion of $106.
Equity Method Investments
Our interest in Apex was deemed significant under Rule 4-08(g). The seller of the Apex interest had a Seller Call Option over our equity interest in Apex, which the seller exercised during January 2021. In 2021, we also entered into an equity method investment arrangement with Lower, which was not deemed to be significant. See Note 1 under “Equity Method Investments” for additional information. We also had an equity method investment in a residential mortgage origination joint venture that we exited in the third quarter of 2020, which was not deemed significant for the relevant periods. The following tables present summarized financial information for the entities in which we have equity method investments on an aggregated basis since the dates of acquisition:
As of December 31,
2021(1)
2020(2)
Total assets
$659,341 $10,254,902 
Total liabilities
540,642 10,032,736 
_____________________
(1)Reflects amounts related to our investment in Lower.
(2)Reflects amounts related to our investment in Apex.
Year Ended December 31,
2021(1)
2020(2)
2019
Total revenues
$127,490 $276,968 $149,922 
Net income
768 58,426 22,255 
_____________________
(1)For Lower, reflects amounts subsequent to the date on which we entered into the equity method arrangement.
(2)For the residential mortgage origination joint venture, reflects amounts through the third quarter of 2020, when we exited the arrangement.
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies
 1 Months Ended
Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Guarantees, Concentrations and Contingencies Commitments, Guarantees, Concentrations and Contingencies
Leases
We primarily lease our office premises under multi-year, non-cancelable operating leases. Our operating leases have terms expiring from 2022 through 2040, exclusive of renewal option periods. Our office leases contain renewal option periods ranging from one to ten years from the expiration dates. These options were not recognized as part of our ROU assets and operating lease liabilities, as we did not conclude at the commencement date of the leases that we were reasonably certain to exercise these options. However, in our normal course of business, we expect our office leases to be renewed, amended or replaced by other leases. Our finance leases expire in 2040.
Our operating and finance leases as of December 31, 2021 and 2020 include leases from our September 2019 agreements associated with being the named sponsor of the LA Stadium and Entertainment District at Hollywood Park in Inglewood, California (“SoFi Stadium”), which includes the stadium itself, a performance venue and a future shopping district. Operating leases that commenced in September 2020 included our rights to use two multi-purpose stadium suites, for which we elected the practical expedient to not bifurcate the lease component from the non-lease components, and our rights to certain event space within the stadium and performance venue on a rent-free basis, for which we applied the short-term lease exemption practical expedient. Finance leases that commenced in September 2020 included our rights to certain physical signage within the stadium. The agreement associated with the shopping district did not commence as of December 31, 2021 and is currently expected to commence during 2022. We do not expect the agreement to contain a material lease component, although the evaluation remains ongoing. We bifurcated lease components from non-lease components of certain of the arrangements, the latter of which represent sponsorship and advertising opportunities rather than the rights to physical assets that we control. We began recognizing the non-lease components in the third quarter of 2020 within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss).
The components of lease expense and supplemental cash flow and non-cash information related to our leases for the years ended December 31, 2021, 2020 and 2019 were as follows. For our office leases, we net sublease income against other lease costs shown in the below table. Furthermore, cash flow information is presented net of sublease income.
Year Ended December 31,
202120202019
Operating lease cost
$20,188 $17,371 $16,380 
Finance lease cost – amortization of ROU assets
2,157 719 — 
Finance lease cost – interest expense on lease liabilities
485 167 — 
Short-term lease cost
1,335 463 323 
Variable lease cost(1)
3,979 2,382 880 
Sublease income(2)
(717)(820)(512)
Total lease cost
$27,427 $20,282 $17,071 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases
$19,811 $17,444 $12,446 
Operating cash outflows from finance leases
488 85 — 
Financing cash outflows from finance leases
516 489 — 
Supplemental non-cash information
Non-cash operating lease ROU assets obtained in exchange for new lease liabilities(3)
$12,774 $26,417 $24,715 
Non-cash increase (decrease) in operating lease ROU assets due to lease modifications(40)79 (5,407)
Non-cash finance lease ROU assets obtained in exchange for new finance lease liabilities(4)
— 15,100 — 
_____________________
(1)Variable lease cost includes non-lease components classified as lease costs, such as common area maintenance fees, property taxes and utilities, that vary in amount for reasons other than the passage of time. We elected the practical expedient to not bifurcate the lease component from the non-lease components.
(2)We entered into a sublease arrangement in July 2019, through which we earn sublease income, which offsets our lease cost related to the underlying premises. During the year ended December 31, 2020, we offered the sublessee a partial rent abatement as a result of the COVID-19 pandemic. The sublease arrangement terminated in August 2021.
(3)For the year ended December 31, 2020, includes $5,640 of operating lease ROU assets obtained through acquisitions.
(4)We did not have any finance leases prior to 2020.
Supplemental balance sheet information related to our leases was as follows as of the dates presented:
December 31,
20212020
Operating Leases
ROU assets
$115,191 $116,858 
Operating lease liabilities
$138,794 $139,796 
Weighted average remaining lease term (in years)
8.69.5
Weighted average discount rate
4.5 %4.7 %
Finance Leases
ROU assets(1)
$12,224 $14,381 
Lease liabilities(2)
$14,174 $14,693 
Weighted average remaining lease term (in years)
18.319.2
Weighted average discount rate
3.4 %3.4 %
_____________________
(1)Finance lease ROU assets were presented within property, equipment and software in the consolidated balance sheets.
(2)Finance lease liabilities were presented within accounts payable, accruals and other liabilities in the consolidated balance sheets.
For the periods presented, maturities of lease liabilities as of the date indicated and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows:
Operating Leases
Finance Leases
As of December 31, 2021
2022$22,287 $959 
202322,537 964 
202421,749 968 
202520,494 1,038 
202619,380 1,060 
Thereafter
60,948 14,053 
Total
167,395 19,042 
Less: imputed interest
(28,601)(4,868)
Lease liabilities
$138,794 $14,174 
Lease Concession
The lessor for one of our operating leases allowed us to defer payments on the lease beginning in April 2020 as a result of our inability to use the leased premises during the COVID-19 pandemic. We elected to not account for this concession as a lease modification, as the concession did not result in a substantial change to the enforceable rights and obligations of the parties under the lease contract. During the concession period, we did not recognize operating lease cost and we did not remeasure the right-of-use asset or lease liability. We regained access to the leased premises in September 2021 and resumed lease amortization at that time, which represents the straight-line recognition of the remaining total operating lease cost over an extended lease term. In the absence of this concession, we would have recognized additional operating lease cost of $1,509 and $1,698 during the years ended December 31, 2021 and 2020, respectively.
Other Commitments
In September 2019, we entered into a 20-year partnership with LA Stadium and Entertainment District at Hollywood Park in Inglewood, California that granted us the exclusive naming rights to SoFi Stadium and official partnerships with the Los Angeles Chargers and Los Angeles Rams, as well as rights with the performance venue and surrounding entertainment district (“Naming and Sponsorship Agreement”). Contractual payments under the Naming and Sponsorship Agreement total $625.0 million, which began in 2020 and end in 2040 and include operating lease obligations, finance lease obligations and sponsorship and advertising opportunities at the complex.
In October 2021, we entered into a four-year arrangement for cloud computing services with a total commitment of $80 million to be incurred through the term. During the year ended December 31, 2021, we incurred costs associated with this arrangement of $3.6 million, which is recorded within noninterest expense—technology and product development in the consolidated statements of operations and comprehensive income (loss).
Amounts payable in future periods are as follows:
As of December 31, 2021
2022$45,015 
202345,121 
202445,230 
202545,773 
202630,526 
Thereafter448,515 
Total$660,180 
We made payments totaling $22,017 during the year ended December 31, 2021. See “Contingencies — SoFi Stadium” below for discussion of an associated contingent matter, which could result in an additional payment related to the initial contract year and which are excluded from the table above. We made payments totaling $6,533 during the year ended December 31, 2020.
We also have commitments to fund home loans and student loans that are only cancellable at the option of the borrower. The commitments are measured at fair value on a recurring basis. See Note 9 for additional information.
Concentrations
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash and restricted cash equivalents, residual investments and loans. We hold cash and cash equivalents and restricted cash and restricted cash equivalents in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe these institutions are of high credit quality and have not experienced any related losses to date.
We are dependent on third-party funding sources to originate loans. Additionally, we sell loans to various third parties. During the years ended December 31, 2021 and 2020, the two largest third-party buyers accounted for a combined 42% and 49%, respectively, of our loan sales volume. During the year ended December 31, 2019, approximately 10% of our loan sales volume was concentrated in the largest third-party buyer. No individual third-party buyer accounted for 10% or more of consolidated total net revenues for any of the periods presented.
The Company is exposed to default risk on borrower loans originated and financed by us. There is no single borrower or group of borrowers that comprise a significant concentration of the Company’s loan portfolio. Likewise, the Company is not overly concentrated within a group of channel partners or other customers, with the exception of our distribution of personal loan residual interests in our sponsored personal loan securitizations, which we market to third parties, and the aforementioned whole loan buyers. Given we have a limited number of prospective buyers for our personal loan securitization residual interests, this might result in us utilizing a significant amount of our own capital to fund future residual interests in personal loan securitizations, or impact the execution of future securitizations if we are limited in our own ability to invest in the residual interest portion of future securitizations, or find willing buyers for securitization residual interests.
See Note 18 for a discussion of concentrations in revenues from contracts with customers.
Contingencies
Legal Proceedings
In limited instances, the Company may be subject to a variety of claims and lawsuits in the ordinary course of business. Regardless of the final outcome, defending lawsuits, claims, government investigations, and proceedings in which we are involved is costly and can impose a significant burden on management and employees, and there can be no assurances that we will receive favorable final outcomes.
Galileo. Galileo was a defendant in a putative class action filed in the United States District Court for the Northern District of California in October 2019, captioned as Richards, et. al v. Chime Financial, Inc., Galileo Financial Technologies and The Bancorp, Inc., Civil Action No. 4:19-cv-6864-HSG (N.D. Cal.). Plaintiff asserted various claims against the defendants arising from an intermittent disruption in service experienced by certain holders of Chime Financial, Inc. (“Chime”) deposit accounts preventing them from accessing or using account funds for portions of time between October 16, 2019 and October 19, 2019. The parties entered into a class action settlement agreement to resolve the claims in the action, which the district finally approved by order dated May 24, 2021. In June 2021, a pro se putative class member filed an appeal from that final order approving the settlement agreement, and the appeal was dismissed for lack of prosecution by order of the United States Court of Appeals for the Ninth Circuit on September 1, 2021. The agreed-upon class has now been implemented and finalized, and we derecognized our associated liability and insurance recovery asset.
SoFi Stadium. In September 2019, we established a 20-year partnership with LA Stadium and Entertainment District at Hollywood Park in Inglewood, California (“StadCo”), through a naming and sponsorship agreement, which, among other things, provides SoFi with exclusive naming rights of SoFi Stadium and an official partnership with the Los Angeles Chargers and Los Angeles Rams and with the performance venue, which shares a roof with the stadium, and the surrounding planned
entertainment district, which is anticipated to include office space, retail space and hotel and dining options. In September 2020, we discussed certain provisions of the naming and sponsorship agreement with StadCo in light of the COVID-19 pandemic. Based on these discussions, SoFi paid sponsorship fees for the initial contract year (July 1, 2020 to March 31, 2021) of $9.8 million, of which $6.5 million was paid during 2020 and $3.3 million was paid in January 2021.
The parties are revisiting the sponsorship fees to determine the ultimate amount payable for the initial contract year and have agreed to seek to engage a third party with expertise in the valuation of sports media rights and sports sponsorship or promotional rights (“Valuation Expert”) to perform an evaluation of the delivered value during the initial contract year. The evaluation has not begun as of the date of this Annual Report on Form 10-K. Therefore, the Company is exposed to additional potential sales and marketing expense of up to $12.7 million, which reflects the difference between the actual sponsorship fees paid during the initial contract year and the commitment for the initial contract year made under the Naming and Sponsorship Agreement. As of December 31, 2021, we are unable to estimate the amount of reasonably possible additional costs we may incur with respect to this contingency. Moreover, we have not determined that the likelihood of additional cost is probable. Therefore, as of December 31, 2021, we have not recorded additional expense related to this contingency.
Juarez et al v. SoFi Lending Corp. SoFi Lending Corp. and SoFi (collectively, the “SoFi Defendants”) are defendants in a putative class action, captioned as Juarez v. Social Finance, Inc. et al., Civil Action No. 4:20-cv-03386-HSG (N.D. Cal.), filed against them in the United States District Court for the Northern District of California in May 2020. Plaintiffs, who are conditional permanent residents or Deferred Access for Childhood Arrival (“DACA”) holders, allege that the SoFi Defendants engaged in unlawful lending discrimination in violation of 42 U.S.C. § 1981 and California Civil Code, § 51, et seq., through policies and practices by making such categories of applicants ineligible for loans or eligible only with a co-signer who is a United States citizen or lawful permanent resident. Plaintiffs further allege that the SoFi Defendants violated the Fair Credit Reporting Act, by accessing the credit reports of non-United States citizen loan applicants who hold green cards with a validity period of less than two years without a permissible purpose. As relief, Plaintiffs seek, on behalf of themselves and a purported class of similarly-situated non-United States citizen loan applicants, a declaratory judgment that the challenged policies and practices violate federal and state law, an injunction against future violations, actual and statutory damages, exemplary and punitive damages, and attorneys’ fees. The SoFi Defendants filed a motion to, among other things, dismiss Plaintiffs’ claims for failure to state a claim, and/or compel arbitration. By order dated April 12, 2021, the court dismissed Plaintiffs’ California Civil Code, § 51 claim without prejudice, and denied the SoFi Defendants’ motion to dismiss the remaining counts. Plaintiffs filed an amended complaint with two additional named plaintiffs, including claims under the Unruh Act. The SoFi Defendants filed a motion to compel arbitration as to one of the new plaintiffs, which was granted in part and denied in part on August 24, 2021. On November 1, 2021, the parties agreed to a stay of discovery while they pursued settlement negotiations. On January 27, 2022, the parties advised the court that they had reached agreement on nearly all material terms of the settlement, were in the process of documenting the settlement and accompanying class action settlement notice and claim form, and that plaintiffs expected to file a motion for preliminary approval of the settlement on or before March 28, 2022. The proposed class settlement, which contemplates an aggregate payment by the SoFi Defendants in an immaterial amount, remains subject to court review and approval.
In re Renren Inc. Derivative Litigation. On March 22, 2021, Social Finance was named as a newly added defendant in an Amended and Supplemental Consolidated Stockholder Derivative Complaint (the “Amended Complaint”) filed in an ongoing action pending in the Supreme Court of New York, captioned In re Renren, Inc. Derivative Litigation, Index No. 653564/2018. The plaintiffs, Hen Ren Silk Road Investments LLC, Oasis Investments II Master Fund Ltd., and Jodi Arama, allege that the Chairman and Chief Executive Officer of Renren, Inc. (“Renren”), Joseph Chen, and others, breached their fiduciary duties to Renren’s shareholders in connection with a transaction in which Renren spun off its holdings of Social Finance shares (as well as stock in other entities) to Oak Pacific Investments (“OPI”), an entity allegedly controlled by Mr. Chen. The Amended Complaint contains only one count against Social Finance. Specifically, the plaintiffs claim that Social Finance’s receipt of approximately 17 million of its own securities from OPI pursuant to a call option transfer during the pendency of the lawsuit constituted a fraudulent conveyance pursuant to D.C.L. Section 276 (as in effect in March 2019) that should be voided and set aside pursuant to D.C.L. Sections 278 and 279 (as effective in 2019), as well as unspecified compensatory damages. The Amended Complaint seeks, among other things, an order to impose a constructive trust over the SoFi shares transferred from Renren or the proceeds thereof, voiding and setting aside the call option transfer of approximately 17 million Social Finance shares as a fraudulent conveyance, and requiring Social Finance to pay over the value of the call option transfer. On October 7, 2021, the parties agreed to a stipulation of settlement under which the claims against Social Finance will be dismissed with prejudice with no payment by Social Finance. By order dated December 10, 2021, the Court denied the plaintiffs’ motion for approval of the settlement agreement, ruling that investors who purchased shares in Renren
after April 29, 2018, the date the spin transaction was announced (the “Record Date”) or who increased their positions in Renren during the pendency of the lawsuit, were not entitled to any recovery. The plaintiffs filed a notice of appeal of this decision on December 15, 2021. On December 29, 2021, the Court issued a further order giving defendants leave to file an order to show cause seeking dismissal as it relates to plaintiffs who purchased shares after the Record Date or who increased their position during the pendency of the lawsuit (the “New Plaintiffs”), on or before January 14, 2022. The defendants have moved to dismiss the complaint as against the New Plaintiffs and the Court has now adjourned all dates on the calendar for at least 45 days for the parties to attempt to come up with a resolution as to the claims of the New Plaintiffs. We do not expect these orders ultimately to affect the plaintiffs’ agreement to dismiss the claims against Social Finance with prejudice.
The shares reported herein are consistent with the Amended Complaint and are not adjusted for the effect of the Business Combination.
Guarantees
We have three types of repurchase obligations that we account for as financial guarantees pursuant to ASC 460. First, we issue financial guarantees to FNMA on loans that we sell to FNMA, which manifest as repurchase requirements if it is later discovered that loans sold to FNMA do not meet FNMA guidelines. We have a three-year repurchase obligation from the time of origination to buy back originated loans that do not meet FNMA guidelines, and we are required to pay the full initial purchase price back to FNMA. We recognize a liability for the full amount of expected loan repurchases, which we estimate based on historical experience. The liability we record is equal to what we expect to buy back and, therefore, approximates fair value. Second, we make standard representations and warranties related to other loan transfers, breaches of which would require us to repurchase the transferred loans. Finally, we have limited repurchase obligations for certain loan transfers associated with credit-related events, such as early prepayment or events of default within 90 days after origination. Estimated losses associated with credit-related repurchases are evaluated pursuant to ASC 326. In the event of a repurchase, we are typically required to pay the purchase price of the loans transferred.
As of December 31, 2021 and 2020, the Company accrued liabilities within accounts payable, accruals and other liabilities in the consolidated balance sheets of $7,441 and $5,196, respectively, related to our estimated repurchase obligation, with the corresponding charges recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). As of December 31, 2021 and 2020, the amount associated with loans sold that were subject to the terms and conditions of our repurchase obligations totaled $6.5 billion and $3.9 billion, respectively.
As of December 31, 2021 and 2020, the Company had a total of $9.1 million and $9.3 million, respectively, in letters of credit outstanding with financial institutions. These outstanding letters of credit were issued for the purpose of securing certain of the Company’s operating lease obligations. A portion of the letters of credit was collateralized by $3.1 million and $3.3 million of the Company’s cash as of December 31, 2021 and 2020, respectively, which is included within restricted cash and restricted cash equivalents in the consolidated balance sheets.
Mortgage Banking Regulatory Mandates
The Company is subject to certain state-imposed minimum net worth requirements for the states in which the Company is engaged in the business of a residential mortgage lender. Noncompliance with these requirements on an annual basis could result in potential fines or penalties imposed by the applicable state. Future events or changes in mandates may affect the Company’s ability to meet mortgage banking regulatory requirements. As of December 31, 2021 and 2020, the Company was in compliance with all minimum net worth requirements and, therefore, has not accrued any liabilities related to fines or penalties.
Retirement Plans
The Company has a 401(k) plan that covers all employees meeting certain eligibility requirements. The 401(k) plan is designed to provide tax-deferred retirement benefits in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may defer up to 100% of eligible compensation up to the annual maximum as determined by the Internal Revenue Service. The Company’s contributions to the plan are discretionary. The Company has not made any contributions to the plan to date.
v3.22.0.1
Loss Per Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Loss Per Share Loss Per Share
We compute loss per share attributable to common stock using the two-class method required for participating interests. Prior to the Business Combination, our participating interests included all series of our preferred stock. Series 1 preferred stock has preferential cumulative dividend rights. Pursuant to ASC 260, Earnings Per Share, for each period presented, we increased net loss by the contractual amount of dividends payable to Series 1 preferred stock before allocating any remaining undistributed earnings to all participating interests.
Prior to the Business Combination, all other classes of preferred stock, except for Series C, had stated dividend rights, which had priority over undistributed earnings. The remaining losses were shared pro-rata among the preferred stock (with the exception of Series 1 preferred stock) and common stock outstanding during the measurement period, as if all of the losses for the period had been distributed. While our calculation of loss per share accounted for a loss allocation to all participating shares, we only presented loss per share below for our common stock. Basic loss per share of common stock was computed by dividing net loss, adjusted for the impact of Series 1 preferred stock dividends and loss allocated to other participating interests, as applicable, by the weighted average number of shares of common stock outstanding during the period. Because the amount available to distribute to all participating interests after adjusting for redeemable preferred stock dividends was negative in all periods presented, we did not allocate any loss to participating interests in determining the numerator of the basic and diluted loss per share computation, as the allocation of loss would have been anti-dilutive. Further, we excluded the effect of all potentially dilutive common stock elements from the denominator in the computation of diluted loss per share, as their inclusion would have been anti-dilutive.
The calculation of basic and diluted loss per share was as follows for the years indicated:
Year Ended December 31,
202120202019
Numerator:
Net loss $(483,937)$(224,053)$(239,697)
Less: Redeemable preferred stock dividends
(40,426)(40,536)(23,923)
Less: preferred stock redemptions, net(1)
— (52,658)— 
Net loss attributable to common stockholders – basic
$(524,363)$(317,247)$(263,620)
Denominator:
Weighted average common stock outstanding – basic526,730,261 73,851,108 65,619,361 
Weighted average common stock outstanding – diluted526,730,261 73,851,108 65,619,361 
Loss per share – basic$(1.00)$(4.30)$(4.02)
Loss per share – diluted$(1.00)$(4.30)$(4.02)
___________________
(1)In December 2020, we exercised a call and redeemed certain redeemable preferred stock, as further discussed in Note 15. We considered the premium paid on redemption of $52,658 to be akin to a dividend to the redeemable preferred stockholder. As such, the premium, which represented the amount paid upon redemption over the carrying value of the preferred stock (such carrying value being reduced for preferred stock issuance costs), was deducted from net loss to determine the loss available to common stockholders.
We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of each respective year.
Year Ended December 31,
202120202019
Common stock options
21,171,147 29,947,975 30,743,931 
Common stock warrants12,170,990 — — 
Unvested RSUs
48,687,524 44,601,586 25,293,061 
Unvested PSUs22,970,396 — — 
Convertible Notes(1)
53,538,000 — — 
Redeemable preferred stock exchangeable for common stock— 465,916,522 400,936,765 
Redeemable preferred stock warrants exchangeable for common stock— 12,170,990 12,170,990 
Contingent common stock(2)
— 320,649 — 
____________________
(1)For the year ended December 31, 2021, represented the number of common stock issuable upon conversion of all Convertible Notes at the conversion rate in effect at the balance sheet date, in accordance with ASU 2020-06. See Note 1 and Note 10 for additional information.
(2)For the year ended December 31, 2020, included contingently issuable common stock in connection with our acquisition of 8 Limited, which was subsequently issued in 2021. See Note 2 for additional information.
v3.22.0.1
Business Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
Each of our reportable segments is a strategic business unit that serves specific needs of our members based on the products and services provided. The segments are based on the manner in which management views the financial performance of the business. Contribution profit (loss) is the primary measure of segment profit and loss reviewed by the Chief Operating Decision Maker (“CODM”) and is intended to measure the direct profitability of each segment. Contribution profit (loss) is defined as total net revenue for each reportable segment less:
•fair value changes in servicing rights and residual interests classified as debt that are attributable to assumption changes, which impact the contribution profit within the Lending segment. These fair value changes are non-cash in nature and are not realized in the period; therefore, they do not impact the amounts available to fund our operations; and
•expenses directly attributable to the corresponding reportable segment. Directly attributable expenses primarily include compensation and benefits and sales and marketing, and vary based on the amount of activity within each segment. Directly attributable expenses also include loan origination and servicing expenses, professional services, product fulfillment, lead generation and occupancy-related costs. Expenses are attributed to the reportable segments using either direct costs of the segment or labor costs that can be attributed based upon the allocation of employee time for individual products.
The reportable segments also reflect the Company’s organizational structure. Each segment has a segment manager who reports directly to the CODM. The CODM has ultimate authority and responsibility over resource allocation decisions and performance assessment.
The Company has three reportable segments: Lending, Technology Platform and Financial Services. The Lending segment includes our personal loan, student loan and home loan products and the related servicing activities and, when applicable, commercial loans. We originate loans in each of the aforementioned channels with the objective of either selling whole loans or securitizing a pool of originated loans for transfer to third-party purchasers. Revenues in the Lending segment are driven by changes in the fair value of our whole loans and securitization interests, gains or losses recognized on transfers that meet the true sale requirements under ASC 860, Transfers and Servicing, and our servicing-related activities, which mainly consist of servicing fees and the changes in our servicing assets over time. We also earn the difference between interest income earned on our loans and interest expense on any loans that are financed. Interest expense primarily impacts our Lending segment, and we present interest income net of interest expense, as our CODM considers net interest income in addition to contribution profit in evaluating the performance of the Lending segment and making resource allocation decisions. Finally,
beginning in the third quarter of 2021, our Lending segment revenue also includes earnings or losses from an equity method investment, which is further discussed in Note 1.
The Technology Platform segment includes our technology platform fees, which commenced with our acquisition of Galileo in May 2020, and, in the 2020 periods, our equity method investment in Apex, which represented our portion of net earnings on clearing brokerage activity on the Apex platform. Apex was the Company’s only material equity method investment as of December 31, 2020. During January 2021, the seller of our Apex interest exercised the Seller Call Option, and as such we do not recognize Apex equity investment income subsequent to the call date. Due to the additional investment we made during 2020, we will maintain an immaterial investment in Apex, but will no longer qualify for equity method accounting. See Note 2 for additional information on the acquisition of Galileo, and Note 1 for additional information on our Apex equity method investment.
The Financial Services segment includes our SoFi Money product, SoFi Invest product, SoFi Credit Card product (which we launched in the third quarter of 2020), SoFi Relay personal finance management product and other financial services, such as equity capital markets and advisory services, lead generation, and content for other financial services institutions and our members. SoFi Money provides members a digital cash management experience, interest income and the ability to separate money balances into various subcategories. SoFi Invest provides investment features and financial planning services that we offer to our members. Revenues in the Financial Services segment include payment network fees on our member transactions and pay for order flow, digital assets transaction fees and share lending arrangements in SoFi Invest. Additionally, we earn fees associated with equity capital markets services we began providing in the second quarter of 2021 and further expanded in the fourth quarter of 2021. We also earn referral fees in connection with referral activity we facilitate through our platform. The referral fee is paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. Beginning in the third quarter of 2021, referral fees also include referral fulfillment fees earned for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator.
Non-segment operations are classified as Other, which includes net revenues associated with corporate functions that are not directly related to a reportable segment. These non-segment net revenues include interest income earned on corporate cash balances, nonrecurring income on certain investments from available cash on hand, such as our investments in AFS debt securities (which investments are not interconnected with our core business lines and, thereby, reportable segments), and interest expense on corporate borrowings, such as our revolving credit facility, the seller note issued in connection with our acquisition of Galileo, and the amortization of debt issuance costs and original issue discount on our Convertible Notes. During the year ended December 31, 2021, net revenues within Other also included $211 of interest income and $169 of reversal of loss on discount to fair value in connection with related party transactions. During the years ended December 31, 2020 and 2019, net revenues within Other included $3,189 and $3,338, respectively, of interest income earned in connection with related party transactions. Refer to Note 15 for further discussion of our related party transactions.
The accounting policies of the segments are consistent with those described in Note 1, except for the accounting policies in relation to the allocations of consolidated income and consolidated expenses, as described below.
The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment for the years indicated. The information is derived from our internal financial reporting used for corporate management purposes. Assets are not allocated to reportable segments, as the Company’s CODM does not evaluate reportable segments using discrete asset information.
Year Ended December 31, 2021
Lending(1)
Technology
Platform(2)(3)(4)
Financial Services(4)
Reportable Segments Total
Other(4)
Total
Net revenue
Net interest income (loss)$258,102 $(29)$3,765 $261,838 $(9,594)$252,244 
Noninterest income480,221 194,915 54,313 729,449 3,179 732,628 
Total net revenue (loss)
$738,323 $194,886 $58,078 $991,287 $(6,415)$984,872 
Servicing rights – change in valuation inputs or assumptions(5)
2,651 — — 2,651 
Residual interests classified as debt – change in valuation inputs or assumptions(6)
22,802 — — 22,802 
Directly attributable expenses(364,169)(130,439)(192,996)(687,604)
Contribution profit (loss)
$399,607 $64,447 $(134,918)$329,136 
Year Ended December 31, 2020Lending
Technology
Platform(2)(4)
Financial Services(4)
Reportable Segments Total
Other(4)
Total
Net revenue
Net interest income (loss)$199,345 $(107)$484 $199,722 $(21,791)$177,931 
Noninterest income (loss)281,521 96,423 11,386 389,330 (1,729)387,601 
Total net revenue (loss)
$480,866 $96,316 $11,870 $589,052 $(23,520)$565,532 
Servicing rights – change in valuation inputs or assumptions(5)
17,459 — — 17,459 
Residual interests classified as debt – change in valuation inputs or assumptions(6)
38,216 — — 38,216 
Directly attributable expenses(294,812)(42,427)(143,966)(481,205)
Contribution profit (loss)
$241,729 $53,889 $(132,096)$163,522 
Year Ended December 31, 2019Lending
Technology
Platform(2)
Financial ServicesReportable Segments TotalOtherTotal
Net revenue
Net interest income$325,589 $— $614 $326,203 $3,631 $329,834 
Noninterest income108,712 795 3,318 112,825 — 112,825 
Total net revenue
$434,301 $795 $3,932 $439,028 $3,631 $442,659 
Servicing rights – change in valuation inputs or assumptions(5)
(8,487)— — (8,487)
Residual interests classified as debt – change in valuation inputs or assumptions(6)
17,157 — — 17,157 
Directly attributable expenses(350,511)— (122,732)(473,243)
Contribution profit (loss) $92,460 $795 $(118,800)$(25,545)
_____________________
(1)Noninterest income within the Lending segment for the year ended December 31, 2021 included $261 of losses from our equity method investment in Lower. See Note 1 under “Equity Method Investments” for additional information.
(2)Noninterest income within the Technology Platform segment for the year ended December 31, 2020 included $4,442 of earnings from our equity method investment in Apex, net of an impairment charge in the fourth quarter of 2020. Noninterest income within this segment consisted entirely of earnings from our equity method investment in Apex during the year ended December 31, 2019. Therefore, there were no directly attributable expenses to this reportable segment in that period. See Note 1 under “Equity Method Investments” for additional information.
(3)During the year ended December 31, 2021, the five largest clients in the Technology Platform segment contributed 63% of the total net revenue within the segment, which represented 13% of our consolidated total net revenue.
(4)During the year ended December 31, 2021, total net revenue for the Technology Platform segment included $1,863 of intercompany technology platform fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment directly attributable expenses representing the intercompany technology platform fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within “Other” and the expense is adjusted in our reconciliation of directly attributable expenses below. We recast the year ended December 31, 2020 to conform to the current year presentation, which resulted in the following: (i) an increase to the Technology Platform segment total net revenue and contribution profit of $686, (ii) a corresponding decrease to “Other” total net revenue for the elimination, (iii) a corresponding increase to Financial Services directly attributable expenses, and (iv) a corresponding adjustment in the reconciliation of directly attributable expenses.
(5)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change, which is recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss) is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.
(6)Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.
The following table reconciles reportable segments total contribution profit (loss) to loss before income taxes for the years presented. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.
Year Ended December 31,
202120202019
Reportable segments total contribution profit (loss)$329,136 $163,522 $(25,545)
Other total net revenue (loss)(6,415)(23,520)3,631 
Intercompany technology platform expenses1,863 686 — 
Servicing rights – change in valuation inputs or assumptions(2,651)(17,459)8,487 
Residual interests classified as debt – change in valuation inputs or assumptions(22,802)(38,216)(17,157)
Expenses not allocated to segments:
Share-based compensation expense(239,011)(99,870)(60,936)
Depreciation and amortization expense(101,568)(69,832)(15,955)
Fair value change of warrant liabilities(107,328)(20,525)2,834 
Employee-related costs(1)
(143,847)(114,599)(53,080)
Special payment(2)
(21,181)— — 
Other corporate and unallocated expenses(3)
(167,373)(108,708)(81,878)
Loss before income taxes$(481,177)$(328,521)$(239,599)
_____________________
(1)Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.
(2)Represents a special payment to the Series 1 preferred stockholders in connection with the Business Combination. See Note 11 for additional information.
(3)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing costs, tools and subscription costs, professional services costs and corporate insurance expense, as well as equity-based payments to non-employees.
As we did not have material operations outside of the United States, we did not make the geographic disclosures pursuant to ASC 280, Segment Reporting. No single customer accounted for more than 10% of our consolidated revenues for any of the periods presented.
v3.22.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events Management of the Company performed an evaluation of subsequent events that occurred after the balance sheet date through the date of this Annual Report on Form 10-K.
On January 18, 2022, we received approval from the Federal Reserve of our application to become a bank holding company, and we received conditional approval from the OCC to complete the Bank Merger. On February 2, 2022, we closed the Bank Merger by acquiring all of the outstanding equity interests in Golden Pacific and began operating Golden Pacific Bank as SoFi Bank. The Bank Merger is accounted for as a business combination. See Note 2 for additional information on the regulatory approvals and the Bank Merger.
On February 19, 2022, we entered into the Technisys Merger to acquire all of the outstanding equity interests in Technisys. The Technisys Merger will be accounted for as a business combination. See Note 2 for additional information on the Technisys Merger.
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Policies)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).
As a result of the Business Combination completed on May 28, 2021, prior period share and per share amounts presented in the accompanying consolidated financial statements and these related notes have been retroactively converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. See Note 2 for additional information.
Use of Judgments, Assumptions and Estimates The preparation of our consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions.
Business Combinations We account for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with the principles outlined in ASC 820, Fair Value Measurement (“ASC 820”). The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in our results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred.
During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the consolidated statements of operations and comprehensive income (loss).
The Business Combination with SCH during the year ended December 31, 2021 was accounted for as a reverse recapitalization. See Note 2 for additional information.
Consolidation of Variable Interest Entities
We enter into arrangements in which we originate loans, establish a special purpose entity (“SPE”), and transfer loans to the SPE. We retain the servicing rights of those loans and hold additional interests in the SPE. We evaluate each such arrangement to determine whether we have a variable interest. If we determine that we have a variable interest in an SPE, we then determine whether the SPE is a VIE. If the SPE is a VIE, we assess whether we are the primary beneficiary of the VIE, such that we must consolidate the VIE on our consolidated balance sheets. To determine if we are the primary beneficiary, we identify the most significant activities and determine who has the power over those activities, and who absorbs the variability in the economics of the VIE. As of December 31, 2021 and 2020, we had 13 and 15 consolidated VIEs, respectively, on our consolidated balance sheets. Refer to Note 6 for more details regarding our consolidated VIEs.
We periodically reassess our involvement with each VIE in which we have a variable interest. We monitor matters related to our ability to control economic performance, such as management of the SPE and its underlying loans, contractual changes in the services provided, the extent of our ownership, and the rights of third parties to terminate us as the VIE servicer. In addition, we monitor the financial performance of each VIE for indications that we may or may not have the right to absorb benefits or the obligation to absorb losses associated with variability in the financial performance of the VIE that could potentially be significant to that VIE, which we define as a variable interest of greater than 10%.
A significant change to the pertinent rights of us or other parties, or a significant change to the ranges of possible financial performance outcomes used in our assessment of the variability of cash flows due to us, could impact the determination of whether or not a VIE should be consolidated in future periods. VIE consolidation and deconsolidation may lead to increased volatility in our financial results and impact period-over-period comparability. Our maximum exposure to loss as a result of our involvement with consolidated VIEs is limited to our investment, which is eliminated in consolidation. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in consolidated VIEs.
Fair Value Measurements
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-level fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three levels are defined as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.
•Level 2 — Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or observable inputs other than quoted prices.
•Level 3 — Unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability.
A financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Instruments are categorized in Level 3 of the fair value hierarchy based on the significance of unobservable factors in the overall fair value measurement. As a result, the related gains and losses for assets
and liabilities within the Level 3 category presented in Note 9 may include changes in fair value that are attributable to both observable and unobservable inputs.
Transfers of Financial Assets
The transfer of an entire financial asset is accounted for as a sale if all of the following conditions are met:
•the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership;
•the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and
•the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset.
Loan sales are aggregated in the financial statements due to the similarity of both the loans transferred and servicing arrangements. The portion of our income relating to ongoing servicing and the fair value of our servicing rights are dependent upon the performance of the sold loans. We measure the gain or loss on the sale of financial assets as the net assets received from the sale less the carrying amount of the loans sold. The net assets received from the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including but not limited to cash, servicing assets, retained securitization investments and recourse obligations.
When securitizing loans, we employ a two-step transaction that includes the isolation of the underlying loans in a trust and the sale of beneficial interests in the trust to a bankruptcy-remote entity. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on our consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds received from these transfers are reported as liabilities, with related interest expense recognized over the life of the related secured borrowing.
As a component of the loan sale agreements, we make certain representations to third parties that purchase our previously-held loans, some of which include Federal National Mortgage Association (“FNMA”) repurchase requirements and all of which are standard in nature and do not constrain our ability to recognize a sale for accounting purposes. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans arising from these representations are accrued if probable and estimable. Pursuant to ASC 460, Guarantees (“ASC 460”), we establish a loan repurchase liability, which is based on historical experience and any current developments which would make it probable that we would buy back loans previously sold to third parties at the historical sales price. The loan repurchase liability is presented within accounts payable, accruals and other liabilities in the consolidated balance sheets, with the corresponding charges recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
Cash and Cash Equivalents Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents.
Restricted Cash and Restricted Cash Equivalents Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, funds reserved for committed stock purchases, and collection balances. These accounts are earmarked as restricted because these balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances.
Investments in Debt Securities In the third quarter of 2021, we began investing in debt securities. The accounting and measurement framework for our investments in debt securities is determined based on the security classification. We classify investments in debt securities as
available-for-sale (“AFS”) when we do not have an intent and ability to hold the securities until maturity. We do not hold investments in debt securities for trading purposes. As of December 31, 2021, all of our investments in debt securities were classified as AFS. Hereafter, these investments are referred to as “investments in AFS debt securities”.
We record investments in AFS debt securities at fair value in our consolidated balance sheets, with unrealized gains and losses recorded, net of tax, as a component of accumulated other comprehensive income (loss) (“AOCI”). See Note 9 for additional information on our fair value estimates for investments in AFS debt securities. The amortized cost basis of our investments in AFS debt securities reflects the security’s acquisition cost, adjusted for amortization of premium or accretion of discount, and net of deferred fees and costs, collection of cash and charge-offs, as applicable. For purposes of determining gross realized gains and losses on AFS debt securities, the cost of securities sold is based on specific identification. We elected to present accrued interest for AFS debt securities within investments in available-for-sale securities in the consolidated balance sheets. Purchase discounts, premiums, and other basis adjustments for investments in AFS debt securities are generally amortized into interest income over the contractual life of the security using the effective interest method. However, premiums on certain callable debt securities are amortized to the earliest call date. Amortization of premiums and discounts and other basis adjustments for investments in AFS debt securities, as well as interest income earned on the investments, are recognized within interest income—other, and realized gains and losses on investments in AFS debt securities are recognized within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
As of December 31, 2021, our investments in AFS debt securities portfolio included agency to-be-announced (“TBA”) securities, which are securities that will be delivered under the purchase contract at a later date when the underlying security is issued. We made a policy election to account for contracts to purchase or sell existing securities on a trade-date basis and, as such, we record the purchase at inception of the contract on a gross basis, with the offsetting payable for the settlement amount recorded within accounts payable, accruals and other liabilities in the consolidated balance sheets.
In accordance with ASC 326-30, Financial Instruments—Credit Losses—Available-For-Sale Debt Securities, an investment in AFS debt security is considered impaired if its fair value is less than its amortized cost. If we determine that we have the intent to sell the impaired investment in AFS debt security, or if it is more likely than not that we will be required to sell the impaired investment in AFS debt security before recovery of its amortized cost, we recognize the full impairment loss reflecting the difference between the amortized cost (net of any prior recognized allowance) and the fair value of the investment in AFS debt security within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). If neither of the above conditions exists, we evaluate whether the impairment loss is attributable to credit-related or non-credit-related factors. Any impairment that is not credit-related is recognized in other comprehensive income (loss), net of taxes. See “Allowance for Credit Losses” below for the factors we consider in identifying credit-related impairment and the treatment of credit losses.
See Note 4 for additional information on our investments in AFS debt securities.
Loans
As of December 31, 2021, our loan portfolio consisted of personal loans, student loans and home loans, which are measured at fair value, and credit card loans, which are measured at amortized cost. As of December 31, 2020, we also had a commercial loan, which is further discussed below.
Loans Measured at Fair Value
Our personal loans, student loans and home loans are carried at fair value on a recurring basis and, therefore, all direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We elected the fair value option to measure these loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). Our consolidated loans are originated with the intention to sell to third-party purchasers and are, therefore, considered held for sale. Securitized loans are assets held by consolidated SPEs as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations.
Loans do not trade in an active market with readily observable prices. We determine the fair value of our loans using a discounted cash flow methodology, while also considering market data as it becomes available. We classify loans as Level 3 because the valuations utilize significant unobservable inputs.
We consider a loan to be delinquent when the borrower has not made the scheduled payment amount within one day after the scheduled payment date, provided the borrower is not in school or in deferment, forbearance or within an agreed-upon grace period. Loan deferment is a provision in the student loan contract that permits the borrower to defer payments while enrolled at least half time in school. During the deferment period, interest accrues on the loan balance and is capitalized to the loan when the loan enters repayment status, which begins when the student no longer qualifies for deferment.
Whereas deferment only relates to student loans, forbearance applies to student loans, personal loans and home loans. A borrower in repayment may generally request forbearance for reasons including a FEMA-declared disaster, unemployment, economic hardship or general economic uncertainty. Forbearance typically cannot exceed a total of 12 months over the life of the loan. If forbearance is granted, interest continues to accrue during the forbearance period and is capitalized to the loan when the borrower resumes making payments. At the conclusion of a forbearance period, the contractual monthly payment is recalculated and is generally higher as a result.
For personal loans and student loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. For home loans, delinquent loans are charged off after 180 days of delinquency or on the date of confirmed loss. For all loans, we stop accruing interest and reverse all accrued but unpaid interest on the date of charge-off. Additional information about our loans measured at fair value is included in Note 5 through Note 7, as well as Note 9.
Loans Measured at Amortized Cost
As of December 31, 2021, loans measured at amortized cost included credit card loans. We launched our credit card product in the third quarter of 2020, which was expanded to a broader market in the fourth quarter of 2020. During the fourth quarter of 2020, we also issued a commercial loan, which was repaid in January 2021. For loans measured at amortized cost, we present accrued interest within loans in the consolidated balance sheets.
Allowance for Credit Losses
Effective January 1, 2020, we adopted the provisions of Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, which requires upfront recognition of lifetime expected credit losses using a current expected credit loss model. As of December 31, 2021, the standard was applicable to (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii)  margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card loans, and (vi) investments in AFS debt securities. Our approaches to measuring the allowance for credit losses on the applicable financial assets are as follows:
Cash equivalents and restricted cash equivalents: Our cash equivalents and restricted cash equivalents are short-term in nature and of high credit quality; therefore, we determined that our exposure to credit losses over the life of these instruments was immaterial.
Accounts receivable from contracts with customers: Accounts receivable from contracts with customers as of the balance sheet dates are recorded at their original invoice amounts reduced by any allowance for credit losses. In accordance with the standard, we pool our accounts receivable, all of which are short-term in nature and arise from contracts with customers, based on shared risk characteristics to assess their risk of loss, even when that risk is remote. Certain of our historical accounts receivable balances did not have any write-offs. We use the aging method and historical loss rates as a basis for estimating the percentage of current and delinquent accounts receivable balances that will result in credit losses. We consider whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions warrant an adjustment to our historical loss experience. In applying such adjustments, we primarily evaluate changes in customer creditworthiness, current economic conditions, expectations of near-term economic trends and changes in customer payment terms and collection trends. For the measurement dates presented herein, given our methods of collecting funds, and that we have not observed meaningful changes in our customers’ payment behavior, we determined that our historical loss rates remained most indicative of our lifetime expected losses. We record the provision for credit losses on accounts receivable from
contracts with customers within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
When we determine that a receivable is not collectible, we write off the uncollectible amount as a reduction to both the allowance and the gross asset balance. Recoveries are recorded when received and credited to the provision for credit losses. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for credit losses being recognized in the period in which the change occurs. See Note 8 for a rollforward of the allowance for credit losses related to our accounts receivable.
Margin receivables: Our margin receivables, which are associated with margin lending services we offer to members through 8 Limited, are fully collateralized by the borrowers’ securities under collateral maintenance provisions, to which we regularly monitor adherence. Therefore, using the practical expedient in ASC 326-20-35-6, Financial Instruments — Credit Losses, we did not record expected credit losses on this pool of margin receivables, as the fair value of the underlying collateral is expected to exceed the amortized cost of the receivables.
Loan repurchase reserves: We issue financial guarantees related to certain non-agency loan transfers, which are subject to repurchase based on the occurrence of certain credit-related events within a specified amount of time following loan transfer, which does not exceed 90 days from origination. We estimate the contingent guarantee liability based on our historical repurchase activity for similar types of loans and assess whether adjustments to our historical loss experience are required based on current conditions and forecasts of future conditions, as appropriate, as our exposure under the guarantee is short-term in nature. See Note 16 for additional information on our guarantees.
Credit card loans: Our estimates of the allowance for credit losses as of December 31, 2021 and 2020 were $7,037 and $219, respectively. Accordingly, our estimate of the allowance for credit losses as of December 31, 2020 was immaterial to the consolidated financial statements. During the third quarter of 2021, we began to segment pools of credit card loans based on consumer credit score bands as measured using FICO scores obtained at the origination of the account (“origination FICO”) and also by delinquency status, which may be adjusted using other risk-differentiating attributes to model charge-off probabilities and the average life over which expected credit losses may occur for the credit card loans within each pool. As our historical internal risk tiers were assigned primarily based on origination FICO, our pooling of our historical assets did not materially change, nor would there have been a material impact on our historical provision for credit losses if we had utilized our current credit quality indicators when setting our historical provision. The pools estimate the likelihood of borrowers with similar origination FICO scores to pay credit obligations based on aggregate credit performance data. When necessary, we apply separate credit loss assumptions to assets that have deteriorated in credit quality such that they no longer share similar risk characteristics with other assets in the same FICO score band. We either estimate the allowance for credit losses on such non-performing assets individually based on individual risk characteristics or as part of a distinct pool of assets that shares similar risk characteristics. We reassess our credit card pools periodically to confirm that all loans within each pool continue to share similar risk characteristics.
We establish an allowance for the pooled credit card loans within each pool utilizing the risk model described above, which may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the probability-of-default and loss-given-default assumptions to the drawn balance of credit card loans within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We do not measure credit losses on the undrawn credit exposure, as such undrawn credit exposure is unconditionally cancellable by us. Management further considers an evaluation of overall portfolio credit quality based on indicators such as changes in our credit decisioning process, underwriting and collection management policies; the effects of external factors, such as regulatory requirements; general economic conditions; and inherent uncertainties in applying the methodology. We record the provision for credit losses on credit card loans within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive income (loss).
Credit card loans are reported as delinquent when they become 30 or more days past due. Credit card loans are charged off after 180 days of delinquency or on the date of the confirmed loss, at which time we stop accruing interest and reverse all accrued but unpaid interest through interest income as of such date. When a credit card loan is charged off, we record a reduction to the allowance and the credit card loan balance. When recovery payments are received against charged off credit card loans, we record a direct reduction to the provision for credit losses and resume the accrual of interest. Credit card receivables associated with alleged or potential fraudulent transactions are charged off through noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
There were no credit card loans on nonaccrual status as of December 31, 2021 and 2020. Credit card balances expensed due to alleged or potential fraudulent transactions, net of recoveries, during the year ended December 31, 2021 were $1,292. There were no such credit card loan charge offs during the year ended December 31, 2020. Accrued interest receivables written off during the year ended December 31, 2021 were $133, all of which were accrued during 2021. We did not have any accrued interest receivables written off during the year ended December 31, 2020. See Note 8 for a rollforward of the allowance for credit losses related to our credit card loans.
We elected to exclude interest on credit card loans from the measurement of our allowance, as our policy allows for accrued interest to be reversed in a timely manner. Further, we elected the practical expedient to exclude the accrued interest component of our credit card loans from the quantitative disclosures presented.
Credit Quality Indicators
The primary credit quality indicators that are important to understanding the overall credit performance of our credit card borrowers and their ability to repay are reflected by delinquency status and by credit performance expectations, as segmented by origination FICO bands as of December 31, 2021. The Company monitors these credit quality indicators on an ongoing basis.
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:
Delinquent Loans
Current30–59 Days60–89 Days
≥ 90 Days(1)
Total Delinquent Loans
Total Loans(2)
December 31, 2021
Credit card loans$115,356 1,893 1,683 2,658 6,234 $121,590 
December 31, 2020
Credit card loans$3,864 74 2 — 76 $3,940 
_____________________
(1)As of December 31, 2021, all of the credit card loans that were 90 days or more past due continued to accrue interest.
(2)Presented before allowance for credit losses of $7,037 and $219 as of December 31, 2021 and 2020, respectively, and excludes accrued interest of $1,359 and $2, respectively.
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) as of December 31, 2021 based on origination FICO. Generally, higher origination FICO score bands reflect higher anticipated credit performance than lower origination FICO score bands.
Origination FICODecember 31, 2021
≥ 800$10,016 
780 – 7998,624 
760 – 7799,976 
740 – 75913,581 
720 – 73918,358 
700 – 71922,579 
680 – 69921,736 
660 – 67914,044 
640 – 6591,969 
< 640707 
Total credit card loans$121,590 
Investments in AFS debt securities: An allowance for credit losses on our investments in AFS debt securities is required for any portion of impaired securities that is attributable to credit-related factors. For certain securities that are
guaranteed by the U.S. Treasury or government agencies, or sovereign entities of high credit quality, we concluded that there is no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses. For other investments in AFS debt securities, factors considered in evaluating credit losses include (i) adverse conditions related to the macroeconomic environment or the industry, geographic area or financial condition of the issuer, (ii) other credit indicators of the security, such as external credit ratings, and (iii) payment structure of the security. As of December 31, 2021, we concluded that the credit-related impairment was immaterial. Credit-related impairment is recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding adjustment to noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive income (loss). Such credit losses are limited to the amount of the total impairment. We did not recognize an allowance for credit losses on impaired investments in AFS debt securities as of December 31, 2021.
Servicing Rights, Loan Origination and Sales Activities
Servicing Rights
Each time we enter into a servicing agreement, either in connection with transfers of our financial assets or in connection with a referral fulfillment arrangement we entered into during 2021 in which we are a sub-servicer for financial assets that we do not legally own, we determine whether we should record a servicing asset, servicing liability, or neither a servicing asset nor liability. We elected the fair value option to measure our servicing rights subsequent to initial recognition. We measure the initial and subsequent fair value of our servicing rights using a discounted cash flow methodology, which includes our contractual servicing fee, ancillary income, prepayment rate assumptions, default rate assumptions, a discount rate commensurate with the risk of the servicing asset or liability being valued, and an assumed market cost of servicing, which is based on active quotes from third-party servicers. For servicing rights retained in connection with loan transfers that do not meet the requirements for sale accounting treatment, there is no recognition of a servicing asset or liability.
Servicing rights in connection with transfers of financial assets are initially measured at fair value and recognized as a component of the gain or loss from sales of loans and the initial capitalization is reported within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). Servicing rights assumed from third parties for financial assets for which we are not the loan originator are initially measured at fair value and recognized within noninterest income—servicing in the consolidated statements of operations and comprehensive income (loss). Servicing rights are measured at fair value at each subsequent reporting date and changes in fair value are reported in earnings in the period in which they occur. Subsequent measurement changes for all servicing rights, including servicing fee payments and fair value changes, are included within noninterest income—servicing in the consolidated statements of operations and comprehensive income (loss). We elected the fair value option to measure our servicing rights to better align with the valuation of our transferred loans, which also tend to share a similar risk profile to the personal loan servicing we assume from third parties when we are not the loan originator. The loans are also impacted by similar factors, such as conditional prepayment rates. We consider the risk of the assets and the observability of inputs in determining the classes of servicing rights. We have three classes of servicing assets: personal loans, home loans and student loans. There is prepayment and delinquency risk inherent in our servicing rights, but we currently do not use any instruments to mitigate such risks.
See Note 9 for the key inputs used in the fair value measurements of our classes of servicing rights.
Loan Origination and Sales Activities
We measure our student loans, home loans and personal loans at fair value and, therefore, all direct fees and costs related to the origination process are recognized in earnings as earned or incurred. Direct fees, which primarily relate to home loan originations, and direct loan origination costs are recorded within noninterest income—loan origination and sales and noninterest expense—cost of operations, respectively, in the consolidated statements of operations and comprehensive income (loss).
As part of our loan sale agreements, we may retain the rights to service sold loans. We calculate a gain or loss on the sale based on the sum of the proceeds from the sale and any servicing asset recognized, less the carrying value of the loans sold. Our gain or loss calculation is also inclusive of repurchase liabilities recognized at the time of sale.
For our credit card loans, direct loan origination costs are deferred in other assets on the consolidated balance sheets and amortized on a straight-line basis over the privilege period, which is 12 months, within interest income—loans in the consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2021, we amortized $1,451 of deferred costs into interest income and had a remaining balance of deferred costs of $3,422 within other assets as of December 31, 2021.
Securitization Investments
In Company-sponsored securitization transactions that meet the applicable criteria to be accounted for as a sale, we retain certain residual interests and asset-backed bonds. We measure these investments at fair value on a recurring basis. Gains and losses related to our securitization investments are reported within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). We determine the fair value of our securitization investments using a discounted cash flow methodology, while also considering market data as it becomes available. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us.
Our residual investments accrete interest income over the expected life using the effective yield method pursuant to ASC 325-40, Investments — Other, which reflects a portion of the overall fair value adjustment recorded each period on our residual investments. On a quarterly basis, we reevaluate the cash flow estimates over the life of the residual investments to determine if a change to the accretable yield is required on a prospective basis. Additionally, we record interest income associated with asset-backed bonds over the term of the underlying bond using the effective interest method on unpaid bond
amounts. Interest income on residual investments and asset-backed bonds is presented within interest income—securitizations in the consolidated statements of operations and comprehensive income (loss). See Note 9 for the key inputs used in the fair value measurements of our residual investments and asset-backed bonds.
Equity Method Investments
In August 2021, we finalized the purchase of a 5% interest in Lower Holding Company (“Lower”) for $20,000, upon obtaining certain regulatory approvals. This equity method investment expanded our home loan origination fulfillment capabilities. Upon the closing of the transaction, we were granted a seat on Lower’s board of directors. Based on accounting guidance in ASC 323-10, Investments — Equity Method and Joint Ventures, we concluded that we had significant influence over the investee because of our representation on its board of directors. However, we did not control the investee and, therefore, accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g).
We recorded our portion of Lower equity method earnings within noninterest income—other in the consolidated statements of operations and comprehensive income (loss) and as an increase to the carrying value of our equity method investment in the consolidated balance sheets. We recognized equity method losses of $261 during the year ended December 31, 2021, which included basis difference amortization. The investment in Lower resulted in a basis difference of $1,769 that was attributable to the excess of the fair value of certain assets measured at amortized cost relative to book value, as well as definite-lived intangible assets. The basis difference is being amortized into income as an offset to equity method earnings over the weighted average life of the assets measured at amortized cost by Lower and the useful life of the separately-identified intangible assets. The amortization range is 1.3 to 5.0 years, and the weighted average amortization period is 3.3 years as of December 31, 2021. Our policy for amortizing separately-identified Lower assets was consistent with our policy for amortizing our assets of a similar type, and our basis for amortizing assets held by Lower at amortized cost was consistent with our experience with similar assets. We did not receive any distributions during the year ended December 31, 2021. We did not recognize any impairment related to our Lower investment during the year ended December 31, 2021.
On January 25, 2022, we relinquished our seat on Lower’s board of directors. As such, we no longer have significant influence over the investee and we will cease recognizing Lower equity investment income subsequent to that date.
In December 2018, we purchased a 16.7% interest in Apex Clearing Holdings, LLC (“Apex”) for $100,000, which represented our only significant equity method investment at the time. We recorded our portion of Apex equity method earnings within noninterest income—other in the consolidated statements of operations and comprehensive income (loss) and as an increase to the carrying value of our equity method investment in the consolidated balance sheets. We recognized equity method earnings on our investment in Apex of $4,442 and $795 during the years ended December 31, 2020 and 2019, respectively, which included basis difference amortization. During the year ended December 31, 2020, we invested an additional $145 in Apex, which increased our equity method investment ownership to 16.8% as of that date.
The seller of the Apex interest had call rights over our initial equity interest in Apex (“Seller Call Option”) from April 14, 2020 to December 14, 2023, which rights were exercised in January 2021. Therefore, we ceased recognizing Apex equity investment income subsequent to the call date. As of December 31, 2020, we measured the carrying value of the Apex equity method investment equal to the call payment that we received in January 2021 of $107,534. There was no equity method investment balance as of December 31, 2021. We did not receive any distributions during the years ended December 31, 2020 and 2019.
We also had an equity method investment balance related to a residential mortgage origination joint venture, which was discontinued in the third quarter of 2020, at which point we received a closing distribution of $974 related to the investment and we recognized an immaterial loss on the dissolution date. For the years ended December 31, 2020 and 2019, the earnings related to this joint venture were immaterial.
Property, Equipment and Software All property, equipment and software are initially recorded at cost; repairs and maintenance are expensed as incurred. Computer hardware, furniture and fixtures, software, and finance lease right-of-use (“ROU”) assets are depreciated or amortized on a straight-line basis over the estimated useful life of each class of depreciable or amortizable assets (ranging from
2.5 to 7.0 years). Leasehold improvements are amortized over the shorter of the respective lease term or the estimated lives of the leasehold improvements.
Software includes both purchased and internally-developed software. Internally-developed software is capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Other costs are expensed as incurred.
The table below presents our major classes of depreciable and amortizable assets by function as of the dates indicated:
Gross
Balance		Accumulated Depreciation/AmortizationCarrying
Value
December 31, 2021
Computer hardware$16,864 $(8,583)$8,281 
Leasehold improvements39,726 (12,233)27,493 
Furniture and fixtures(1)
18,326 (7,748)10,578 
Software(2)
75,632 (22,996)52,636 
Finance lease ROU assets(3)
15,100 (2,876)12,224 
Construction in progress(4)
661 — 661 
Total$166,309 $(54,436)$111,873 
December 31, 2020
Computer hardware$13,494 $(6,037)$7,457 
Leasehold improvements36,725 (7,920)28,805 
Furniture and fixtures(1)
12,361 (5,251)7,110 
Software(2)
42,323 (18,587)23,736 
Finance lease ROU assets(3)
15,100 (719)14,381 
Total$120,003 $(38,514)$81,489 
_____________________
(1)Furniture and fixtures primarily include office equipment as well as other furniture and fixtures associated with SoFi Stadium.
(2)Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the year ended December 31, 2021, we capitalized $7,776 of share-based compensation related to internally-developed software, and we recognized associated amortization expense of $792. We did not capitalize any share-based compensation during the years ended December 31, 2020 and 2019.
(3)Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See Note 16 for additional information on our leases.
(4)Construction in progress as of December 31, 2021 relates to furniture and fixtures and computer hardware.

For the years ended December 31, 2021, 2020 and 2019, total depreciation and amortization expense associated with property, equipment and software, inclusive of the amortization of capitalized share-based compensation, was $31,061, $20,097 and $12,947, respectively.
We recognized property, equipment and software abandonment of $2,137 during the year ended December 31, 2019. There were no abandonments during the years ended December 31, 2021 and 2020. There were no impairments during any of the years presented. We had losses on computer hardware disposals of $164 during the year ended December 31, 2021.
Property, Equipment and Software All property, equipment and software are initially recorded at cost; repairs and maintenance are expensed as incurred. Computer hardware, furniture and fixtures, software, and finance lease right-of-use (“ROU”) assets are depreciated or amortized on a straight-line basis over the estimated useful life of each class of depreciable or amortizable assets (ranging from
2.5 to 7.0 years). Leasehold improvements are amortized over the shorter of the respective lease term or the estimated lives of the leasehold improvements.
Software includes both purchased and internally-developed software. Internally-developed software is capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Other costs are expensed as incurred.
The table below presents our major classes of depreciable and amortizable assets by function as of the dates indicated:
Gross
Balance		Accumulated Depreciation/AmortizationCarrying
Value
December 31, 2021
Computer hardware$16,864 $(8,583)$8,281 
Leasehold improvements39,726 (12,233)27,493 
Furniture and fixtures(1)
18,326 (7,748)10,578 
Software(2)
75,632 (22,996)52,636 
Finance lease ROU assets(3)
15,100 (2,876)12,224 
Construction in progress(4)
661 — 661 
Total$166,309 $(54,436)$111,873 
December 31, 2020
Computer hardware$13,494 $(6,037)$7,457 
Leasehold improvements36,725 (7,920)28,805 
Furniture and fixtures(1)
12,361 (5,251)7,110 
Software(2)
42,323 (18,587)23,736 
Finance lease ROU assets(3)
15,100 (719)14,381 
Total$120,003 $(38,514)$81,489 
_____________________
(1)Furniture and fixtures primarily include office equipment as well as other furniture and fixtures associated with SoFi Stadium.
(2)Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the year ended December 31, 2021, we capitalized $7,776 of share-based compensation related to internally-developed software, and we recognized associated amortization expense of $792. We did not capitalize any share-based compensation during the years ended December 31, 2020 and 2019.
(3)Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See Note 16 for additional information on our leases.
(4)Construction in progress as of December 31, 2021 relates to furniture and fixtures and computer hardware.

For the years ended December 31, 2021, 2020 and 2019, total depreciation and amortization expense associated with property, equipment and software, inclusive of the amortization of capitalized share-based compensation, was $31,061, $20,097 and $12,947, respectively.
We recognized property, equipment and software abandonment of $2,137 during the year ended December 31, 2019. There were no abandonments during the years ended December 31, 2021 and 2020. There were no impairments during any of the years presented. We had losses on computer hardware disposals of $164 during the year ended December 31, 2021.
Goodwill and Intangible Assets Goodwill represents the fair value of an acquired business in excess of the fair value of the identified net assets acquired. Goodwill is tested for impairment annually or whenever indicators of impairment exist. We apply the provisions of ASU 2017-04, Simplifying the Test for Goodwill Impairment, to calculate goodwill impairment (if any) on at least an annual basis, which provides for an unconditional option to bypass the qualitative assessment.
Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Therefore, if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. Our annual impairment testing date is October 1.
Intangible assets as of December 31, 2021 included developed technology; customer-related contracts; trade names, trademarks and domain names; core banking infrastructure; and broker-dealer license and trading rights. Definite-lived intangible assets are straight-line amortized over their useful lives and reviewed for impairment annually and whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. We do not have any indefinite-lived intangible assets.
See Note 2 and Note 3 for further discussion of goodwill and intangible assets, including those recognized in connection with recent business acquisitions.
Leases
In accordance with ASC 842, Leases, which we began applying as of January 1, 2019, we determine if an arrangement is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. For our current office and non-office classes of operating leases, we elected the practical expedient to choose not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. For our current classes of finance leases, we did not elect to apply this practical expedient and, instead, separately identify and measure the non-lease components of the contracts. As an accounting policy election, we apply the short-term lease exemption practical expedient to any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that we are reasonably certain to exercise.
Operating leases are presented within operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Finance lease ROU assets are presented within property, equipment and software and finance lease liabilities are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. Operating and finance lease ROU assets represent our right to use an underlying asset for the lease term and operating and finance lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit borrowing rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
The operating lease ROU assets are increased by any prepaid lease payments and are reduced by any unamortized lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Base rent is subject to rent escalations on each annual anniversary from the lease commencement dates. Lease expense for lease payments, including any step rent provisions specified in the lease agreements, is recognized on a straight-line basis over the lease term and is allocated among the components of noninterest expense in the consolidated statements of operations and comprehensive income (loss). The finance lease ROU assets are depreciated on a straight-line basis over the estimated useful life of seven years. Interest expense on finance leases is recognized for the difference between the present value of the lease liabilities and the scheduled lease payments within interest expense—other in the consolidated statements of operations and comprehensive income (loss).
When a lease agreement is modified, we determine if the modification grants us the right to use an additional asset that is not included in the original lease contract and if the lease payments increase commensurate with the standalone price for the additional ROU asset. If both conditions are met, we account for the agreement as two separate contracts: (i) the original, unmodified contract and (ii) a separate contract for the additional ROU asset. If both conditions are not met, the modification is not evaluated as a separate contract. Instead, based on the nature of the modification, we (i) reassess the lease classification on the modification date under the modified terms, and (ii) use the modified lease payments and discount rate to remeasure the lease liability and recognize any difference between the new lease liability and the old lease liability as an adjustment to the ROU asset.
See Note 16 for additional information on our leases.
Derivative Financial Instruments and Capped Call Transactions
We enter into derivative contracts to manage future loan sale execution risk. We did not elect hedge accounting, as management’s hedging intentions are to economically hedge the risk of unfavorable changes in the fair value of our student loans, personal loans and home loans. Our derivative instruments used to manage future loan sale execution risk as of the balance sheet dates included interest rate futures, interest rate swaps, interest rate caps, and home loan pipeline hedges. We also had interest rate lock commitments (“IRLC”) and interest rate caps that were not related to future loan sale execution risk. The interest rate futures and home loan pipeline hedges are measured at fair value and categorized as Level 1 fair value assets and liabilities, as all contracts held are traded in active markets for identical assets or liabilities and quoted prices are accessible by us at the measurement date. The interest rate swaps and interest rate caps are measured at fair value and categorized as Level 2 fair value assets and liabilities, as all contracts held are traded in active markets for similar assets or liabilities and other observable inputs are available at the measurement date. IRLCs are categorized as Level 3 fair value assets and liabilities, as the fair value is highly dependent on an assumed loan funding probability.
In the past, we have also entered into derivative contracts to hedge the market risk associated with some of our non-securitization investments. We did not elect hedge accounting.
In addition, in conjunction with a loan sale agreement we entered into during 2018, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. This provision is referred to as the “purchase price earn-out”. As the purchaser maintains control of the transferred assets and retains the risk of loss, and the assets remain legally isolated from us, the transfer qualified for true sale accounting. We determined that the purchase price earn-out is a derivative asset. Therefore, the purchase price earn-out is measured at fair value on a recurring basis and is categorized as a Level 3 fair value asset, as the fair value is highly dependent on underlying loan portfolio performance. Historically, the purchase price earn-out value was immaterial.
Changes in derivative instrument fair values are recognized in earnings as they occur. Depending on the measurement date position, derivative financial instruments are presented within other assets or accounts payable, accruals and other liabilities in the consolidated balance sheets. Our derivative instruments are reported within net cash provided by (used in) operating activities in the consolidated statements of cash flows.
The following table presents the gains (losses) recognized on our derivative instruments during the years indicated:
Year Ended December 31,
202120202019
Derivative contracts to manage future loan sale execution risk(1)(2)
$49,090 $(54,829)$(24,803)
IRLCs(1)
(11,861)14,530 916 
Interest rate caps(1)
(193)— — 
Purchase price earn-out(1)
9,312 — — 
Special payment(3)
(21,181)— — 
Third party warrants(4)
573 — — 
Derivative contracts to manage market risk associated with non-securitization investments(5)
— 996 (1,151)
Total
$25,740 $(39,303)$(25,038)
_____________________
(1) Recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
(2) The loss recognized during the year ended December 31, 2020 was inclusive of a $22,269 gain on credit default swaps that were opened and settled during the year.
(3) In conjunction with the Business Combination, the Amended Series 1 Agreement amended the original special payment provision to provide for a one-time special payment to Series 1 preferred stockholders, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), as this feature was accounted for as an embedded derivative that was not clearly and closely
related to the host contract, and will have no subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity.
(4) Includes $273 recorded within noninterest income—other, $132 recorded within noninterest expense—cost of operations and $168 recorded within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party.
(5) Recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We did not have any such derivative contracts to hedge our non-securitization investments during the year ended December 31, 2021.
Certain derivative instruments are subject to enforceable master netting arrangements. Accordingly, we present our net asset or liability position by counterparty in the consolidated balance sheets. Additionally, since our cash collateral balances do not approximate the fair value of the derivative position, we do not offset our right to reclaim cash collateral or obligation to return cash collateral against recognized derivative assets or liabilities. The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated:
December 31, 2021December 31, 2020
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
Interest rate swaps$5,444 $— $— $(947)
Interest rate caps— (668)— — 
Home loan pipeline hedges117 (313)— (1,872)
Interest rate futures— — — (136)
Total, gross$5,561 $(981)$— $(2,955)
Less: derivative netting(117)117 — — 
Total, net(1)
$5,444 $(864)$— $(2,955)
_____________________
(1) As of December 31, 2021 and 2020, we had a cash collateral requirement of $299 and $1,746, respectively, related to these instruments.
The following table presents the notional amount of derivative contracts outstanding as of the dates indicated:
December 31,
20212020
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps$4,210,000 $1,475,000 
Home loan pipeline hedges421,000 371,000 
Interest rate caps405,000 — 
Interest rate futures— 3,400,000 
IRLCs(1)
357,529 630,277 
Interest rate caps(2)
405,000 — 
Total$5,798,529 $5,876,277 
_____________________
(1) Amounts correspond with home loan funding commitments subject to IRLC agreements.
(2) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.
While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure.
Capped Call Transactions
We entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions (the “Capped Call Counterparties”). The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the Convertible Notes. The Capped Call Transactions are net purchased call options on our own common stock.
The Capped Call Transactions are separate transactions entered into by the Company with each of the Capped Call Counterparties, are not part of the terms of the Convertible Notes, and do not affect any holder’s rights under the Convertible Notes. Holders of the Convertible notes do not have any rights with respect to the Capped Call Transactions.
As the Capped Call Transactions are legally detachable and separately exercisable from the Convertible Notes, they were evaluated as freestanding instruments under ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). We concluded that the Capped Call Transactions meet the scope exceptions for derivative instruments under ASC 815. As such, the Capped Call Transactions meet the criteria for classification in equity and are included as a reduction to additional paid-in capital.
See Note 10 for additional information on the Capped Call Transactions.
Residual Interests Classified as Debt, Borrowing and Financing Costs and Convertible Senior Notes
Residual Interests Classified as Debt
For residual interests related to consolidated securitizations, the residual interests held by third parties are presented as residual interests classified as debt in the consolidated balance sheets. We measure residual interests classified as debt at fair
value on a recurring basis. We record subsequent measurement changes in fair value in the period in which the change occurs within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss). We determine the fair value of residual interests classified as debt using a discounted cash flow methodology, while also considering market data as it becomes available. We classify the residual interests classified as debt as Level 3 due to the reliance on significant unobservable valuation inputs.
We recognize interest expense related to residual interests classified as debt over the expected life using the effective yield method, which reflects a portion of the overall fair value adjustment recorded each period on our residual interests classified as debt. Interest expense related to residual interests classified as debt is presented within interest expense—securitizations and warehouses in the consolidated statements of operations and comprehensive income (loss). On a quarterly basis, we reevaluate the cash flow estimates to determine if a change to the accretable yield is required on a prospective basis.
See Note 9 for the key inputs used in the fair value measurements of residual interests classified as debt.
Borrowings and Financing Costs
We borrow from various financial institutions to finance our lending activities. Direct costs incurred in connection with financing, such as banker fees, origination fees and legal fees, are classified as deferred debt issuance costs. We capitalize these costs and report the amounts as a direct deduction from the carrying amount of the debt balance. Any difference between the stated principal amount of debt and the amount of cash proceeds received, net of debt issuance costs, is presented as a discount or premium. The capitalized debt issuance costs and the original issue discount/premium are amortized into interest expense over the expected life of the related financing agreements using the straight-line method for revolving facilities and the effective interest method for securitization debt and our senior convertible notes, which are further discussed below. Remaining unamortized fees are expensed immediately upon early extinguishment of the debt. In a debt modification for revolving debt, the initial issuance costs and any additional fees incurred as a result of the modification are deferred over the term of the new agreement, if the borrowing capacity of the revolving facility is increased. In the case that a modification results in a decrease in our borrowing capacity, any fees paid to the creditor and any third-party costs incurred are associated with the new arrangement and are, therefore, deferred and amortized over the term of the new arrangement. Unamortized deferred costs relating to the old arrangement at the time of the modification are expensed immediately in proportion to the decrease in borrowing capacity of the old arrangement. Any remaining unamortized deferred costs relating to the old arrangement are deferred and amortized over the term of the new arrangement.
The total accrued interest payable of $1,306 and $19,817 as of December 31, 2021 and 2020, respectively, was primarily related to interest associated with our borrowings and was presented within accounts payable, accruals and other liabilities in the consolidated balance sheets.
Convertible Senior Notes
In October 2021, we issued $1.2 billion aggregate principal amount of convertible senior notes due 2026 (the “Convertible Notes”). The Convertible Notes will mature on October 15, 2026, unless earlier repurchased, redeemed or converted. We will settle conversions by paying or delivering, at our election, cash, shares of our common stock or a combination of cash and shares of our common stock, based on the applicable conversion rate(s). The Convertible Notes will also be redeemable, in whole or in part, at our option at any time, and from time to time, on or after October 15, 2024 through on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the
principal amount of the Convertible Notes to be redeemed, plus accrued interest, if any, thereon to, but excluding, the redemption date, but only if certain liquidity conditions described in the indenture are satisfied and certain conditions are met with respect to the last reported sale price per share of our common stock prior to conversion. See Note 10 for more detailed disclosure of these term and features of the Convertible Notes.
We elected to evaluate each embedded feature of the arrangement individually. We concluded that each of the conversion rights, optional redemption rights, fundamental change make-whole provision and repurchase rights did not require bifurcation as derivative instruments under ASC 815, Derivatives and Hedging (“ASC 815”), which we will reevaluate each reporting period. The additional interest and special interest that accrue on the notes in the event of our failure to comply with certain registration or reporting requirements are required to be bifurcated from the host contract, as the reporting requirement triggering event is not clearly and closely related to the host convertible debt contract, and therefore we measured the contingent interest feature at fair value each reporting period. The value was determined to be immaterial; therefore, we accounted for the Convertible Notes wholly as debt, which was recognized on the settlement date. Accordingly, we allocated all debt issuance costs to the debt instrument on the basis of materiality.
In connection with the pricing of the Convertible Notes, we entered into privately negotiated capped call transactions with certain financial institutions, which are further discussed below.
Fractional Shares
Through 8 Limited, which is a Hong Kong-based subsidiary, we have a “stock bits” feature that allows members with an 8 Limited investment account to purchase fractional shares in various companies. 8 Limited maintains control and risk over the stock inventory and, as such, must recognize on its balance sheet both the fraction of a share retained by the company and the fraction of a share owned by the member, with the latter also recorded as a payable to the member. The inventory is recorded at its fair value based on the closing price of the associated stock. As of December 31, 2021, the aggregate value of fractional shares owned by SoFi Hong Kong members was determined to be immaterial.
In our “stock bits” offering through our domestic SoFi Invest accounts, SoFi engages Apex as the clearing broker and, as such, does not retain control and risk over the stock inventory associated with fractional shares. Therefore, SoFi does not recognize the fractional shares owned by domestic SoFi Invest members on its consolidated balance sheets.
Redeemable Preferred Stock Immediately prior to the Business Combination, all shares of the Company’s outstanding shares of redeemable preferred stock, other than the Series 1 preferred stock, converted into shares of SoFi Technologies common stock. Series 1 preferred stock is classified in temporary equity, as it is not fully controlled by SoFi.
Foreign Currency Translation Adjustments We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the consolidated statements of operations and comprehensive income (loss).
Accumulated Deficit We purchase SoFi common stock from time to time and constructively retire the common stock. We record purchases of common stock as a reduction to accumulated deficit in the consolidated balance sheets.
Interest Income
We record interest income associated with loans measured at fair value over the term of the underlying loans using the effective interest method on unpaid loan principal amounts, which is presented within interest income—loans in the consolidated statements of operations and comprehensive income (loss). We also record accrued interest income associated with loans measured at amortized cost within interest income—loans. We stop accruing interest and reverse all accrued but unpaid interest at the time a loan charges off. Loans are returned to accrual status if the loans are brought to nondelinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in management’s judgment, will continue to make scheduled periodic principal and interest payments.
We also have interest income associated with our investments in AFS debt securities. See “Investments in Debt Securities” in this Note 1 for additional information.
During the years ended December 31, 2021, 2020 and 2019, related party interest income primarily arose from a note receivable we issued to a stockholder in 2019 that was repaid during 2020 and lending activities with Apex, our former equity method investee, which were settled in February 2021. See Note 15 for additional information. Other interest income is primarily earned on our bank balances and on member deposits with our member bank holding companies that enable our SoFi Money product.
Loan Commitments
We offer a program whereby applicants can lock in an interest rate on an in-school loan to be funded at a later time. Applicants can exit the loan origination process up until the loan funding date. SoFi is obligated to fund the loan at the committed terms on the disbursement date if the borrower does not cancel prior to the loan funding date. The student loan commitments meet the scope exception under ASC 815 for issuers of commitments to originate non-mortgage loans. As the writer of the commitments, we elected the fair value option to measure our unfunded student loan commitments to align with the measurement methodology of our originated student loans. As such, our student loan commitments are carried at fair value on a recurring basis. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss). We classify student loan commitments as Level 3 because the valuations are highly dependent upon a loan funding probability, which is an unobservable input.
Loan commitments also include IRLCs, whereby we commit to interest rate terms prior to completing the origination process for home loans. IRLCs are derivative instruments that are measured at fair value on a recurring basis. Given that a home loan origination is contingent on a plethora of factors, our IRLCs are inherently uncertain and unobservable. As such, we classify IRLCs as Level 3. See “Derivative Financial Instruments” in this Note 1 for additional information on our derivative instruments.
See Note 9 for the key inputs used in the fair value measurements of our loan commitments.
Revenue Recognition and Technology Platform Fees
In accordance with ASC 606, in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services.
Technology Platform Fees
Commencing in May 2020 with our acquisition of Galileo, we earn technology platform fees for providing an integrated platform-as-a-service for financial and non-financial institutions. Within our technology platform fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. Our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract. We had deferred revenues of $2,553 and $2,520 as of December 31, 2021 and 2020, respectively, which are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. During the years ended December 31, 2021 and 2020, we recognized revenue of $685 and $342, respectively, associated with deferred revenues within noninterest income—technology platform fees in the consolidated statements of operations and comprehensive income (loss).
Sales commissions: Capitalized sales commissions presented within other assets in the consolidated balance sheets, which are incurred in connection with obtaining a technology platform-as-a-service contract, were $678 and $527 as of December 31, 2021 and 2020, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the year ended December 31, 2021, commissions recorded within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss) were $3,302, of which $267 represented amortization of capitalized sales commissions. During the year ended December 31, 2020, commissions were $1,659, of which $185 represented amortization of capitalized sales commissions.
Payments to customers: Certain contracts include provisions for customer incentives, which may be payable up front or applied to future or past technology platform fees. Payments to customers reduce the gross transaction price, as they represent constraints on the revenues expected to be realized. Upfront customer incentives are recorded as prepaid assets and presented within other assets in the consolidated balance sheets, and are applied against revenue in the period such incentives are earned by the customer. Customer incentives for future technology platform fees are applied ratably against future Technology Platform activity in accordance with the contract terms to the extent that cumulative revenues with the customer, net of incentives, are positive. Any incentive in excess of cumulative revenues is expensed as a contract cost. Customer incentives for past technology platform fees are recorded as a reduction to revenue in the period incurred, subject to the same cumulative revenue constraints.
Payment Network Fees
In customer arrangements separate from our technology platform fees, we earn payment network fees, which primarily constitute interchange fees, for satisfying our performance obligation to enable transactions through a payment network as the sponsor of such transactions. Interchange fees, which are remitted by the merchant, are calculated by multiplying a set fee percentage (as stipulated by the debit card payment network) by the transaction volume processed through such network. Transaction volume and related fees payable to us for interchange and other network fees are reported to us on a daily basis. Therefore, there is no constrained variable consideration within a reporting period. Using the expected value method, we assign a 100% probability to the transaction price as calculated using actual transaction volume processed through the payment network.
Our performance obligation is completely satisfied once we successfully fulfill a requested transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with processed transaction volume representing the measure that faithfully depicts the transfer of our services. The value of our services is represented by the network fee rates, as stipulated by the applicable payment network.
In addition to payment network fees earned on our own branded cards, we also earn payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. In these arrangements, we have two performance obligations: i) performing card program services, and ii) performing transaction
card enablement services, for which we arrange for performance by the network associations and bank issuers to enable certain aspects of the transaction card process. The transaction price in these arrangements is largely dependent on network association guidelines and the program management economics are pooled, with the Company receiving a contractual share of payment network fees.
The payment network fees are determined based on the type and volume of monthly card program activity and, therefore, represent variable consideration, as such amounts are not known at contract inception. However, as payment network fees are settled on a monthly basis, the variable consideration within a reporting period is not constrained. We satisfy both performance obligations continuously throughout the contractual arrangements and our customers receive and consume the benefits simultaneously as we perform. Further, satisfaction of both performance obligations occurs within the same measurement period. As such, allocation of the transaction price between the performance obligations is not meaningful, as it would not impact the pattern of revenue recognition. Using the expected value method, we assign a 100% probability to the transaction price as calculated using actual monthly card program activity.
Our program management performance obligations are completely satisfied once we successfully enable and process transaction card activity. We measure our progress toward complete satisfaction of our performance obligations using the output method, with card program activity representing the measure that faithfully depicts the transfer of program management services. The value of our services is represented by the transaction fee rates, as stipulated by the network association guidelines.
In our payment network fee transactions, we act in the capacity of an agent due to our lack of pricing power and because we are not primarily responsible for fulfilling the transaction enablement performance obligation, and ultimately lack control over fulfilling the performance obligations to the customer. Therefore, we recognize revenue net of fees paid to other parties within the payment networks.
Referrals
We earn specified referral fees in connection with referral activities we facilitate through our platform.
In one type of referral arrangement, the referral fee is paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. As such, the third-party enterprise partners are our customers in these referral arrangements.
Our single performance obligation is to present referral leads to our enterprise partner customers. In some instances, the referral fee is calculated by multiplying a set fee percentage by the dollar amount of a completed transaction between our partners and their customers. In other instances, the referral fee represents the price per referral multiplied by the number of referrals (referred units) as measured by a consummated transaction between our partners and their customers.
As the transaction volume or referred units are not known at contract inception, these arrangements contain variable consideration. However, as referral fees are billed to, and collected directly from, our partners on a monthly basis, the variable consideration within a reporting period is not constrained. We recognize revenue at the time of a referral-based transaction by applying the expected value method, wherein we assign 100% probability to the transaction price as calculated using actual transaction volume or referred units.
We satisfy our performance obligation continuously throughout the contractual arrangements with our partners and our partners receive and consume the benefits simultaneously as we perform. Our referral fee performance obligation is completely satisfied once we provide referrals to our partners and there is a consummated transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with referred units or referred transaction volume representing the measure that faithfully depicts the transfer of referral services to our partners. The value of our services transferred to our partners is represented by the referral fee rate, as agreed upon at contract inception.
In this type of referral arrangement, we act in the capacity of a principal, as we are primarily responsible for fulfilling our referral promise to our enterprise customers, exhibit control, and have discretion in setting the price we charge to our enterprise customers. Therefore, we present our revenue on a gross basis.
Beginning in the third quarter of 2021, we entered into another type of referral arrangement whereby we earn referral fulfillment fees for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan
originator, which is our single performance obligation in the arrangement. Under the initial agreement, the referral fulfillment fee was determined as the lower of a fixed per-loan amount or the multiplication of a set fee percentage by the aggregate loan origination principal balance. Through amendments to the agreement executed during the fourth quarter of 2021, the referral fulfillment fee on each referred loan is determined as either of two fixed amounts based on the aggregate origination principal balance of the loan. In the event that a loan is determined to be ineligible and such loan becomes a charged-off loan, both as defined in the contract agreement (referred to as an “ineligible charged-off loan”), we must re-pay to the customer the outstanding principal amount plus all accrued but unpaid interest of the ineligible charged-off loan, as well as a pro rata amount of fees previously paid for the ineligible charged-off loan (referred to as the “referral fulfillment fee penalty”).
As the number and size of referred loans are not known at contract inception, this arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We elected to estimate the amount of variable consideration using the expected value method, wherein we evaluate the conditional probability of ineligible loan charge-offs and, thereby, estimate referral fulfillment fee penalties. This method is appropriate for our arrangement, as we have meaningful experience through our lending business in evaluating expected ineligible referrals. The revenue recognized using the expected value method reflects our estimated net referral fulfillment fees after adjusting for the estimated referral fulfillment fee penalty. Referral fulfillment fees are presented within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We recognize a liability within accounts payable, accruals and other liabilities in the consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $118 as of December 31, 2021.
We satisfy our performance obligation continuously throughout the contractual arrangement with our customer and our customer receives and consumes the benefits simultaneously as we perform. We completely satisfy our performance obligation each time we provide a loan referral and our customer purchases the underlying loan from the third-party loan originator. We apply the right-to-invoice practical expedient to recognize referral fulfillment fees, as our right to consideration corresponds directly with the value of the service received, as measured using the expected value method and application of the referral fulfillment fee rate. In this arrangement, we act in the capacity of a principal, as we are primarily responsible for fulfilling our referral obligation to our customer, we have risk of loss if the loans that comprise our referral fulfillment services do not meet the contractual eligibility standards, and we have discretion in setting the price we charge to our customer. Therefore, we present our revenue on a gross basis.
Enterprise Services
We earn specified enterprise services fees in connection with services we provide to enterprise partners.
In one type of enterprise services arrangement, we earn fees in connection with services we provide to enterprise partners to facilitate transactions for the benefit of their employees, such as 529 plan contributions or student loan payments, which represents our single performance obligation in the arrangements. Similar to our referral services, we agree on a rate per transaction with each of our customers, which represents variable consideration at contract inception. However, as enterprise service fees are billed to, and collected directly from, our partners on a monthly basis, the variable consideration within a reporting period is not constrained.
We satisfy our performance obligation to provide enterprise services continuously throughout our contractual arrangements with our enterprise partners. Our enterprise partners receive and consume the benefits of our enterprise services simultaneously as we perform. Our enterprise service performance obligation is completely satisfied upon completion of a transaction on behalf of our enterprise partners. For instance, we may facilitate student loan payments made by enterprise partners on behalf of their employees by directing those payments to the appropriate student loan servicer. Once the student loan servicer recognizes the payment, the transaction and our performance obligation are simultaneously complete. We measure our progress toward complete satisfaction of our performance obligation using the output method, with completed transaction requests representing the measure that faithfully depicts the transfer of enterprise services. The value of our enterprise services is represented by a negotiated fee, as agreed upon at contract inception. Our revenue is reported on a gross basis, as we act in the capacity of a principal, demonstrate the requisite control over the service, and are primarily responsible for fulfilling the performance obligation to our enterprise service customer.
Beginning in the second quarter of 2021, we entered into another type of enterprise services arrangement whereby we earn fees for providing advisory services in connection with helping operating companies successfully complete the business combination process, inclusive of obtaining the required shareholder votes. The amount of revenue is recorded on a gross basis
within noninterest income—other in the consolidated statements of operations and comprehensive income (loss), as we fully control the fulfillment of our performance obligation acting in the capacity of a principal. Out-of-pocket expenses associated with satisfying the performance obligation are recognized at the time the related revenue is recognized and presented as part of noninterest expense—general and administrative.
Equity Capital Markets Services
Beginning in the second quarter of 2021, we earned underwriting fees related to our membership in underwriting syndicates for initial public offerings (“IPOs”). The underwriting of securities is the only performance obligation in our underwriting agreements, and we recognize underwriting fees on the trade date. We are a principal in our underwriting agreements, because we demonstrate the requisite control over the satisfaction of the performance obligation through the assumption of underwriter liability for our designated share allotment. As such, we recognize revenue on a gross basis.
Beginning in the fourth quarter of 2021, we also earned dealer fees for providing dealer services in partnership with underwriting syndicates for IPOs. We are engaged to place IPO shares that are allocated to us by the underwriters with third-party investors for which we have received a confirmed order, which represents our only performance obligation in the arrangement. The amount of consideration to which we are entitled represents the selling concession (spread between our purchase price and the offer price, which are set by the underwriting syndicate), multiplied by the number of shares we placed in the IPO deal. The share allocation is ultimately determined by the underwriter. We recognize revenue on the trade date. We are an agent in this arrangement, as we do not share in any underwriting liability, do not bear risk of loss if shares remain unpurchased, and do not establish the price, which is set by the underwriting syndicate. As the amount of dealer fees recognized is reflective of the number of allocated shares we sold to third-party investors, we apply the right-to-invoice practical expedient.
We recognize equity capital markets services revenue, consisting of both underwriting fees and dealer fees, within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
Brokerage
We earn fees in connection with facilitating investment-related transactions through our platform, which constitutes our single performance obligation in the arrangements. Our performance obligation is determined by the specific service selected by the customer, such as brokerage transactions, share lending, digital assets transactions and exchange conversion. In certain brokerage transactions, we act in the capacity of a principal and earn negotiated fees based on the number and type of transactions requested by our customers. In our share lending arrangements and pay for order flow arrangements, we do not oversee the execution of the transactions, and ultimately lack requisite control, but benefit through a negotiated revenue sharing arrangement. Therefore, we act in the capacity of an agent and recognize revenue net of fees paid to satisfy the performance obligation. In our digital assets arrangements, our fee is calculated as a negotiated percentage of the transaction volume. In these arrangements, we act in the capacity of a principal and recognize revenue gross of the fees we pay to obtain the digital assets for access by our members. In our exchange conversion arrangements, we act in the capacity of a principal and earn fees for exchanging one currency for another.
As the investment-related transaction volume and type are not known at contract inception, these arrangements contain variable consideration. However, as our brokerage fees are settled on a monthly basis or sometimes daily basis, the variable consideration within a reporting period is not constrained. We recognize revenue at the time of an investment transaction by applying the expected value method, wherein we assign 100% probability to the transaction price as calculated using actual investment transaction activity.
Our brokerage performance obligation is completely satisfied upon completion of an investment-related transaction. We measure our progress toward complete satisfaction of our performance obligation using the output method, with investment transaction activity representing the measure that faithfully depicts the transfer of brokerage services. The value of our brokerage services is represented by the transaction fees, as determined at the point of transaction.
We incur costs for clearing and processing services that relate to satisfied performance obligations within our brokerage arrangements. In accordance with ASC 340-40, Other Assets and Deferred Costs — Contracts with Customers, we expense these costs as incurred. Although certain of our commission costs qualify for capitalization, their amortization period is less than one year. Therefore, utilizing the practical expedient related to incremental costs of obtaining a contract, we expense
these costs as incurred. Additionally, we pay upfront account funding incentives to customers that are not tied to a contract period. Therefore, we expense these payments as incurred.
In the fourth quarter of 2021, we introduced a flat monthly platform fee that is charged to members associated with our 8 Limited business in Hong Kong. The fee is assessed at each month end on all members with at least one open 8 Limited brokerage account (with the exception of accounts for which the applicable fee exceeds the account’s net asset value at month end) regardless of the volume or frequency of trading activity during the month. The fee is deducted directly from the member’s primary brokerage account on the first day of the subsequent month. Our single performance obligation is to stand ready to provide the specific brokerage service selected by the member. As the number of members with open accounts that satisfy the net asset value threshold at any month end are not known at contract inception, this arrangement contains variable consideration. However, as the monthly platform fees are settled on a monthly basis, the variable consideration within a reporting period is not constrained. Our members simultaneously receive and consume the benefits of our platform throughout the month to which the fee applies. We apply the right-to-invoice practical expedient to recognize the monthly platform fee, as the amount to which we are entitled at month end corresponds to the value of our performance completed for the month.
Contract Assets
As of December 31, 2021 and 2020, accounts receivable, net associated with revenue from contracts with customers was $33,748 and $23,278, respectively, which were reported within other assets in the consolidated balance sheets.
Disaggregated Revenue
For the periods accounted for in accordance with ASC 606, the table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology platform fees and noninterest income—other in the consolidated statements of operations and comprehensive income (loss). There are no revenues from contracts with customers attributable to our Lending segment for any of the years presented.
Year Ended December 31,
202120202019
Financial Services
Referrals
$15,750 $5,889 $3,652 
Brokerage
22,733 3,470 84 
Payment network
10,642 2,433 660 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$54,666 $12,036 $4,520 
Technology Platform
Technology platform fees
$191,847 $90,128 $— 
Payment network
1,205 1,167 — 
Total
$193,052 $91,295 $— 
Total Revenue from Contracts with Customers
Technology platform fees
$191,847 $90,128 $— 
Referrals
15,750 5,889 3,652 
Payment network
11,847 3,600 660 
Brokerage
22,733 3,470 84 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$247,718 $103,331 $4,520 
Advertising, Sales and Marketing Included within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss) are advertising production costs and advertising communication costs, as well as amounts paid to various affiliates to market our products. For the years ended December 31, 2021, 2020 and 2019, advertising totaled $183,106, $138,888 and $169,942, respectively. Advertising costs are expensed either as incurred or when the advertising takes place, depending on the nature of the advertising activity. Expenses incurred by us related to member acquisition, including brand development, business development and direct member marketing expenses, are also presented within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive income (loss).
Technology and Product Development Expenses incurred by us related to technology, product design and implementation, which includes compensation and benefits, are classified as noninterest expense—technology and product development in the consolidated statements of operations and comprehensive income (loss).
Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded in accounts payable, accruals and other liabilities in the consolidated balance sheets. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Such estimates are based on the best information available at the time. As additional information becomes available, we reassess the potential liability and record an estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. Due to the inherent uncertainties of loss contingencies, estimates may be different from the actual outcomes. With respect to legal proceedings, we recognize legal fees as they are incurred within noninterest expense—general and administrative in our consolidated statements of operations and comprehensive income (loss). See Note 16 for discussion of contingent matters.
Stock-Based Compensation Share-based compensation made to employees and non-employees, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), is measured based on the grant date fair value of the awards and is recognized as compensation expense typically on a straight-line basis over the period during which the share-based award holder is required to perform services in exchange for the award (the vesting period) for stock options and RSUs and on an accelerated attribution basis for each vesting tranche over the respective derived service period for PSUs. Share-based compensation expense is allocated among the components of noninterest expense in the consolidated statements of operations and comprehensive income (loss). We use the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) to estimate the fair value of stock options. RSUs are measured based on the fair values of the underlying stock on the dates of grant. We use a Monte Carlo simulation model to estimate the fair value of PSUs. We recognize forfeitures as incurred and, therefore, reverse previously recognized share-based compensation expense at the time of forfeiture. See Note 13 for further discussion of share-based compensation.
Comprehensive Loss Comprehensive loss consists of net loss, unrealized gains or losses on our investments in AFS debt securities and foreign currency translation adjustments.
Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. In assessing the realizability of deferred tax assets, management reviews all available positive and negative evidence. Valuation allowances are recorded to reduce deferred tax assets to the amount we believe is more likely than not to be realized. We follow accounting guidance in ASC 740, Income Taxes, as it relates to uncertain tax positions, which provides information and procedures for financial statement recognition and measurement of tax positions taken, or expected to be taken, in tax returns. The tax effects from an uncertain tax position can be recognized in the financial statements only if the tax position would more likely than not be upheld on examination by the taxing authorities based on the merits of the tax position. Management is required to analyze all open tax years, as defined by the statute of limitations, for all jurisdictions. We accrue tax penalties and interest, if any, as incurred and recognize them within income tax (expense) benefit in our consolidated statements of operations and comprehensive income (loss).
Recently Adopted Accounting Standards
Facilitation of the Effects of Reference Rate Reform on Financial Reporting
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies the scope of Topic 848 for certain derivative instruments that use an interest rate for margining, discounting or contract price alignment. The new standard provides for optional expedients and other guidance regarding the accounting related to modifications of contracts, hedging relationships and other transactions affected by reference rate reform. ASU 2020-04 and ASU 2021-01 were both effective upon issuance and may be applied to contract modifications from January 1, 2020 through December 31, 2022.
The Alternative Reference Rates Committee (“ARRC”), a group of private market participants, was convened in the United States by the Federal Reserve Board and the Federal Reserve Bank of New York in cooperation with other United States agencies to promote the successful transition from United States Dollar LIBOR (“USD LIBOR”). The ARRC has selected the Secured Overnight Financing Rate (“SOFR”) as their recommended alternative to USD LIBOR. After December 31, 2021, the ICE Benchmark Administration Limited, the administrator of LIBOR (the “IBA”), ceased publishing the one-week and two-month USD LIBOR tenors. We do not have any exposure to these tenors. The IBA expects to continue to publish all remaining USD LIBOR tenors through June 30, 2023, with the overnight and 12-month tenors ceasing immediately thereafter and the one-month, three-month and six-month tenors becoming non-representative from that date.
We adopted the provisions of the standard in the fourth quarter of 2021 using the prospective method of adoption. We established a cross-functional project team to execute our company-wide transition away from USD LIBOR. In the fourth quarter of 2021, we began to use SOFR as the pricing index on all new variable-rate loan originations, and on new warehouse facility agreements and other financial instruments. We also transitioned some existing warehouse facility lines to SOFR and elected to apply the optional expedients when all such terms were related to the replacement of the reference rate. We are continuing to review existing variable-rate loans, borrowings, Series 1 redeemable preferred stock dividends and derivative instruments that utilize USD LIBOR as the reference rate and expect to continue transitioning these instruments to SOFR or other representative alternative reference rates throughout 2022 in accordance with the provisions of the standard. We do not expect there to be a material impact on our consolidated financial statements as a result of adopting this standard.
Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The standard is effective for fiscal years and interim periods beginning after December 15, 2023, with early adoption permitted. We early adopted the provisions of ASU 2020-06 effective January 1, 2021. The adoption of this standard did not have an impact on our consolidated financial statements, as we had no notes prior to an issuance in October 2021. The notes issued in October 2021 were accounted for in accordance with this standard.
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Aging Analysis for Credit Card Loans
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:
Delinquent Loans
Current30–59 Days60–89 Days
≥ 90 Days(1)
Total Delinquent Loans
Total Loans(2)
December 31, 2021
Credit card loans$115,356 1,893 1,683 2,658 6,234 $121,590 
December 31, 2020
Credit card loans$3,864 74 2 — 76 $3,940 
_____________________
(1)As of December 31, 2021, all of the credit card loans that were 90 days or more past due continued to accrue interest.
(2)Presented before allowance for credit losses of $7,037 and $219 as of December 31, 2021 and 2020, respectively, and excludes accrued interest of $1,359 and $2, respectively.
Schedule of Internal Risk Tier Categories
The following table presents the amortized cost basis of our credit card loan portfolio (excluding accrued interest and before the allowance for credit losses) as of December 31, 2021 based on origination FICO. Generally, higher origination FICO score bands reflect higher anticipated credit performance than lower origination FICO score bands.
Origination FICODecember 31, 2021
≥ 800$10,016 
780 – 7998,624 
760 – 7799,976 
740 – 75913,581 
720 – 73918,358 
700 – 71922,579 
680 – 69921,736 
660 – 67914,044 
640 – 6591,969 
< 640707 
Total credit card loans$121,590 
Schedule of Property, Plant and Equipment
The table below presents our major classes of depreciable and amortizable assets by function as of the dates indicated:
Gross
Balance		Accumulated Depreciation/AmortizationCarrying
Value
December 31, 2021
Computer hardware$16,864 $(8,583)$8,281 
Leasehold improvements39,726 (12,233)27,493 
Furniture and fixtures(1)
18,326 (7,748)10,578 
Software(2)
75,632 (22,996)52,636 
Finance lease ROU assets(3)
15,100 (2,876)12,224 
Construction in progress(4)
661 — 661 
Total$166,309 $(54,436)$111,873 
December 31, 2020
Computer hardware$13,494 $(6,037)$7,457 
Leasehold improvements36,725 (7,920)28,805 
Furniture and fixtures(1)
12,361 (5,251)7,110 
Software(2)
42,323 (18,587)23,736 
Finance lease ROU assets(3)
15,100 (719)14,381 
Total$120,003 $(38,514)$81,489 
_____________________
(1)Furniture and fixtures primarily include office equipment as well as other furniture and fixtures associated with SoFi Stadium.
(2)Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the year ended December 31, 2021, we capitalized $7,776 of share-based compensation related to internally-developed software, and we recognized associated amortization expense of $792. We did not capitalize any share-based compensation during the years ended December 31, 2020 and 2019.
(3)Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See Note 16 for additional information on our leases.
(4)Construction in progress as of December 31, 2021 relates to furniture and fixtures and computer hardware.
Schedule of Derivative Instruments
The following table presents the gains (losses) recognized on our derivative instruments during the years indicated:
Year Ended December 31,
202120202019
Derivative contracts to manage future loan sale execution risk(1)(2)
$49,090 $(54,829)$(24,803)
IRLCs(1)
(11,861)14,530 916 
Interest rate caps(1)
(193)— — 
Purchase price earn-out(1)
9,312 — — 
Special payment(3)
(21,181)— — 
Third party warrants(4)
573 — — 
Derivative contracts to manage market risk associated with non-securitization investments(5)
— 996 (1,151)
Total
$25,740 $(39,303)$(25,038)
_____________________
(1) Recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
(2) The loss recognized during the year ended December 31, 2020 was inclusive of a $22,269 gain on credit default swaps that were opened and settled during the year.
(3) In conjunction with the Business Combination, the Amended Series 1 Agreement amended the original special payment provision to provide for a one-time special payment to Series 1 preferred stockholders, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), as this feature was accounted for as an embedded derivative that was not clearly and closely
related to the host contract, and will have no subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity.
(4) Includes $273 recorded within noninterest income—other, $132 recorded within noninterest expense—cost of operations and $168 recorded within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party.
(5) Recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We did not have any such derivative contracts to hedge our non-securitization investments during the year ended December 31, 2021.
The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated:
December 31, 2021December 31, 2020
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
Interest rate swaps$5,444 $— $— $(947)
Interest rate caps— (668)— — 
Home loan pipeline hedges117 (313)— (1,872)
Interest rate futures— — — (136)
Total, gross$5,561 $(981)$— $(2,955)
Less: derivative netting(117)117 — — 
Total, net(1)
$5,444 $(864)$— $(2,955)
_____________________
(1) As of December 31, 2021 and 2020, we had a cash collateral requirement of $299 and $1,746, respectively, related to these instruments.
Schedule of Notional Amounts of Derivatives
The following table presents the notional amount of derivative contracts outstanding as of the dates indicated:
December 31,
20212020
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps$4,210,000 $1,475,000 
Home loan pipeline hedges421,000 371,000 
Interest rate caps405,000 — 
Interest rate futures— 3,400,000 
IRLCs(1)
357,529 630,277 
Interest rate caps(2)
405,000 — 
Total$5,798,529 $5,876,277 
_____________________
(1) Amounts correspond with home loan funding commitments subject to IRLC agreements.
(2) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.
Schedule of Revenues
Year Ended December 31,
202120202019
Financial Services
Referrals
$15,750 $5,889 $3,652 
Brokerage
22,733 3,470 84 
Payment network
10,642 2,433 660 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$54,666 $12,036 $4,520 
Technology Platform
Technology platform fees
$191,847 $90,128 $— 
Payment network
1,205 1,167 — 
Total
$193,052 $91,295 $— 
Total Revenue from Contracts with Customers
Technology platform fees
$191,847 $90,128 $— 
Referrals
15,750 5,889 3,652 
Payment network
11,847 3,600 660 
Brokerage
22,733 3,470 84 
Equity capital markets services2,643 — — 
Enterprise services
2,898 244 124 
Total
$247,718 $103,331 $4,520 
v3.22.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Pro Forma Information The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the years ended December 31, 2020 and 2019 as if the business combination had occurred on January 1, 2019:
Year Ended December 31,
20202019
Total net revenue$625,413 $483,921 
Net loss(304,219)(209,770)
v3.22.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
A rollforward of our goodwill balance is presented below as of the dates indicated:
December 31,
20212020
Beginning balance
$899,270 $15,673 
Less: accumulated impairment
— — 
Beginning balance, net
899,270 15,673 
Additional goodwill recognized(1)
— 883,597 
Other adjustments(2)
(743)— 
Ending balance(3)
$898,527 $899,270 
_____________________
(1) The additional goodwill recognized as of December 31, 2020 includes $873,358 related to the acquisition of Galileo and $10,239 related to the acquisition of 8 Limited. See Note 2 for additional information.
(2) As of December 31, 2021, includes an adjustment related to the finalization of the closing net working capital calculation in April 2021 for the acquisition of Galileo. See Note 2 for additional information.
(3) As of December 31, 2021, we had goodwill attributable to the following reportable segments: $872,615 to Technology Platform and $25,912 to Financial Services. As of December 31, 2020, we had goodwill attributable to the following reportable segments: $873,358 to Technology Platform and $25,912 to Financial Services.
Schedule of Finite-Lived Intangible Assets
The following is a summary of the carrying amount and estimated useful lives of our intangible assets by class as of the dates indicated:
Weighted Average Useful Life (Years)
Gross Balance
Accumulated Amortization
Net Book Value
December 31, 2021
Developed technology8.5$257,438 $(49,401)$208,037 
Customer-related3.6125,350 (57,083)68,267 
Trade names, trademarks and domain names8.610,000 (1,901)8,099 
Core banking infrastructure(1)
n/a17,100 (17,100)— 
Broker-dealer license and trading rights
5.7250 (74)176 
Total
$410,138 $(125,559)$284,579 
December 31, 2020
Developed technology(2)
8.5$257,438 $(19,142)$238,296 
Customer-related(2)
3.6125,350 (22,102)103,248 
Trade names, trademarks and domain names(2)
8.610,000 (736)9,264 
Core banking infrastructure(1)(2)
1.017,100 (13,043)4,057 
Broker-dealer license and trading rights(2)
5.7250 (29)221 
Total
$410,138 $(55,052)$355,086 
_____________________
(1) In connection with the acquisition of Galileo during the year ended December 31, 2020, we accelerated the useful life of our existing core banking infrastructure to May 2021. Although the intangible asset was fully amortized as of December 31, 2021, it remains in use by the Company.
(2) During the year ended December 31, 2020, the Company acquired $253,000 in developed technology, $125,000 in customer-related intangible assets and $10,000 in trade names, trademarks and domain names related to the acquisition of Galileo. Other additions to developed technology, customer-related and broker-dealer license and trading rights intangible assets related to the acquisition of 8 Limited.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated future amortization expense as of December 31, 2021 is as follows:
2022$66,449 
202364,753 
202431,468 
202531,468 
202630,641 
Thereafter59,800 
Total$284,579 
v3.22.0.1
Investments in AFS Debt Securities (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investments in Debt Securities The following table presents our investments in AFS debt securities as of December 31, 2021. We did not have any investments in debt securities as of December 31, 2020.
December 31, 2021
Amortized Cost(1)
Accrued InterestGross Unrealized Gains
Gross Unrealized Losses(2)
Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities$103,014 $73 $— $(584)$102,503 
Multinational securities(4)
19,911 109 — (154)19,866 
Corporate bonds39,894 235 — (480)39,649 
Agency TBA7,457 13 4 (8)7,466 
Agency mortgage-backed securities4,153 14 — (31)4,136 
Other asset-backed securities9,610 5 — (91)9,524 
Commercial paper9,939 — — — 9,939 
Other(5)
1,818 13 — (7)1,824 
Total investments in AFS debt securities$195,796 $462 $4 $(1,355)$194,907 
_____________________
(1) Amortized cost basis reflects the amortization of premium of $384 during the year ended December 31, 2021.
(2) As of December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. See Note 1 for additional information. Additionally, no such investments have been in a continuous unrealized loss position for more than 12 months, as we made the investments during the third quarter of 2021.
(3) Investments in AFS debt securities are recorded at fair value.
(4) As of December 31, 2021, includes sovereign foreign and supranational bonds.
(5) As of December 31, 2021, includes state and city municipal bond securities.
Schedule of Investments by Contractual Maturity
The following table presents the amortized cost and fair value of our investments in AFS debt securities as of December 31, 2021 by contractual maturity.
Due Within One YearDue After One Year Through Five YearsDue After Five Years Through Ten YearsDue After Ten YearsTotal
December 31, 2021
Investments in AFS debt securities—Amortized cost:
U.S. Treasury securities$— $103,014 $— $— $103,014 
Multinational securities— 19,911 — — 19,911 
Corporate bonds— 39,894 — — 39,894 
Agency TBA— — — 7,457 7,457 
Agency mortgage-backed securities— — — 4,153 4,153 
Other asset-backed securities— 7,600 2,010 — 9,610 
Commercial paper9,939 — — — 9,939 
Other600 1,218 — — 1,818 
Total investments in AFS debt securities$10,539 $171,637 $2,010 $11,610 $195,796 
Investments in AFS debt securities—Fair value(1):
U.S. Treasury securities$— $102,430 $— $— $102,430 
Multinational securities— 19,757 — — 19,757 
Corporate bonds— 39,414 — — 39,414 
Agency TBA— — — 7,453 7,453 
Agency mortgage-backed securities— — — 4,122 4,122 
Other asset-backed securities— 7,527 1,992 — 9,519 
Commercial paper9,939 — — — 9,939 
Other599 1,212 — — 1,811 
Total investments in AFS debt securities$10,538 $170,340 $1,992 $11,575 $194,445 
_____________________
(1) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $462 as of December 31, 2021.
Schedule of Proceeds and Gross Realized Gains and Losses
The following table presents the proceeds and gross realized gains and losses from sales and maturities of our investments in debt securities during the year ended December 31, 2021. Realized gains and losses are presented within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the year presented.
Year Ended
December 31, 2021
Investments in AFS debt securities
Gross realized gains included in earnings$44 
Gross realized losses included in earnings(152)
Net realized losses$(108)
Gross proceeds from sales and maturities(1)
$57,541 
_____________________
(1) Proceeds from maturities of investments in AFS debt securities during the year ended December 31, 2021 were $4,799.
v3.22.0.1
Loans (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Loans Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income, as applicable, as of the dates indicated:
December 31,
20212020
Loans at fair value
Securitized student loans$574,328 $908,427 
Securitized personal loans234,576 559,743 
Student loans2,876,509 1,958,032 
Home loans212,709 179,689 
Personal loans2,054,850 1,253,177 
Total loans at fair value5,952,972 4,859,068 
Loans at amortized cost(1)
Credit card loans(2)
115,912 3,723 
Commercial loan(3)
— 16,512 
Total loans at amortized cost115,912 20,235 
Total loans$6,068,884 $4,879,303 
_____________________
(1) See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326, Financial Instruments—Credit Losses (“ASC 326”).
(2) During the year ended December 31, 2021, we had originations of credit card loans of $380,979 and gross repayments on credit card loans of $261,283, of which $474 were non-cash reductions to the loan balance through reward point redemptions. During the year ended December 31, 2020, we had originations of $6,957 and gross repayments of $3,017.
(3) During the third quarter of 2021, we issued a commercial loan that had a principal balance of $10,000, all of which was repaid during the third quarter of 2021. During the fourth quarter of 2020, we issued a commercial loan that had a principal balance of $16,500 and accumulated unpaid interest of $12 as of December 31, 2020, all of which was repaid during January 2021.
The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated:
Student LoansHome LoansPersonal LoansTotal
December 31, 2021
Unpaid principal(1)
$3,356,344 $210,111 $2,188,773 $5,755,228 
Accumulated interest9,990 190 12,310 22,490 
Cumulative fair value adjustments(1)
84,503 2,408 88,343 175,254 
Total fair value of loans$3,450,837 $212,709 $2,289,426 $5,952,972 
December 31, 2020
Unpaid principal(1)
$2,774,511 $171,967 $1,780,246 $4,726,724 
Accumulated interest9,472 141 11,558 21,171 
Cumulative fair value adjustments(1)
82,476 7,581 21,116 111,173 
Total fair value of loans$2,866,459 $179,689 $1,812,920 $4,859,068 
_____________________
(1) These items are impacted by charge-offs during the period.
The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented.
Student Loans
Personal Loans
Total
December 31, 2021
Unpaid principal
$1,589 $4,765 $6,354 
Accumulated interest
32 149 181 
Cumulative fair value adjustments
(865)(4,189)(5,054)
Fair value of loans 90 days or more delinquent$756 $725 $1,481 
December 31, 2020
Unpaid principal
$1,046 $4,199 $5,245 
Accumulated interest
37 210 247 
Cumulative fair value adjustments
(442)(3,872)(4,314)
Fair value of loans 90 days or more delinquent
$641 $537 $1,178 
Schedule of Loans Measured at Fair Value
The following table presents the changes in our loans measured at fair value on a recurring basis:
Student Loans
Home Loans
Personal Loans
Total
Fair value as of January 1, 2020$3,185,233 $91,695 $2,111,030 $5,387,958 
Origination of loans
4,928,880 2,183,521 2,580,757 9,693,158 
Principal payments
(883,761)(2,748)(1,015,046)(1,901,555)
Sales of loans
(4,534,286)(2,102,101)(1,531,058)(8,167,445)
Deconsolidation of securitizations
(495,507)— (406,687)(902,194)
Purchases(1)
648,153 2,070 39,975 690,198 
Change in accumulated interest
1,286 21 (2,379)(1,072)
Change in fair value(2)
16,461 7,231 36,328 60,020 
Fair value as of December 31, 2020$2,866,459 $179,689 $1,812,920 $4,859,068 
Origination of loans4,293,526 2,978,222 5,386,934 12,658,682 
Principal payments(892,989)(6,184)(1,054,077)(1,953,250)
Sales of loans(2,854,778)(2,935,038)(4,290,424)(10,080,240)
Purchases(1)
44,850 1,144 405,051 451,045 
Change in accumulated interest518 49 752 1,319 
Change in fair value(2)
(6,749)(5,173)28,270 16,348 
Fair value as of December 31, 2021$3,450,837 $212,709 $2,289,426 $5,952,972 
_____________________
(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the years ended December 31, 2021 and 2020 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $425,302 and $76,044, respectively. Additionally, during the years ended December 31, 2021 and 2020, the Company elected to purchase $17,596 and $606,264, respectively, of previously sold loans. The Company was not required to buy back these loans. The remaining purchases during the years presented related to standard representations and warranties pursuant to our various loan sale agreements.
(2) Changes in fair value of loans are recorded in the consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $4,143, $13,896 and $9,501 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in
the consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.
Residual InvestmentsResidual Interests Classified as Debt
Fair value as of December 31, 2019$262,880 $271,778 
Additions10,708 — 
Change in valuation inputs or other assumptions(1)
9,702 38,216 
Payments(2)
(96,505)(89,978)
Transfers(3)
(47,261)— 
Derecognition upon achieving true sale accounting treatment— (101,718)
Fair value as of December 31, 2020$139,524 $118,298 
Additions49,317 2,170 
Change in valuation inputs or other assumptions(1)
10,603 22,802 
Payments(2)
(78,425)(49,588)
Fair value as of December 31, 2021$121,019 $93,682 
_____________________
(1)For residual investments, the estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(230), $(1,252) and $569 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the residual investments. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
(2)Payments of residual investments included residual investment sales of $4,291 and $8,342 during the years ended December 31, 2021 and 2020, respectively.
(3)The year ended December 31, 2020 includes a transfer from residual investments (Level 3) to asset-backed bonds (Level 2) associated with a repackaged securitization transaction in which we formed a new VIE and, in the process, exchanged our residual interest for an asset-backed bond interest.
The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
IRLCsStudent Loan Commitments
Fair value as of December 31, 2019$1,090 $— 
Revaluation adjustments62,528 — 
Funded loans(1)
(27,321)— 
Unfunded loans(1)
(20,677)— 
Fair value as of December 31, 2020$15,620 $— 
Revaluation adjustments23,211 6,410 
Funded loans(1)
(24,330)(2,384)
Unfunded loans(1)
(10,742)(1,806)
Fair value as of December 31, 2021$3,759 $2,220 
_____________________
(1)For each quarter within the years presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. The amounts presented on a year-to-date basis represent the summation of the per-quarter effects.
The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
Purchase Price Earn-Out
Fair value as of January 1, 2021$— 
Initial recognition(1)
7,165 
Payments (5,040)
Changes in valuation inputs or assumptions
2,147 
Fair value as of December 31, 2021$4,272 
_____________________
(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $286 during the year ended December 31, 2021. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.
v3.22.0.1
Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Consolidated and Nonconsolidated VIEs
The following table presents the assets and liabilities of consolidated VIEs that were included in our consolidated balance sheets. The assets in the below table may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation.
December 31,
20212020
Assets:
Restricted cash and restricted cash equivalents$53,161 $76,973 
Loans808,904 1,468,170 
Total assets$862,065 $1,545,143 
Liabilities:
Accounts payable, accruals and other liabilities$388 $759 
Debt(1)
660,419 1,248,822 
Residual interests classified as debt93,682 118,298 
Total liabilities$754,489 $1,367,879 
_____________________
(1)Debt is presented net of debt issuance costs and debt premiums (discounts).
The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which were included in our consolidated balance sheets.
December 31,
20212020
Personal loans$62,925 $71,115 
Student loans311,763 425,820 
Securitization investments$374,688 $496,935 
v3.22.0.1
Transfers of Financial Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Transfers and Servicing [Abstract]  
Schedule of Loan Securitization Transfers, Whole Loan Sales and Participating Interests
The following table summarizes the loan securitization transfers qualifying for sale accounting treatment for the years indicated. There were no home loan securitization transfers qualifying for sale accounting treatment during any of the years presented.
Year Ended December 31,
202120202019
Student loans
Fair value of consideration received and obligations settled:
Cash$1,187,714 $2,015,357 $4,542,431 
Securitization investments62,783 130,807 239,698 
Deconsolidation of debt(1)
— 458,375 — 
Servicing assets recognized36,948 19,903 42,826 
Total consideration1,287,445 2,624,442 4,824,955 
Aggregate unpaid principal balance and accrued interest of loans sold1,227,379 2,540,052 4,677,471 
Gain from loan sales(1)
$60,066 $84,390 $147,484 
Personal loans
Fair value of consideration received and obligations settled:
Cash$1,050,062 $316,503 $397,962 
Securitization investments55,491 20,961 111,556 
Deconsolidation of debt(1)
— 414,261 1,464,920 
Servicing assets recognized6,003 2,086 11,229 
Total consideration1,111,556 753,811 1,985,667 
Aggregate unpaid principal balance and accrued interest of loans sold1,054,171 708,346 1,906,757 
Gain from loan sales(1)
$57,385 $45,465 $78,910 
_____________________
(1)Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the year because we no longer held a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. See Note 6 for further discussion of deconsolidations. For the year ended December 31, 2020, the gains from sales excluded losses from deconsolidations on student loans and personal loans of $8,601 and $6,098, respectively. For the year ended December 31, 2019, the gains from sales excluded losses from deconsolidations on personal loans of $38,741. Losses on deconsolidations are presented within noninterest income—securitizations in the consolidated statements of operations and comprehensive income (loss).
The following table summarizes the whole loan sales for the years indicated:
Year Ended December 31,
202120202019
Student loans
Fair value of consideration received:
Cash$1,676,892 $2,596,719 $1,399,921 
Servicing assets recognized15,526 25,734 21,145 
Repurchase liabilities recognized(300)(510)(314)
Total consideration1,692,118 2,621,943 1,420,752 
Aggregate unpaid principal balance and accrued interest of loans sold1,635,280 2,503,821 1,389,986 
Gain from loan sales$56,838 $118,122 $30,766 
Home loans
Fair value of consideration received:
Cash$2,989,813 $2,173,709 $733,860 
Servicing assets recognized31,294 20,440 5,724 
Repurchase liabilities recognized(3,288)(3,034)(1,720)
Total consideration3,017,819 2,191,115 737,864 
Aggregate unpaid principal balance and accrued interest of loans sold2,935,343 2,101,895 726,379 
Gain from loan sales$82,476 $89,220 $11,485 
Personal loans
Fair value of consideration received:
Cash$3,373,655 $1,285,689 $2,316,771 
Servicing assets recognized21,811 8,429 31,138 
Repurchase liabilities recognized(8,168)(3,535)(2,948)
Total consideration received3,387,298 1,290,583 2,344,961 
Aggregate unpaid principal balance and accrued interest of loans sold3,253,645 1,238,474 2,257,223 
Gain from loan sales$133,653 $52,109 $87,738 
Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet
The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:
Student LoansHome LoansPersonal LoansTotal
December 31, 2021
Loans in repayment$9,852,957 $4,575,001 $5,138,299 $19,566,257 
Loans in-school/grace/deferment37,949 — — 37,949 
Loans in forbearance44,833 40,353 1,120 86,306 
Loans in delinquency112,885 7,465 75,275 195,625 
Total loans serviced$10,048,624 $4,622,819 $5,214,694 $19,886,137 
December 31, 2020
Loans in repayment$12,059,702 $2,629,015 $4,796,404 $19,485,121 
Loans in-school/grace/deferment26,158 — — 26,158 
Loans in forbearance275,659 46,357 35,677 357,693 
Loans in delinquency91,424 8,493 110,640 210,557 
Total loans serviced$12,452,943 $2,683,865 $4,942,721 $20,079,529 
The following table presents additional information about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement during the years indicated:
Year Ended December 31,
202120202019
Student loans
Servicing fees collected
$46,657 $50,794 $47,038 
Charge-offs, net of recoveries(1)
$24,675 $16,999 $27,740 
Home Loans
Servicing fees collected
8,749 4,499 2,635 
Charge-offs, net of recoveries
— — — 
Personal Loans
Servicing fees collected
34,421 45,574 31,268 
Charge-offs, net of recoveries(1)
102,276 197,927 233,628 
Total
Servicing fees collected
$89,827 $100,867 $80,941 
Charge-offs, net of recoveries(1)
$126,951 $214,926 $261,368 
_____________________
(1)Student loan and personal loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed. For both loan products, charge-off sales were meaningfully higher in 2020 relative to 2021.
v3.22.0.1
Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Allowance for Credit Losses, Accounts Receivable
The following table summarizes the activity in the balance of allowance for credit losses on accounts receivable and credit card loans during the years indicated:
Accounts Receivable(1)
Credit Card Loans(2)
Balance at January 1, 2020$— $— 
Provision for credit losses(3)
766 219 
Write-offs charged against the allowance
(204)— 
Balance at December 31, 2020
$562 $219 
Provision for credit losses(3)
3,043 7,573 
Write-offs charged against the allowance(4)
(1,313)(755)
Balance at December 31, 2021
$2,292 $7,037 
_____________________
(1)Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. We established an allowance for credit losses on accounts receivable subsequent to our acquisition of Galileo in the second quarter of 2020. Certain of our historical accounts receivable balances did not have any write-offs.
(2)Credit card loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the consolidated balance sheets. We launched the SoFi Credit Card in the third quarter of 2020, which was expanded to a broader market in the fourth quarter of 2020.
(3)Provision for credit losses on accounts receivable and credit card loans are presented within noninterest expense—general and administrative and noninterest expense—provision for credit losses, respectively, in the consolidated statements of operations and comprehensive income (loss). There were no recoveries of credit card losses during the years ended December 31, 2021 and 2020.
(4)The increase in accounts receivable write-offs charged against the allowance during the year ended December 31, 2021 was primarily attributable to three accounts that were deemed uncollectible.
Schedule of Allowance for Credit Losses, Credit Card Loans
The following table summarizes the activity in the balance of allowance for credit losses on accounts receivable and credit card loans during the years indicated:
Accounts Receivable(1)
Credit Card Loans(2)
Balance at January 1, 2020$— $— 
Provision for credit losses(3)
766 219 
Write-offs charged against the allowance
(204)— 
Balance at December 31, 2020
$562 $219 
Provision for credit losses(3)
3,043 7,573 
Write-offs charged against the allowance(4)
(1,313)(755)
Balance at December 31, 2021
$2,292 $7,037 
_____________________
(1)Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. We established an allowance for credit losses on accounts receivable subsequent to our acquisition of Galileo in the second quarter of 2020. Certain of our historical accounts receivable balances did not have any write-offs.
(2)Credit card loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the consolidated balance sheets. We launched the SoFi Credit Card in the third quarter of 2020, which was expanded to a broader market in the fourth quarter of 2020.
(3)Provision for credit losses on accounts receivable and credit card loans are presented within noninterest expense—general and administrative and noninterest expense—provision for credit losses, respectively, in the consolidated statements of operations and comprehensive income (loss). There were no recoveries of credit card losses during the years ended December 31, 2021 and 2020.
(4)The increase in accounts receivable write-offs charged against the allowance during the year ended December 31, 2021 was primarily attributable to three accounts that were deemed uncollectible.
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis
The following tables summarize, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities (i) measured at fair value on a recurring basis, (ii) measured at fair value on a nonrecurring basis, or (iii) disclosed but not carried at fair value in the consolidated balance sheets as of the dates presented.
December 31, 2021
Fair Value
Carrying ValueLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$494,711 $494,711 $— $— $494,711 
Restricted cash and restricted cash equivalents(1)
273,726 273,726 — — 273,726 
Investments in AFS debt securities(2)(4)
194,907 129,835 65,072 — 194,907 
Student loans(2)
3,450,837 — — 3,450,837 3,450,837 
Home loans(2)
212,709 — — 212,709 212,709 
Personal loans(2)
2,289,426 — — 2,289,426 2,289,426 
Credit card loans(1)
115,912 — — 118,412 118,412 
Servicing rights(2)
168,259 — — 168,259 168,259 
Asset-backed bonds(2)(5)
253,669 — 253,669 — 253,669 
Residual investments(2)(5)
121,019 — — 121,019 121,019 
Non-securitization investments – ETFs(2)(6)
1,486 1,486 — — 1,486 
Non-securitization investments – other(3)
6,054 — — 6,054 6,054 
Third party warrants(2)(7)
1,369 — — 1,369 1,369 
Derivative assets(2)(8)(9)
5,444 — 5,444 — 5,444 
Purchase price earn-out(2)(10)
4,272 — — 4,272 4,272 
Interest rate lock commitments(2)(11)
3,759 — — 3,759 3,759 
Student loan commitments(2)(11)
2,220 — — 2,220 2,220 
Interest rate caps(2)(9)
493 — 493 — 493 
Total assets$7,600,272 $899,758 $324,678 $6,378,336 $7,602,772 
Liabilities
Debt(1)
$3,947,983 $1,240,560 $2,807,253 $— $4,047,813 
Residual interests classified as debt(2)
93,682 — — 93,682 93,682 
Derivative liabilities(2)(8)(9)
864 196 668 — 864 
Total liabilities$4,042,529 $1,240,756 $2,807,921 $93,682 $4,142,359 
December 31, 2020
Fair Value
Carrying ValueLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$872,582 $872,582 $— $— $872,582 
Restricted cash and restricted cash equivalents(1)
450,846 450,846 — — 450,846 
Student loans(2)
2,866,459 — — 2,866,459 2,866,459 
Home loans(2)
179,689 — — 179,689 179,689 
Personal loans(2)
1,812,920 — — 1,812,920 1,812,920 
Credit card loans(1)
3,723 — — 3,723 3,723 
Commercial loan(1)
16,512 — — 16,512 16,512 
Servicing rights(2)
149,597 — — 149,597 149,597 
Asset-backed bonds(2)(5)
357,411 — 357,411 — 357,411 
Residual investments(2)(5)
139,524 — — 139,524 139,524 
Non-securitization investments – ETFs(2)(6)
6,850 6,850 — — 6,850 
Non-securitization investments – other(3)
1,147 — — 1,147 1,147 
Interest rate lock commitments(2)(11)
15,620 — — 15,620 15,620 
Total assets$6,872,880 $1,330,278 $357,411 $5,185,191 $6,872,880 
Liabilities
Debt(1)
$4,798,925 $— $4,851,658 $— $4,851,658 
Residual interests classified as debt(2)
118,298 — — 118,298 118,298 
Warrant liabilities – Series H warrants(2)(12)
39,959 — — 39,959 39,959 
Derivative liabilities(2)(8)(9)
2,955 2,008 947 — 2,955 
ETF short positions(2)(6)
5,241 5,241 — — 5,241 
Total liabilities$4,965,378 $7,249 $4,852,605 $158,257 $5,018,111 
_____________________
(1)Disclosed but not carried at fair value. The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes issued in October 2021 was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt, revolving credit facility debt, financing arrangements assumed in the Galileo acquisition and credit card loans were based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. The fair value of our single commercial loan as of December 31, 2020 was also determined to approximate its carrying value, as the loan was issued in the fourth quarter of 2020, was short-term in nature, and was repaid in full in January 2021.
(2)Measured at fair value on a recurring basis.
(3)Measured at fair value on a nonrecurring basis.
(4)Investments in AFS debt securities as of December 31, 2021 were classified as Level 1 or Level 2. The Level 1 investments utilize quoted prices in actively traded markets. The Level 2 investments rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 1 and Note 4 for additional information.
(5)These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. As we do not provide financial support beyond our initial equity investment, our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to the investment amount. See Note 6 for additional information.
(6)ETFs and ETF short positions classified as Level 1 are based on utilizing quoted prices in actively traded markets. The short positions serve as an economic hedge to our non-securitization investments in ETFs.
(7)Third party warrants were recorded during the fourth quarter of 2021, and there were no subsequent adjustments from their initial value. The key unobservable assumption used in the fair value measurement of the third party warrants is the price of the stock underlying the warrants. The fair value is measured as the difference between the stock price and the strike price of the warrants. As the strike price is insignificant, we concluded that the impact of time value on the fair value measure was immaterial.
(8)For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. See Note 1 for additional information.
(9)Derivative liabilities classified as Level 1 are based on broker quotes in active markets and represent economic hedges of loan fair values. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on
observable inputs other than quoted prices. Interest rate swaps are valued using the three-month LIBOR swap yield curve and interest rate caps are valued using a SOFR rate curve and the implied volatilities suggested by the SOFR rate curve, which are all observable inputs from active markets.
(10)The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs, such as conditional prepayment rates, annual default rates and discount rates.
(11)IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date.
(12)In conjunction with the Closing of the Business Combination, we measured the final fair value of the Series H warrants and subsequently reclassified them into permanent equity. Therefore, we did not measure the Series H warrants at fair value on an ongoing basis, subsequent to May 28, 2021. See Note 11 for additional information on our historical Series H warrant liabilities, including inputs to the valuation.
Schedule of Valuation Inputs and Assumptions
The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Conditional prepayment rate
16.5% – 26.3%
19.2%
15.8% – 33.3%
18.4%
Annual default rate
0.2% – 4.2%
0.4%
0.2% – 4.9%
0.4%
Discount rate
1.9% – 7.1%
2.9%
1.1% – 7.1%
3.3%
Home loans
Conditional prepayment rate
4.8% – 16.4%
12.4%
4.4% – 17.6%
14.9%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 4.9%
0.1%
Discount rate
2.5% – 13.0%
2.6%
1.3% – 10.0%
1.6%
Personal loans
Conditional prepayment rate
18.4% – 37.7%
20.5%
14.5% – 23.2%
18.1%
Annual default rate
4.2% – 30.0%
4.4%
3.3% – 33.8%
4.2%
Discount rate
3.9% – 7.0%
4.0%
5.0% – 10.7%
6.0%
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Market servicing costs
0.1% – 0.2%
0.1%
0.1% – 0.2%
0.1%
Conditional prepayment rate
15.2% – 25.6%
20.4%
13.8%  – 24.7%
18.7%
Annual default rate
0.2% – 4.3%
0.4%
0.2% – 4.8%
0.4%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
Home loans
Market servicing costs
0.1% – 0.1%
0.1%
0.1% – 0.1%
0.1%
Conditional prepayment rate
10.0% – 16.4%
11.5%
13.9% – 20.3%
16.5%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 0.1%
0.1%
Discount rate
7.5% – 7.5%
7.5%
10.0% – 10.0%
10.0%
Personal loans
Market servicing costs
0.2% – 1.1%
0.2%
0.2% – 0.7%
0.3%
Conditional prepayment rate
22.5% – 41.4%
26.0%
16.2% – 26.1%
19.1%
Annual default rate
3.2% – 7.0%
4.4%
3.1% – 7.5%
5.5%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:
December 31,
20212020
Discount rate (range)
0.6% – 3.7%
0.8% – 4.0%
Conditional prepayment rate (range)
19.5% – 32.2%
18.8% – 21.9%
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Residual investments
Conditional prepayment rate
19.5% – 33.6%
23.0%
18.8%  – 22.3%
20.2%
Annual default rate
0.3% – 5.7%
0.9%
0.3% – 6.2%
0.7%
Discount rate
2.6% – 10.5%
4.4%
3.0% – 18.5%
6.2%
Residual interests classified as debt
Conditional prepayment rate
20.0% – 41.8%
31.5%
19.5% – 24.8%
21.4%
Annual default rate
0.5% – 5.6%
3.2%
0.4% – 6.4%
3.1%
Discount rate
5.0% – 9.5%
5.7%
8.5% – 18.0%
10.8%
The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
IRLCs
Loan funding probability(1)
75.0% – 75.0%
75.0%
54.5% – 54.5%
54.5%
Student loan commitments
Loan funding probability(1)
95.0% – 95.0%
95.0%n/an/a
_____________________
(1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $53,189 as of December 31, 2021. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs.
Our key valuation inputs were as follows as of the date indicated:
December 31, 2021
Purchase Price Earn-OutRangeWeighted Average
Conditional prepayment rate
22.9% – 22.9%
22.9%
Annual default rate
30.0% – 30.0%
30.0%
Discount rate
25.0% – 25.0%
25.0%
The key inputs into our Black-Scholes Model valuation as of December 31, 2020 and as of May 28, 2021, the final measurement date, were as follows:
InputMay 28, 2021December 31, 2020
Risk-free interest rate0.3 %0.2 %
Expected term (years)2.93.4
Expected volatility33.9 %32.6 %
Dividend yield— %— %
Exercise price$8.86 $8.86 
Fair value of Series H preferred stock$21.89 $9.74 
The following table summarizes the inputs used for estimating the fair values of PSUs granted during the year indicated:
Year Ended
InputDecember 31, 2021
Risk-free interest rate
0.8% – 0.8%
Expected volatility
34.9% – 35.9%
Fair value of common stock
$16.99 – $23.21
Dividend yield
0% – 0%
Schedule of Sensitivity Analysis for Servicing Rights
The following table presents the estimated decrease to the fair value of our servicing rights as of the dates indicated if the key assumptions had each of the below adverse changes:
December 31,
20212020
Market servicing costs
2.5 basis points increase$(10,822)$(10,472)
5.0 basis points increase(21,644)(20,944)
Conditional prepayment rate
10% increase$(6,260)$(5,430)
20% increase(12,031)(10,230)
Annual default rate
10% increase$(205)$(336)
20% increase(408)(681)
Discount rate
100 basis points increase$(3,782)$(2,986)
200 basis points increase(7,349)(5,820)
Schedule of Servicing Rights at Fair Value
The following table presents the changes in the Company’s servicing rights, which are measured at fair value on a recurring basis:
Student LoansHome LoansPersonal LoansTotal
Fair value as of December 31, 2019$138,582 $13,181 $49,855 $201,618 
Recognition of servicing from transfers of financial assets45,637 20,440 10,515 76,592 
Derecognition of servicing via loan purchases(12,924)— (934)(13,858)
Change in valuation inputs or other assumptions(20,168)(5,056)7,765 (17,459)
Realization of expected cash flows and other changes(50,490)(4,651)(42,155)(97,296)
Fair value as of December 31, 2020$100,637 $23,914 $25,046 $149,597 
Recognition of servicing from transfers of financial assets52,474 31,294 27,814 111,582 
Servicing rights assumed from third parties— — 370 370 
Derecognition of servicing via loan purchases(392)— (660)(1,052)
Change in valuation inputs or other assumptions(16,197)4,300 9,246 (2,651)
Realization of expected cash flows and other changes(46,519)(8,975)(34,093)(89,587)
Fair value as of December 31, 2021$90,003 $50,533 $27,723 $168,259 
Schedule of Changes in Residual Investments, Residual Interests and Interest Rate Lock Commitments
The following table presents the changes in our loans measured at fair value on a recurring basis:
Student Loans
Home Loans
Personal Loans
Total
Fair value as of January 1, 2020$3,185,233 $91,695 $2,111,030 $5,387,958 
Origination of loans
4,928,880 2,183,521 2,580,757 9,693,158 
Principal payments
(883,761)(2,748)(1,015,046)(1,901,555)
Sales of loans
(4,534,286)(2,102,101)(1,531,058)(8,167,445)
Deconsolidation of securitizations
(495,507)— (406,687)(902,194)
Purchases(1)
648,153 2,070 39,975 690,198 
Change in accumulated interest
1,286 21 (2,379)(1,072)
Change in fair value(2)
16,461 7,231 36,328 60,020 
Fair value as of December 31, 2020$2,866,459 $179,689 $1,812,920 $4,859,068 
Origination of loans4,293,526 2,978,222 5,386,934 12,658,682 
Principal payments(892,989)(6,184)(1,054,077)(1,953,250)
Sales of loans(2,854,778)(2,935,038)(4,290,424)(10,080,240)
Purchases(1)
44,850 1,144 405,051 451,045 
Change in accumulated interest518 49 752 1,319 
Change in fair value(2)
(6,749)(5,173)28,270 16,348 
Fair value as of December 31, 2021$3,450,837 $212,709 $2,289,426 $5,952,972 
_____________________
(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the years ended December 31, 2021 and 2020 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $425,302 and $76,044, respectively. Additionally, during the years ended December 31, 2021 and 2020, the Company elected to purchase $17,596 and $606,264, respectively, of previously sold loans. The Company was not required to buy back these loans. The remaining purchases during the years presented related to standard representations and warranties pursuant to our various loan sale agreements.
(2) Changes in fair value of loans are recorded in the consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $4,143, $13,896 and $9,501 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in
the consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.
Residual InvestmentsResidual Interests Classified as Debt
Fair value as of December 31, 2019$262,880 $271,778 
Additions10,708 — 
Change in valuation inputs or other assumptions(1)
9,702 38,216 
Payments(2)
(96,505)(89,978)
Transfers(3)
(47,261)— 
Derecognition upon achieving true sale accounting treatment— (101,718)
Fair value as of December 31, 2020$139,524 $118,298 
Additions49,317 2,170 
Change in valuation inputs or other assumptions(1)
10,603 22,802 
Payments(2)
(78,425)(49,588)
Fair value as of December 31, 2021$121,019 $93,682 
_____________________
(1)For residual investments, the estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(230), $(1,252) and $569 during the years ended December 31, 2021, 2020 and 2019, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the residual investments. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.
(2)Payments of residual investments included residual investment sales of $4,291 and $8,342 during the years ended December 31, 2021 and 2020, respectively.
(3)The year ended December 31, 2020 includes a transfer from residual investments (Level 3) to asset-backed bonds (Level 2) associated with a repackaged securitization transaction in which we formed a new VIE and, in the process, exchanged our residual interest for an asset-backed bond interest.
The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the consolidated statements of operations and comprehensive income (loss).
IRLCsStudent Loan Commitments
Fair value as of December 31, 2019$1,090 $— 
Revaluation adjustments62,528 — 
Funded loans(1)
(27,321)— 
Unfunded loans(1)
(20,677)— 
Fair value as of December 31, 2020$15,620 $— 
Revaluation adjustments23,211 6,410 
Funded loans(1)
(24,330)(2,384)
Unfunded loans(1)
(10,742)(1,806)
Fair value as of December 31, 2021$3,759 $2,220 
_____________________
(1)For each quarter within the years presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. The amounts presented on a year-to-date basis represent the summation of the per-quarter effects.
The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
Purchase Price Earn-Out
Fair value as of January 1, 2021$— 
Initial recognition(1)
7,165 
Payments (5,040)
Changes in valuation inputs or assumptions
2,147 
Fair value as of December 31, 2021$4,272 
_____________________
(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $286 during the year ended December 31, 2021. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.
v3.22.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Debt
The following table summarizes the Company’s principal outstanding debt, unamortized debt discounts/premiums and unamortized debt issuance costs as of the dates indicated:
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Student Loan Warehouse Facilities
SoFi Funding I$— 
1ML + 125 bps
April 2022$200,000 $— $374,575 
SoFi Funding III(6)
4,440 
PR – 134 bps
September 202475,000 3,930 30,170 
SoFi Funding V(7)
— 
1ML + 135 bps
May 2023350,000 — — 
SoFi Funding VI60,614 
3ML + 125 bps
March 2024600,000 56,709 432,437 
SoFi Funding VII313,726 
SOFR + 85 bps
 September 2024500,000 284,475 276,910 
SoFi Funding VIII269,254 
1ML + 90 bps
May 2022300,000 245,723 221,342 
SoFi Funding IX(8)
10,417 
SOFR+ 210 bps and
CP + 87.5 bps
 May 2025500,000 9,816 70,780 
SoFi Funding X(9)
33,423 
CP + 125 bps
 April 2024400,000 29,647 44,136 
SoFi Funding XI(10)
— 
CP + 115 bps
November 2023500,000 — 87,404 
SoFi Funding XII(11)
25,087 
CP + 115 bps
November 2024200,000 20,267 — 
SoFi Funding XIII481,731 
SOFR + 55 bps
April 2024450,000 424,348 — 
Total, before unamortized debt issuance costs$1,198,692 $4,075,000 $1,074,915 $1,537,754 
Unamortized debt issuance costs$(7,540)$(7,940)
Weighted average effective interest rate1.45 %2.29 %
Personal Loan Warehouse Facilities
SoFi Funding PL I(12)
$14,516 
CP + 137.5 bps
September 2023$250,000 $11,911 $— 
SoFi Funding PL II— 
3ML + 225 bps
July 2023400,000 — 137,420 
SoFi Funding PL III— 
1ML + 175 bps
May 2023250,000 — 2,793 
SoFi Funding PL IV(13)
— 
CP + 170 bps
November 2023500,000 — 132,416 
SoFi Funding PL VI(14)
— 
CP + 170 bps
September 202450,000 — 107,595 
SoFi Funding PL VII88,976 
1ML + 115 bps
June 2022250,000 71,572 15,610 
SoFi Funding PL X— 
1ML + 142.5 bps
February 2023200,000 — 3,004 
SoFi Funding PL XI— 
1ML + 170 bps
January 2022200,000 — 112,478 
SoFi Funding PL XII— 
1ML + (225-315 bps)
June 2021— — 127,724 
SoFi Funding PL XIII— 
1ML + 175 bps
January 2030300,000 — 219,362 
SoFi Funding PL XIV(15)
168,624 
1ML + 90 bps
October 2024300,000 144,662 — 
Total, before unamortized debt issuance costs$272,116 $2,700,000 $228,145 $858,402 
Unamortized debt issuance costs$(3,898)$(6,692)
Weighted average effective interest rate2.08 %3.63 %
Home Loan Warehouse Facilities
Mortgage Warehouse VI$— 
SOFR + 200 bps
October 2022$1,000 $— $— 
Total, before unamortized debt issuance costs$— $1,000 $— $— 
Weighted average effective interest rate— %— %
Credit Card Warehouse Facilities
SoFi Funding CC I LLC(16)
$14,471 
CP + 175 bps
October 2022$100,000 $11,810 $— 
Total, before unamortized debt issuance costs$14,471 $100,000 $11,810 $— 
Unamortized debt issuance costs
$(312)$— 
Weighted average effective interest rate6.39 %— %
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Risk Retention Warehouse Facilities(17)
SoFi RR Funding I$28,407 
3ML + 200 bps
January 2024$100,000 $22,608 $54,304 
SoFi RR Repo84,240 
3ML + 185 bps
June 2023192,141 69,843 75,863 
SoFi C RR Repo— 
3ML + (180-185 bps)
December 2021— 42,757 
SoFi RR Funding II109,204 
1ML + 125 bps
November 202498,031 160,199 
SoFi RR Funding III43,334 
1ML + 125 bps
November 202439,158 60,786 
SoFi RR Funding IV(7)
81,797 
1ML + 150 bps
October 2027100,000 66,555 37,334 
SoFi RR Funding V54,791 
298 bps
December 202529,453 — 
Total, before unamortized debt issuance costs$401,773 $325,648 $431,243 
Unamortized debt issuance costs$(2,086)$(2,052)
Weighted average effective interest rate2.00 %2.24 %
Revolving Credit Facility
SoFi Corporate Revolver(18)(19)
n/a
1ML + 100 bps
September 2023$560,000 $486,000 $486,000 
Total, before unamortized debt issuance costs$560,000 $486,000 $486,000 
Unamortized debt issuance costs$(626)$(987)
Weighted average effective interest rate1.18 %1.26 %
Convertible senior notes(20)
n/a0.00%October 2026$1,200,000 $— 
Total, before unamortized debt issuance costs and discount$1,200,000 $— 
Unamortized debt issuance costs$(1,634)$— 
Unamortized discount(22,858)— 
Weighted average effective interest rate0.43 %— %
Seller note(21)
n/a
1000 bps
February 2021$— $250,000 
Total$— $250,000 
Weighted average effective interest rate10.00 %10.00 %
Other financing – various notes(21)
n/a
331 – 547 bps
July 2021$— $4,375 
Total$— $4,375 
Weighted average effective interest rate3.58 %3.64 %
Student Loan Securitizations
SoFi PLP 2016-B LLC$48,821 
1ML + (120-380 bps)
April 2037$43,186 $69,448 
SoFi PLP 2016-C LLC55,662 
1ML + (110-335 bps)
May 203749,685 81,115 
SoFi PLP 2016-D LLC69,636 
1ML + (95-323 bps)
January 203961,760 93,942 
SoFi PLP 2016-E LLC81,975 
1ML + (85-443 bps)
October 204174,242 117,800 
SoFi PLP 2017-A LLC102,677 
1ML + (70-443 bps)
March 204092,972 146,064 
SoFi PLP 2017-B LLC86,686 
274 – 444 bps
May 204078,811 129,873 
SoFi PLP 2017-C LLC113,022 
1ML + (60-421 bps)
July 2040102,814 161,897 
Total, before unamortized debt issuance costs and discount$558,479 $503,470 $800,139 
Unamortized debt issuance costs$(3,851)$(5,958)
Unamortized discount(1,094)(1,654)
Weighted average effective interest rate3.30 %3.22 %
Outstanding as of
Borrowing Description
Collateral Balances(1)
Interest Rate(2)
Termination/
Maturity(3)
Total Capacity(4)
December 31, 2021(5)
December 31, 2020
Personal Loan Securitizations
SoFi CLP 2016-1 LLC$— 
326 bps
December 2021$— $36,546 
SoFi CLP 2016-2 LLC— 
477 bps
December 2021— 37,973 
SoFi CLP 2016-3 LLC— 
449 bps
September 2021— 30,780 
SoFi CLP 2018-3 LLC82,550 
402 – 467 bps
August 202776,535 163,784 
SoFi CLP 2018-4 LLC93,564 
417 – 476 bps
November 202786,835 184,831 
SoFi CLP 2018-3 Repack LLC— 
200 bps
March 2021— 2,457 
SoFi CLP 2018-4 Repack LLC— 
200 bps
June 2021— 5,853 
Total, before unamortized debt issuance costs, premiums and discount$176,114 $163,370 $462,224 
Unamortized debt issuance costs$(1,683)$(3,057)
Unamortized premium (discount)207 (2,872)
Weighted average effective interest rate4.58 %4.47 %
Total, before unamortized debt issuance costs, premiums and discounts
$3,993,358 $4,830,137 
Less: unamortized debt issuance costs, premiums and discounts(45,375)(31,212)
Total reported debt$3,947,983 $4,798,925 
_____________________
(1)As of December 31, 2021, represents unpaid principal balances, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances as presented may vary period to period due to the timing of the next scheduled payment to the warehouse facility.
(2)Unused commitment fees ranging from 0 to 75 basis points (“bps”) on our various warehouse facilities are recognized as noninterest expense—general and administrative in our consolidated statements of operations and comprehensive income (loss). “ML” stands for “Month LIBOR”. As of December 31, 2021, 1ML and 3ML was 0.10% and 0.21%, respectively. As of December 31, 2020, 1ML and 3ML was 0.14% and 0.24%, respectively. “SOFR” stands for “Secured Overnight Financing Rate”. As of December 31, 2021, SOFR was 0.05%. “PR” stands for “Prime Rate”. As of December 31, 2021 and 2020, PR was 3.25% and 3.25%, respectively.
(3)For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made.
(4)Represents total capacity as of December 31, 2021.
(5)There was a debt discount of $24,000 associated with the Convertible Notes discussed below and a debt premium of $335 issued during the year ended December 31, 2021. We paid $1,600 during 2021 related to debt issuance costs accrued in 2020.
(6)Warehouse facility has a prime rate floor of 309 bps.
(7)Warehouse facilities have a 1ML floor of 25 bps.    
(8)Warehouse facility incurs different interest rates on its two types of asset classes. One such class incurs interest based on a commercial paper (“CP”) rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.19% and 0.25%, respectively.
(9)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.24% and 0.28%, respectively.
(10)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.19% and 0.25%, respectively.
(11)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.19%. Under certain conditions, warehouse facility could incur an interest rate spread of 215 bps.
(12)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.18%. As of December 31, 2020, this facility incurred interest based on 1ML.
(13)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021 and 2020, the CP rate for this facility was 0.16% and 0.25%, respectively.
(14)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.16%. As of December 31, 2020, this facility incurred interest based on 3ML.
(15)Warehouse facility expected to be subject to SOFR + 11.5 bps upon benchmark replacement.
(16)Warehouse facility incurs interest at a spread (as indicated in the table) plus the lower of (a) 3ML plus 35 bps or (b) the CP rate for this facility, which is determined by the facility lender. As of December 31, 2021, the CP rate for this facility was 0.24%.
(17)Financing was obtained for both asset-backed bonds and residual investments in various personal loan and student loan securitizations, and the underlying collateral are the underlying asset-backed bonds and residual investments. We only state capacity amounts in this table for risk retention facilities wherein we can pledge additional asset-backed bonds and residual investments as of December 31, 2021.
(18)As of December 31, 2021, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 16 for more details.
(19)Interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on PR.
(20)In the fourth quarter of 2021, we issued and sold convertible senior notes. See related section below for additional information.
(21)Part of our consideration to acquire Galileo was in the form of a seller note financing arrangement, which we paid off in February 2021. See Note 2 for additional information. We also assumed certain other financing arrangements resulting from our acquisition of Galileo, which we paid off during the third quarter of 2021.
Schedule of Maturities of Borrowings
As of December 31, 2021, future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows:
2022$— 
2023486,000 
2024— 
2025— 
20261,200,000 
Thereafter— 
Total$1,686,000 
v3.22.0.1
Temporary Equity (Tables)
 12 Months Ended
Dec. 31, 2021
Temporary Equity Disclosure [Abstract]  
Schedule of Valuation Inputs for Warrant Liability
The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Conditional prepayment rate
16.5% – 26.3%
19.2%
15.8% – 33.3%
18.4%
Annual default rate
0.2% – 4.2%
0.4%
0.2% – 4.9%
0.4%
Discount rate
1.9% – 7.1%
2.9%
1.1% – 7.1%
3.3%
Home loans
Conditional prepayment rate
4.8% – 16.4%
12.4%
4.4% – 17.6%
14.9%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 4.9%
0.1%
Discount rate
2.5% – 13.0%
2.6%
1.3% – 10.0%
1.6%
Personal loans
Conditional prepayment rate
18.4% – 37.7%
20.5%
14.5% – 23.2%
18.1%
Annual default rate
4.2% – 30.0%
4.4%
3.3% – 33.8%
4.2%
Discount rate
3.9% – 7.0%
4.0%
5.0% – 10.7%
6.0%
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Market servicing costs
0.1% – 0.2%
0.1%
0.1% – 0.2%
0.1%
Conditional prepayment rate
15.2% – 25.6%
20.4%
13.8%  – 24.7%
18.7%
Annual default rate
0.2% – 4.3%
0.4%
0.2% – 4.8%
0.4%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
Home loans
Market servicing costs
0.1% – 0.1%
0.1%
0.1% – 0.1%
0.1%
Conditional prepayment rate
10.0% – 16.4%
11.5%
13.9% – 20.3%
16.5%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 0.1%
0.1%
Discount rate
7.5% – 7.5%
7.5%
10.0% – 10.0%
10.0%
Personal loans
Market servicing costs
0.2% – 1.1%
0.2%
0.2% – 0.7%
0.3%
Conditional prepayment rate
22.5% – 41.4%
26.0%
16.2% – 26.1%
19.1%
Annual default rate
3.2% – 7.0%
4.4%
3.1% – 7.5%
5.5%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:
December 31,
20212020
Discount rate (range)
0.6% – 3.7%
0.8% – 4.0%
Conditional prepayment rate (range)
19.5% – 32.2%
18.8% – 21.9%
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Residual investments
Conditional prepayment rate
19.5% – 33.6%
23.0%
18.8%  – 22.3%
20.2%
Annual default rate
0.3% – 5.7%
0.9%
0.3% – 6.2%
0.7%
Discount rate
2.6% – 10.5%
4.4%
3.0% – 18.5%
6.2%
Residual interests classified as debt
Conditional prepayment rate
20.0% – 41.8%
31.5%
19.5% – 24.8%
21.4%
Annual default rate
0.5% – 5.6%
3.2%
0.4% – 6.4%
3.1%
Discount rate
5.0% – 9.5%
5.7%
8.5% – 18.0%
10.8%
The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
IRLCs
Loan funding probability(1)
75.0% – 75.0%
75.0%
54.5% – 54.5%
54.5%
Student loan commitments
Loan funding probability(1)
95.0% – 95.0%
95.0%n/an/a
_____________________
(1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $53,189 as of December 31, 2021. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs.
Our key valuation inputs were as follows as of the date indicated:
December 31, 2021
Purchase Price Earn-OutRangeWeighted Average
Conditional prepayment rate
22.9% – 22.9%
22.9%
Annual default rate
30.0% – 30.0%
30.0%
Discount rate
25.0% – 25.0%
25.0%
The key inputs into our Black-Scholes Model valuation as of December 31, 2020 and as of May 28, 2021, the final measurement date, were as follows:
InputMay 28, 2021December 31, 2020
Risk-free interest rate0.3 %0.2 %
Expected term (years)2.93.4
Expected volatility33.9 %32.6 %
Dividend yield— %— %
Exercise price$8.86 $8.86 
Fair value of Series H preferred stock$21.89 $9.74 
The following table summarizes the inputs used for estimating the fair values of PSUs granted during the year indicated:
Year Ended
InputDecember 31, 2021
Risk-free interest rate
0.8% – 0.8%
Expected volatility
34.9% – 35.9%
Fair value of common stock
$16.99 – $23.21
Dividend yield
0% – 0%
Schedule of Changes in Fair Value of Warrant Liabilities
The following table presents the changes in the fair value of the Series H warrant liabilities during the periods prior to the Closing of the Business Combination.
Warrant Liabilities
Fair value as of January 1, 2020$19,434 
Change in valuation inputs or other assumptions(1)
20,525 
Fair value as of December 31, 2020$39,959 
Change in valuation inputs or other assumptions(1)
121,816 
Reclassification to permanent equity in conjunction with the Business Combination(2)
(161,775)
Fair value as of December 31, 2021$— 
_____________________
(1)Changes in valuation inputs or other assumptions are recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss).
(2)Upon the Closing of the Business Combination, Social Finance Series H warrants were converted into SoFi Technologies common stock warrants and reclassified to permanent equity, as the warrants no longer had features requiring liability based accounting and, therefore, represented a non-cash activity.
v3.22.0.1
Permanent Equity (Tables)
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Schedule of Common Stock, Reserved for Future Issuance
The Company reserved the following common stock for future issuance as of the dates indicated:
December 31,
20212020
Outstanding stock options, RSUs and PSUs92,829,067 74,549,561 
Outstanding common stock warrants12,170,990 — 
Conversion of Convertible Notes(1)
53,538,000 — 
Possible future issuance under stock plans32,470,481 33,422,273 
Conversion of outstanding redeemable preferred stock— 465,916,522 
Unissued redeemable preferred stock reserved for issued warrants— 12,170,990 
Unissued redeemable preferred stock— 86,925,094 
Contingent common stock— 320,649 
Total common stock reserved for future issuance191,008,538 673,305,089 
_____________________
(1)As of December 31, 2021, represented the number of common stock issuable upon conversion of all Convertible Notes at the conversion rate in effect at the balance sheet date, in accordance with ASU 2020-06. See Note 1 and Note 10 for additional information.
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive income (loss) for the years indicated.
AFS Debt SecuritiesForeign Currency Translation AdjustmentsTotal
Year Ended December 31, 2021
AOCI, beginning balance$— $(166)$(166)
Other comprehensive income (loss) before reclassifications(1)
(1,459)46 (1,413)
Amounts reclassified from AOCI into earnings108 — 108 
Net current-period other comprehensive income (loss)(2)
(1,351)46 (1,305)
AOCI, ending balance$(1,351)$(120)$(1,471)
Year Ended December 31, 2020
AOCI, beginning balance$— $(21)$(21)
Other comprehensive loss before reclassifications(1)
— (145)(145)
Net current-period other comprehensive loss(2)
— (145)(145)
AOCI, ending balance$— $(166)$(166)
_____________________
(1)Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive income (loss). We did not have investments in AFS debt securities during the year ended December 31, 2020. Additionally, there were no reclassifications related to foreign currency translation adjustments during the years ended December 31, 2021 and 2020.
(2)There were no tax impacts during the years presented due to reserves against deferred tax assets in jurisdictions where other comprehensive income activity was generated.
v3.22.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation
Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the consolidated statements of operations and comprehensive income (loss) for the years indicated:
Year Ended December 31,
202120202019
Technology and product development$61,431 $28,271 $16,107 
Sales and marketing16,140 8,045 4,192 
Cost of operations11,743 6,067 1,678 
General and administrative149,697 57,487 38,959 
Total$239,011 $99,870 $60,936 
Schedule of Stock Option Activity
The following is a summary of stock option activity for the year ended December 31, 2021:
Number of
Stock Options		Weighted Average
Exercise Price		Weighted Average
Remaining
Contractual Term
(in years)
Outstanding as of January 1, 202117,183,828 $9.92 6.6
Retroactive conversion of stock options due to Business Combination12,764,147 (4.23)
Outstanding as of January 1, 2021, as converted29,947,975 5.69 6.6
Granted— n/a
Exercised(8,523,468)2.95 
Forfeited(110,179)1.63 
Expired(143,181)6.35 
Outstanding as of December 31, 202121,171,147 $6.81 5.8
Exercisable as of December 31, 202120,902,650 $6.83 5.8
Schedule of Fair Value Inputs The following table summarizes the inputs used for estimating the fair value of stock options granted during the year ended December 31, 2020. There were no stock options granted during the years ended December 31, 2021 and 2019. During
the year ended December 31, 2020, the inputs disclosed below exclude those associated with certain replacement options granted in connection with our acquisition of Galileo in 2020.
Year Ended
December 31, 2020
Input
Risk-free interest rate
0.3% – 1.4%
Expected term (years)
5.5 – 6.0
Expected volatility
36.5% – 42.5%
Fair value of common stock
$6.43 – $6.95
Dividend yield—%
Schedule of RSU Activity
The following table summarizes RSU activity for the year ended December 31, 2021:
Number of
RSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 202125,591,913$13.06 
Retroactive conversion of RSUs due to Business Combination19,009,673(5.57)
Outstanding as of January 1, 2021, as converted44,601,5867.49 
Granted27,481,63816.92 
Vested(1)
(16,427,162)8.50 
Forfeited(6,968,538)9.25 
Outstanding as of December 31, 2021(2)
48,687,524$12.23 
_____________________
(1)The total fair value, based on grant date fair value, of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $139.6 million, $76.3 million, and $50.4 million, respectively.
(2)Includes 178,021 RSUs that were granted in 2020 with an original vest date in June 2021 to earn the first tranche of compensation for the 2020 plan period. However, upon determining that the original performance-based vesting condition would not be satisfied, the Company modified the awards to extend the vesting date by 12 months. We concluded that the facts and circumstances aligned with an improbable-to-probable modification (Type III) and the vesting condition of the modified awards is a service-based condition. As a result, we reversed previously recognized share-based compensation expense of $1,237 in June 2021. For the modified awards, we will record total share-based compensation expense of $3,884 determined based on the number of awards expected to vest and the modification-date fair value over the 12-month service period, of which $2,132 was recorded during the year ended December 31, 2021.
Schedule of PSU Activity
The following table summarizes PSU activity for the year ended December 31, 2021:
Number of
PSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2021—n/a
Granted
23,141,462$9.50 
Vested—n/a
Forfeited
(171,066)7.50
Outstanding as of December 31, 2021
22,970,396$9.52 
Schedule of Valuation Inputs and Assumptions
The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Conditional prepayment rate
16.5% – 26.3%
19.2%
15.8% – 33.3%
18.4%
Annual default rate
0.2% – 4.2%
0.4%
0.2% – 4.9%
0.4%
Discount rate
1.9% – 7.1%
2.9%
1.1% – 7.1%
3.3%
Home loans
Conditional prepayment rate
4.8% – 16.4%
12.4%
4.4% – 17.6%
14.9%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 4.9%
0.1%
Discount rate
2.5% – 13.0%
2.6%
1.3% – 10.0%
1.6%
Personal loans
Conditional prepayment rate
18.4% – 37.7%
20.5%
14.5% – 23.2%
18.1%
Annual default rate
4.2% – 30.0%
4.4%
3.3% – 33.8%
4.2%
Discount rate
3.9% – 7.0%
4.0%
5.0% – 10.7%
6.0%
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Student loans
Market servicing costs
0.1% – 0.2%
0.1%
0.1% – 0.2%
0.1%
Conditional prepayment rate
15.2% – 25.6%
20.4%
13.8%  – 24.7%
18.7%
Annual default rate
0.2% – 4.3%
0.4%
0.2% – 4.8%
0.4%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
Home loans
Market servicing costs
0.1% – 0.1%
0.1%
0.1% – 0.1%
0.1%
Conditional prepayment rate
10.0% – 16.4%
11.5%
13.9% – 20.3%
16.5%
Annual default rate
0.1% – 0.2%
0.1%
0.1% – 0.1%
0.1%
Discount rate
7.5% – 7.5%
7.5%
10.0% – 10.0%
10.0%
Personal loans
Market servicing costs
0.2% – 1.1%
0.2%
0.2% – 0.7%
0.3%
Conditional prepayment rate
22.5% – 41.4%
26.0%
16.2% – 26.1%
19.1%
Annual default rate
3.2% – 7.0%
4.4%
3.1% – 7.5%
5.5%
Discount rate
7.3% – 7.3%
7.3%
7.3% – 7.3%
7.3%
The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:
December 31,
20212020
Discount rate (range)
0.6% – 3.7%
0.8% – 4.0%
Conditional prepayment rate (range)
19.5% – 32.2%
18.8% – 21.9%
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Residual investments
Conditional prepayment rate
19.5% – 33.6%
23.0%
18.8%  – 22.3%
20.2%
Annual default rate
0.3% – 5.7%
0.9%
0.3% – 6.2%
0.7%
Discount rate
2.6% – 10.5%
4.4%
3.0% – 18.5%
6.2%
Residual interests classified as debt
Conditional prepayment rate
20.0% – 41.8%
31.5%
19.5% – 24.8%
21.4%
Annual default rate
0.5% – 5.6%
3.2%
0.4% – 6.4%
3.1%
Discount rate
5.0% – 9.5%
5.7%
8.5% – 18.0%
10.8%
The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:
December 31, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
IRLCs
Loan funding probability(1)
75.0% – 75.0%
75.0%
54.5% – 54.5%
54.5%
Student loan commitments
Loan funding probability(1)
95.0% – 95.0%
95.0%n/an/a
_____________________
(1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $53,189 as of December 31, 2021. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs.
Our key valuation inputs were as follows as of the date indicated:
December 31, 2021
Purchase Price Earn-OutRangeWeighted Average
Conditional prepayment rate
22.9% – 22.9%
22.9%
Annual default rate
30.0% – 30.0%
30.0%
Discount rate
25.0% – 25.0%
25.0%
The key inputs into our Black-Scholes Model valuation as of December 31, 2020 and as of May 28, 2021, the final measurement date, were as follows:
InputMay 28, 2021December 31, 2020
Risk-free interest rate0.3 %0.2 %
Expected term (years)2.93.4
Expected volatility33.9 %32.6 %
Dividend yield— %— %
Exercise price$8.86 $8.86 
Fair value of Series H preferred stock$21.89 $9.74 
The following table summarizes the inputs used for estimating the fair values of PSUs granted during the year indicated:
Year Ended
InputDecember 31, 2021
Risk-free interest rate
0.8% – 0.8%
Expected volatility
34.9% – 35.9%
Fair value of common stock
$16.99 – $23.21
Dividend yield
0% – 0%
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Loss before income taxes consisted of the following for the years presented:
Year Ended December 31,
202120202019
Domestic$(461,023)$(316,252)$(238,533)
Foreign(20,154)(12,269)(1,066)
Loss before income taxes$(481,177)$(328,521)$(239,599)
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense (benefit) consisted of the following for the years presented:
Year Ended December 31,
202120202019
Current tax expense:
U.S. federal
$— $— $— 
U.S. state and local
1,481 23 17 
Foreign
75 13 29 
Total current tax expense
1,556 36 46 
Deferred tax expense (benefit):
U.S. federal
— (70,692)(34)
U.S. state and local
1,222 (33,823)94 
Foreign
(18)11 (8)
Total deferred tax expense (benefit)
1,204 (104,504)52 
Income tax expense (benefit)
$2,760 $(104,468)$98 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the expected income tax benefit at the statutory federal income tax rate to the income tax expense (benefit) at the effective income tax rate was as follows for the years presented:
Year Ended December 31,
202120202019
Expected income tax benefit at federal statutory rate$(101,047)$(68,921)$(50,316)
Valuation allowance for deferred tax assets92,197 (9,445)53,431 
State and local income taxes, net of federal benefit2,096 (26,681)52 
Research and development tax credits(7,067)(6,883)(5,469)
Change in fair value of warrants22,539 4,310 (595)
Non-deductible compensation expense(1)
23,838 — — 
Share-based compensation(2)
(33,950)(939)(66)
Other(2)
4,154 4,091 3,061 
Income tax expense (benefit)$2,760 $(104,468)$98 
Effective tax rate(0.57)%31.80 %(0.04)%
_____________________
(1)Reflects the impact of applying Section 162(m), which prohibits deduction of certain excess employee compensation to certain “covered employees”.
(2)We modified the presentation in the current period to separately present the share-based compensation component of non-deductible expenses. The remaining non-deductible expenses are included within “other”. We reclassified amounts for the prior periods to conform to the current period presentation.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of unrecognized tax benefits was as follows for the years presented:
Year Ended December 31,
202120202019
Unrecognized tax benefits at beginning of year$5,117 $4,307 $1,928 
Gross increases – tax positions in prior period582 55 1,306 
Gross decreases – tax positions in prior period— (331)(11)
Gross increases – tax positions in current period1,273 1,086 1,084 
Unrecognized tax benefits at end of year$6,972 $5,117 $4,307 
Schedule of Deferred Tax Assets and Liabilities
The significant components of the Company’s net deferred tax liabilities were as follows as of the dates indicated:
December 31,
20212020
Deferred tax assets:
Net operating loss carryforwards$336,444 $230,866 
Operating lease liabilities29,206 29,340 
Share-based compensation19,473 16,876 
Research and development credits35,416 25,538 
Accruals and other18,610 15,347 
Gross deferred tax assets439,149 317,967 
Valuation allowance(266,448)(141,101)
Total deferred tax assets$172,701 $176,866 
Deferred tax liabilities:
Depreciation$(3,555)$(4,951)
Amortization(86,081)(95,819)
Operating lease ROU assets(25,546)(26,121)
Servicing rights(47,585)(41,556)
Securitization investments(9,323)(7,268)
Other(2,398)(1,734)
Total deferred tax liabilities(174,488)(177,449)
Net deferred tax liabilities$(1,787)$(583)
Summary of Deferred Tax Valuation Allowance
The following table details the activity of the deferred tax asset valuation allowance during the years indicated:
Balance at Beginning of Period
Additions
Deductions(2)
Balance at End of Period
Charged to Costs and Expenses
Charged to Other Accounts(1)
Year Ended December 31, 2019
Deferred tax asset valuation allowance
$77,644 $70,782 $— $— $148,426 
Year Ended December 31, 2020
Deferred tax asset valuation allowance
148,426 87,552 4,916 (99,793)141,101 
Year Ended December 31, 2021
Deferred tax asset valuation allowance
141,101 125,347 — — 266,448 
_____________________
(1)Additions charged to other accounts for the year ended December 31, 2020 related to the increase in our valuation allowance in connection with net deferred tax assets acquired in our acquisition of 8 Limited in April 2020.
(2)Deductions for the year ended December 31, 2020 related to the release of our valuation allowance in connection with deferred tax liabilities acquired in our acquisition of Galileo in May 2020.
Summary of Operating Loss Carryforwards
The following table provides information about the Company’s net operating loss carryforwards by jurisdiction as of the date indicated:
December 31, 2021Expiration
U.S. federal(1)
$209,564 2031 – 2037
945,177 Indefinite
U.S. state(2)
1,029,763 2022 – 2041
206,333 Indefinite
Foreign59,206 Indefinite
_____________________
(1)Federal net operating loss carryforwards generated in periods after December 31, 2017 are subject to an 80% limitation when used in future tax periods as a result of the Tax Cuts and Jobs Act (“TCJA”) passed in 2017. The CARES Act provided for the temporary elimination of the 80% limitation for any net operating loss utilization prior to January 1, 2021.
(2)State conformity to either TCJA or the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law in March 2020, is established by each state’s local statutes and conformity to one act does not require conformity to both acts.
v3.22.0.1
Related Parties (Tables)
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Schedule of Equity Method Investments The following tables present summarized financial information for the entities in which we have equity method investments on an aggregated basis since the dates of acquisition:
As of December 31,
2021(1)
2020(2)
Total assets
$659,341 $10,254,902 
Total liabilities
540,642 10,032,736 
_____________________
(1)Reflects amounts related to our investment in Lower.
(2)Reflects amounts related to our investment in Apex.
Year Ended December 31,
2021(1)
2020(2)
2019
Total revenues
$127,490 $276,968 $149,922 
Net income
768 58,426 22,255 
_____________________
(1)For Lower, reflects amounts subsequent to the date on which we entered into the equity method arrangement.
(2)For the residential mortgage origination joint venture, reflects amounts through the third quarter of 2020, when we exited the arrangement.
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Lease Expenses, Supplemental Cash Flow and Balance Sheet Information
The components of lease expense and supplemental cash flow and non-cash information related to our leases for the years ended December 31, 2021, 2020 and 2019 were as follows. For our office leases, we net sublease income against other lease costs shown in the below table. Furthermore, cash flow information is presented net of sublease income.
Year Ended December 31,
202120202019
Operating lease cost
$20,188 $17,371 $16,380 
Finance lease cost – amortization of ROU assets
2,157 719 — 
Finance lease cost – interest expense on lease liabilities
485 167 — 
Short-term lease cost
1,335 463 323 
Variable lease cost(1)
3,979 2,382 880 
Sublease income(2)
(717)(820)(512)
Total lease cost
$27,427 $20,282 $17,071 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases
$19,811 $17,444 $12,446 
Operating cash outflows from finance leases
488 85 — 
Financing cash outflows from finance leases
516 489 — 
Supplemental non-cash information
Non-cash operating lease ROU assets obtained in exchange for new lease liabilities(3)
$12,774 $26,417 $24,715 
Non-cash increase (decrease) in operating lease ROU assets due to lease modifications(40)79 (5,407)
Non-cash finance lease ROU assets obtained in exchange for new finance lease liabilities(4)
— 15,100 — 
_____________________
(1)Variable lease cost includes non-lease components classified as lease costs, such as common area maintenance fees, property taxes and utilities, that vary in amount for reasons other than the passage of time. We elected the practical expedient to not bifurcate the lease component from the non-lease components.
(2)We entered into a sublease arrangement in July 2019, through which we earn sublease income, which offsets our lease cost related to the underlying premises. During the year ended December 31, 2020, we offered the sublessee a partial rent abatement as a result of the COVID-19 pandemic. The sublease arrangement terminated in August 2021.
(3)For the year ended December 31, 2020, includes $5,640 of operating lease ROU assets obtained through acquisitions.
(4)We did not have any finance leases prior to 2020.
Supplemental balance sheet information related to our leases was as follows as of the dates presented:
December 31,
20212020
Operating Leases
ROU assets
$115,191 $116,858 
Operating lease liabilities
$138,794 $139,796 
Weighted average remaining lease term (in years)
8.69.5
Weighted average discount rate
4.5 %4.7 %
Finance Leases
ROU assets(1)
$12,224 $14,381 
Lease liabilities(2)
$14,174 $14,693 
Weighted average remaining lease term (in years)
18.319.2
Weighted average discount rate
3.4 %3.4 %
_____________________
(1)Finance lease ROU assets were presented within property, equipment and software in the consolidated balance sheets.
(2)Finance lease liabilities were presented within accounts payable, accruals and other liabilities in the consolidated balance sheets.
Schedule of Lease Maturities, Finance Leases
For the periods presented, maturities of lease liabilities as of the date indicated and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows:
Operating Leases
Finance Leases
As of December 31, 2021
2022$22,287 $959 
202322,537 964 
202421,749 968 
202520,494 1,038 
202619,380 1,060 
Thereafter
60,948 14,053 
Total
167,395 19,042 
Less: imputed interest
(28,601)(4,868)
Lease liabilities
$138,794 $14,174 
Schedule of Lease Maturities, Operating Leases
For the periods presented, maturities of lease liabilities as of the date indicated and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows:
Operating Leases
Finance Leases
As of December 31, 2021
2022$22,287 $959 
202322,537 964 
202421,749 968 
202520,494 1,038 
202619,380 1,060 
Thereafter
60,948 14,053 
Total
167,395 19,042 
Less: imputed interest
(28,601)(4,868)
Lease liabilities
$138,794 $14,174 
Schedule of Other Commitments
Amounts payable in future periods are as follows:
As of December 31, 2021
2022$45,015 
202345,121 
202445,230 
202545,773 
202630,526 
Thereafter448,515 
Total$660,180 
v3.22.0.1
Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Loss Per Share
The calculation of basic and diluted loss per share was as follows for the years indicated:
Year Ended December 31,
202120202019
Numerator:
Net loss $(483,937)$(224,053)$(239,697)
Less: Redeemable preferred stock dividends
(40,426)(40,536)(23,923)
Less: preferred stock redemptions, net(1)
— (52,658)— 
Net loss attributable to common stockholders – basic
$(524,363)$(317,247)$(263,620)
Denominator:
Weighted average common stock outstanding – basic526,730,261 73,851,108 65,619,361 
Weighted average common stock outstanding – diluted526,730,261 73,851,108 65,619,361 
Loss per share – basic$(1.00)$(4.30)$(4.02)
Loss per share – diluted$(1.00)$(4.30)$(4.02)
___________________
(1)In December 2020, we exercised a call and redeemed certain redeemable preferred stock, as further discussed in Note 15. We considered the premium paid on redemption of $52,658 to be akin to a dividend to the redeemable preferred stockholder. As such, the premium, which represented the amount paid upon redemption over the carrying value of the preferred stock (such carrying value being reduced for preferred stock issuance costs), was deducted from net loss to determine the loss available to common stockholders.
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share
We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of each respective year.
Year Ended December 31,
202120202019
Common stock options
21,171,147 29,947,975 30,743,931 
Common stock warrants12,170,990 — — 
Unvested RSUs
48,687,524 44,601,586 25,293,061 
Unvested PSUs22,970,396 — — 
Convertible Notes(1)
53,538,000 — — 
Redeemable preferred stock exchangeable for common stock— 465,916,522 400,936,765 
Redeemable preferred stock warrants exchangeable for common stock— 12,170,990 12,170,990 
Contingent common stock(2)
— 320,649 — 
____________________
(1)For the year ended December 31, 2021, represented the number of common stock issuable upon conversion of all Convertible Notes at the conversion rate in effect at the balance sheet date, in accordance with ASU 2020-06. See Note 1 and Note 10 for additional information.
(2)For the year ended December 31, 2020, included contingently issuable common stock in connection with our acquisition of 8 Limited, which was subsequently issued in 2021. See Note 2 for additional information.
v3.22.0.1
Business Segment Information (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment for the years indicated. The information is derived from our internal financial reporting used for corporate management purposes. Assets are not allocated to reportable segments, as the Company’s CODM does not evaluate reportable segments using discrete asset information.
Year Ended December 31, 2021
Lending(1)
Technology
Platform(2)(3)(4)
Financial Services(4)
Reportable Segments Total
Other(4)
Total
Net revenue
Net interest income (loss)$258,102 $(29)$3,765 $261,838 $(9,594)$252,244 
Noninterest income480,221 194,915 54,313 729,449 3,179 732,628 
Total net revenue (loss)
$738,323 $194,886 $58,078 $991,287 $(6,415)$984,872 
Servicing rights – change in valuation inputs or assumptions(5)
2,651 — — 2,651 
Residual interests classified as debt – change in valuation inputs or assumptions(6)
22,802 — — 22,802 
Directly attributable expenses(364,169)(130,439)(192,996)(687,604)
Contribution profit (loss)
$399,607 $64,447 $(134,918)$329,136 
Year Ended December 31, 2020Lending
Technology
Platform(2)(4)
Financial Services(4)
Reportable Segments Total
Other(4)
Total
Net revenue
Net interest income (loss)$199,345 $(107)$484 $199,722 $(21,791)$177,931 
Noninterest income (loss)281,521 96,423 11,386 389,330 (1,729)387,601 
Total net revenue (loss)
$480,866 $96,316 $11,870 $589,052 $(23,520)$565,532 
Servicing rights – change in valuation inputs or assumptions(5)
17,459 — — 17,459 
Residual interests classified as debt – change in valuation inputs or assumptions(6)
38,216 — — 38,216 
Directly attributable expenses(294,812)(42,427)(143,966)(481,205)
Contribution profit (loss)
$241,729 $53,889 $(132,096)$163,522 
Year Ended December 31, 2019Lending
Technology
Platform(2)
Financial ServicesReportable Segments TotalOtherTotal
Net revenue
Net interest income$325,589 $— $614 $326,203 $3,631 $329,834 
Noninterest income108,712 795 3,318 112,825 — 112,825 
Total net revenue
$434,301 $795 $3,932 $439,028 $3,631 $442,659 
Servicing rights – change in valuation inputs or assumptions(5)
(8,487)— — (8,487)
Residual interests classified as debt – change in valuation inputs or assumptions(6)
17,157 — — 17,157 
Directly attributable expenses(350,511)— (122,732)(473,243)
Contribution profit (loss) $92,460 $795 $(118,800)$(25,545)
_____________________
(1)Noninterest income within the Lending segment for the year ended December 31, 2021 included $261 of losses from our equity method investment in Lower. See Note 1 under “Equity Method Investments” for additional information.
(2)Noninterest income within the Technology Platform segment for the year ended December 31, 2020 included $4,442 of earnings from our equity method investment in Apex, net of an impairment charge in the fourth quarter of 2020. Noninterest income within this segment consisted entirely of earnings from our equity method investment in Apex during the year ended December 31, 2019. Therefore, there were no directly attributable expenses to this reportable segment in that period. See Note 1 under “Equity Method Investments” for additional information.
(3)During the year ended December 31, 2021, the five largest clients in the Technology Platform segment contributed 63% of the total net revenue within the segment, which represented 13% of our consolidated total net revenue.
(4)During the year ended December 31, 2021, total net revenue for the Technology Platform segment included $1,863 of intercompany technology platform fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment directly attributable expenses representing the intercompany technology platform fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within “Other” and the expense is adjusted in our reconciliation of directly attributable expenses below. We recast the year ended December 31, 2020 to conform to the current year presentation, which resulted in the following: (i) an increase to the Technology Platform segment total net revenue and contribution profit of $686, (ii) a corresponding decrease to “Other” total net revenue for the elimination, (iii) a corresponding increase to Financial Services directly attributable expenses, and (iv) a corresponding adjustment in the reconciliation of directly attributable expenses.
(5)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change, which is recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss) is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.
(6)Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.
The following table reconciles reportable segments total contribution profit (loss) to loss before income taxes for the years presented. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.
Year Ended December 31,
202120202019
Reportable segments total contribution profit (loss)$329,136 $163,522 $(25,545)
Other total net revenue (loss)(6,415)(23,520)3,631 
Intercompany technology platform expenses1,863 686 — 
Servicing rights – change in valuation inputs or assumptions(2,651)(17,459)8,487 
Residual interests classified as debt – change in valuation inputs or assumptions(22,802)(38,216)(17,157)
Expenses not allocated to segments:
Share-based compensation expense(239,011)(99,870)(60,936)
Depreciation and amortization expense(101,568)(69,832)(15,955)
Fair value change of warrant liabilities(107,328)(20,525)2,834 
Employee-related costs(1)
(143,847)(114,599)(53,080)
Special payment(2)
(21,181)— — 
Other corporate and unallocated expenses(3)
(167,373)(108,708)(81,878)
Loss before income taxes$(481,177)$(328,521)$(239,599)
_____________________
(1)Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.
(2)Represents a special payment to the Series 1 preferred stockholders in connection with the Business Combination. See Note 11 for additional information.
(3)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing costs, tools and subscription costs, professional services costs and corporate insurance expense, as well as equity-based payments to non-employees.
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Organization and Consolidation of VIEs (Details)
 12 Months Ended
Dec. 31, 2021
segment
entity
Dec. 31, 2020
entity
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of reportable segments | segment 3  
Number of consolidated VIEs | entity 13 15
VIE ownership interest threshold to determine significant interest 10.00%  
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Allowance for Credit Losses and Internal Risk Tier Categories (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Past Due [Line Items]      
Loans, allowance for credit loss $ 7,037 $ 219  
Accrued interest receivable written off 133 0  
Credit card loans | Credit card loans      
Financing Receivable, Past Due [Line Items]      
Loans, allowance for credit loss 7,037 219 $ 0
Loans on nonaccrual status 0 0  
Charge offs for fraudulent transactions 1,292    
Accumulated accrued interest 1,359 2  
Credit card loans | Credit card loans | Total Loans      
Financing Receivable, Past Due [Line Items]      
Total loans 121,590 3,940  
Credit card loans | Credit card loans | Total Loans | Greater than or equal to 800      
Financing Receivable, Past Due [Line Items]      
Total loans 10,016    
Credit card loans | Credit card loans | Total Loans | 780 – 799      
Financing Receivable, Past Due [Line Items]      
Total loans 8,624    
Credit card loans | Credit card loans | Total Loans | 760 – 779      
Financing Receivable, Past Due [Line Items]      
Total loans 9,976    
Credit card loans | Credit card loans | Total Loans | 740 – 759      
Financing Receivable, Past Due [Line Items]      
Total loans 13,581    
Credit card loans | Credit card loans | Total Loans | 720 – 739      
Financing Receivable, Past Due [Line Items]      
Total loans 18,358    
Credit card loans | Credit card loans | Total Loans | 700 – 719      
Financing Receivable, Past Due [Line Items]      
Total loans 22,579    
Credit card loans | Credit card loans | Total Loans | 680 – 699      
Financing Receivable, Past Due [Line Items]      
Total loans 21,736    
Credit card loans | Credit card loans | Total Loans | 660 – 679      
Financing Receivable, Past Due [Line Items]      
Total loans 14,044    
Credit card loans | Credit card loans | Total Loans | 640 – 659      
Financing Receivable, Past Due [Line Items]      
Total loans 1,969    
Credit card loans | Credit card loans | Total Loans | Less than 640      
Financing Receivable, Past Due [Line Items]      
Total loans 707    
Credit card loans | Credit card loans | Current      
Financing Receivable, Past Due [Line Items]      
Total loans 115,356 3,864  
Credit card loans | Credit card loans | 30–59 Days      
Financing Receivable, Past Due [Line Items]      
Total loans 1,893 74  
Credit card loans | Credit card loans | 60–89 Days      
Financing Receivable, Past Due [Line Items]      
Total loans 1,683 2  
Credit card loans | Credit card loans | ≥ 90 Days      
Financing Receivable, Past Due [Line Items]      
Total loans 2,658 0  
Credit card loans | Credit card loans | Total Delinquent Loans      
Financing Receivable, Past Due [Line Items]      
Total loans $ 6,234 $ 76  
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Servicing Rights and Equity Method Investments (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 31, 2021
USD ($)
Jan. 31, 2021
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2021
USD ($)
class
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Number of classes of servicing assets | class         3    
Income (loss) from equity method investments         $ (261) $ 4,314 $ 869
Equity method investments         19,739 $ 107,534  
Lower Holding Company              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Equity method investment, ownership percentage 5.00%            
Consideration transferred acquisition of equity method investment $ 20            
Equity method investment, difference between carrying amount and underlying equity $ 1,769            
Proceeds from equity method investment, distribution         0    
Lower Holding Company | Non-interest income              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Income (loss) from equity method investments         $ (261)    
Lower Holding Company | Minimum              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Basis difference, amortization period 1 year 3 months 18 days            
Lower Holding Company | Maximum              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Basis difference, amortization period 5 years            
Lower Holding Company | Weighted Average              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Basis difference, amortization period         3 years 3 months 18 days    
Apex Clearing Holdings, LLC              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Equity method investment, ownership percentage     16.70%     16.80%  
Consideration transferred acquisition of equity method investment     $ 100     $ 145  
Income (loss) from equity method investments           4,442 795
Proceeds from equity method investment, distribution           $ 0 $ 0
Proceeds from equity method investments   $ 107,534          
Equity method investments         $ 0    
Residential Mortgage Origination              
Organization, Consolidation and Presentation of Financial Statements [Line Items]              
Proceeds from equity method investment, distribution       $ 974      
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Property, Equipment, Software and Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Finance lease ROU assets, gross balance $ 15,100 $ 15,100  
Finance lease ROU assets, accumulated amortization (2,876) (719)  
Finance lease ROU assets, carrying value 12,224 14,381  
Total property, plant and equipment including finance leases, gross balance 166,309 120,003  
Total property, plant and equipment including finance leases, accumulated depreciation/amortization (54,436) (38,514)  
Total property, plant and equipment including finance leases, carrying value 111,873 81,489  
Share-based compensation capitalized related to internally-developed software 7,776 0 $ 0
Amortization of share-based compensation expense 792    
Depreciation and amortization 101,568 69,832 15,955
Asset impairment charges 0 0 0
Computer hardware      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross balance 16,864 13,494  
Property, plant and equipment, accumulated depreciation (8,583) (6,037)  
Property, plant and equipment, carrying value 8,281 7,457  
Loss on sale of equipment 164    
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross balance 39,726 36,725  
Property, plant and equipment, accumulated depreciation (12,233) (7,920)  
Property, plant and equipment, carrying value 27,493 28,805  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross balance 18,326 12,361  
Property, plant and equipment, accumulated depreciation (7,748) (5,251)  
Property, plant and equipment, carrying value 10,578 7,110  
Software      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross balance 75,632 42,323  
Property, plant and equipment, accumulated depreciation (22,996) (18,587)  
Property, plant and equipment, carrying value 52,636 23,736  
Abandonment costs 0 0 2,137
Construction in progress      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross balance 661    
Property, plant and equipment, accumulated depreciation 0    
Property, plant and equipment, carrying value 661    
Property, Plant, Equipment and Finance Lease ROU Assets      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 31,061 $ 20,097 $ 12,947
Finance lease ROU assets      
Property, Plant and Equipment [Line Items]      
Right of use asset estimated useful life 7 years    
Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 2 years 6 months    
Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 7 years    
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Derivative Financial Instruments and Convertible Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Oct. 04, 2021
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Derivative liability $ 864 $ 2,955    
Gross Derivative Assets        
Total, gross 5,561 0    
Less: derivative netting (117) 0    
Total, net 5,444 0    
Gross Derivative Liabilities        
Total, gross (981) (2,955)    
Less: derivative netting 117 0    
Total, net (864) (2,955)    
Notional amount 5,798,529 5,876,277    
Accrued interest payable 1,306 19,817    
Convertible Senior Notes Due 2026 | Convertible Debt        
Gross Derivative Liabilities        
Face amount       $ 1,200,000
Restricted cash and cash equivalents        
Gross Derivative Liabilities        
Cash collateral included in restricted cash and restricted cash equivalents 299 1,746    
Interest rate swaps        
Gross Derivative Assets        
Total, gross 5,444 0    
Gross Derivative Liabilities        
Total, gross 0 (947)    
Interest rate swaps | Derivative contracts to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 4,210,000 1,475,000    
Home loan pipeline hedges        
Gross Derivative Assets        
Total, gross 117 0    
Gross Derivative Liabilities        
Total, gross (313) (1,872)    
Home loan pipeline hedges | Derivative contracts to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 421,000 371,000    
Interest rate futures        
Gross Derivative Assets        
Total, gross 0 0    
Gross Derivative Liabilities        
Total, gross 0 (136)    
Interest rate futures | Derivative contracts to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 0 3,400,000    
Interest rate caps        
Gross Derivative Assets        
Total, gross 0 0    
Gross Derivative Liabilities        
Total, gross (668) 0    
Interest rate caps | Derivative contracts to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 405,000 0    
Interest rate caps | Derivative contracts not designed to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 405,000 0    
IRLCs | Derivative contracts not designed to manage future loan sale execution risk        
Gross Derivative Liabilities        
Notional amount 357,529 630,277    
Not designated as hedging instrument        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 25,740 (39,303) $ (25,038)  
Not designated as hedging instrument | Third party warrants        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Derivative liability 964      
Gross Derivative Liabilities        
Total, net (964)      
Not designated as hedging instrument | Credit default swaps        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives   22,269    
Not designated as hedging instrument | Non-interest income, loan originations and sales | Derivative contracts to manage future loan sale execution risk        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 49,090 (54,829) (24,803)  
Not designated as hedging instrument | Non-interest income, loan originations and sales | Interest rate caps        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives (193) 0 0  
Not designated as hedging instrument | Non-interest income, loan originations and sales | IRLCs        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives (11,861) 14,530 916  
Not designated as hedging instrument | Non-interest income, loan originations and sales | Purchase price earn-out        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 9,312 0 0  
Not designated as hedging instrument | Non-interest income, loan originations and sales | Special payment        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives (21,181) 0 0  
Not designated as hedging instrument | Non-interest income, loan originations and sales | Third party warrants        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 573 0 0  
Not designated as hedging instrument | Non-interest income, other | Third party warrants        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 273      
Not designated as hedging instrument | Non-interest income, other | Derivative contracts to manage market risk associated with non-securitization investments        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 0 $ 996 $ (1,151)  
Not designated as hedging instrument | Noninterest expense, cost of operations | Third party warrants        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives 132      
Not designated as hedging instrument | Noninterest expense, general and administrative | Third party warrants        
Organization, Consolidation and Presentation of Financial Statements [Line Items]        
Gain (loss) from fair value changes on derivatives $ 168      
v3.22.0.1
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Loan Originations, Revenue, Advertising, Sales and Marketing (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
performanceObligation
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Amortization of deferred costs into interest income $ 1,451,000    
Deferred loan origination costs 3,422,000    
Deferred revenue 2,553,000 $ 2,520,000  
Deferred revenue, amount recognized 685,000 342,000  
Capitalized sales commission 678,000 527,000  
Sales commissions and fees 3,302,000 1,659,000  
Amortization of deferred sales commissions 267,000 185,000  
Accounts receivable associated with revenue from contracts with customer, net 33,748,000 23,278,000  
Total revenue from contracts with customers 247,718,000 103,331,000 $ 4,520,000
Advertising expenses 183,106,000 138,888,000 169,942,000
Lending      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 0 0 0
Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 54,666,000 12,036,000 4,520,000
Technology Platform      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 193,052,000 91,295,000 0
Referrals      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Deferred revenue $ 118,000    
Probability assigned to transaction price 100.00%    
Total revenue from contracts with customers $ 15,750,000 5,889,000 3,652,000
Referrals | Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers $ 15,750,000 5,889,000 3,652,000
Brokerage      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Probability assigned to transaction price 100.00%    
Total revenue from contracts with customers $ 22,733,000 3,470,000 84,000
Brokerage | Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers $ 22,733,000 3,470,000 84,000
Payment network      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Probability assigned to transaction price 100.00%    
Revenue, number of performance obligations | performanceObligation 2    
Total revenue from contracts with customers $ 11,847,000 3,600,000 660,000
Payment network | Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 10,642,000 2,433,000 660,000
Payment network | Technology Platform      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 1,205,000 1,167,000 0
Equity capital markets services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 2,643,000 0 0
Equity capital markets services | Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 2,643,000 0 0
Enterprise services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 2,898,000 244,000 124,000
Enterprise services | Financial Services      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 2,898,000 244,000 124,000
Technology platform fees      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers 191,847,000 90,128,000 0
Technology platform fees | Technology Platform      
Organization, Consolidation and Presentation of Financial Statements [Line Items]      
Total revenue from contracts with customers $ 191,847,000 $ 90,128,000 $ 0
v3.22.0.1
Business Combinations - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 19, 2022
USD ($)
day
Feb. 02, 2022
USD ($)
May 28, 2021
USD ($)
$ / shares
shares
May 14, 2020
USD ($)
Apr. 28, 2020
USD ($)
Apr. 30, 2021
USD ($)
shares
Dec. 31, 2021
shares
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Business Acquisition [Line Items]                    
Gross cash consideration from recapitalization     $ 764,800              
Value of shares redeemed and canceled     $ 150,000              
Equity issuance costs                 $ 56  
Payments for equity issuance costs               $ 56 0 $ 0
Number of shares issued in transaction (in shares) | shares     122,500,000              
Sale of stock, price per share (in dollars per share) | $ / shares     $ 10.00              
Aggregate purchase price     $ 1,225,000              
Exchange ratio     1.7428              
Series 1                    
Business Acquisition [Line Items]                    
Special distribution     $ 21,200              
Equity issuance costs     $ 27,500              
Payments for equity issuance costs                 $ 600  
Golden Pacific                    
Business Acquisition [Line Items]                    
Acquisition related costs               2,200    
Golden Pacific | Subsequent Event                    
Business Acquisition [Line Items]                    
Purchase consideration   $ 22,300                
Initial paid-in capital requirement   750,000                
Holdback amount   3,300                
Golden Pacific | Subsequent Event | Indemnification Agreement                    
Business Acquisition [Line Items]                    
Holdback amount   $ 600                
Technisys S.A.                    
Business Acquisition [Line Items]                    
Acquisition related costs               $ 3,300    
Technisys S.A. | Subsequent Event                    
Business Acquisition [Line Items]                    
Purchase consideration $ 1,100,000                  
Volume-weighted average price of common stock, period (in days) | day 20                  
Galileo Financial Technologies, Inc.                    
Business Acquisition [Line Items]                    
Purchase consideration       $ 1,200,000            
Acquisition related costs                   9,341
Percentage of voting interests acquired       100.00%            
Adjustment to reduce initial consideration transferred amount           $ (743)        
Reversal of previously established deferred tax asset valuation allowance                   $ (99,793)
Galileo Financial Technologies, Inc. | Series H-1                    
Business Acquisition [Line Items]                    
Adjustment to reduce initial consideration transferred amount, equivalent number of shares issued (in shares) | shares           (83,856)        
8 Limited                    
Business Acquisition [Line Items]                    
Purchase consideration         $ 16,126          
Percentage of voting interests acquired         100.00%          
Issuance of common stock in acquisition (in shares) | shares             320,649      
v3.22.0.1
Business Combinations - Schedule of Pro-forma Information (Details) - Galileo Financial Technologies, Inc. - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]    
Total net revenue $ 625,413 $ 483,921
Net loss $ (304,219) $ (209,770)
v3.22.0.1
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill [Roll Forward]      
Beginning balance $ 899,270 $ 15,673  
Less: accumulated impairment   0 $ 0
Beginning balance, net 898,527 899,270 $ 15,673
Additional goodwill recognized 0 883,597  
Other adjustments (743) 0  
Ending balance 898,527 899,270  
Technology Platform      
Goodwill [Roll Forward]      
Beginning balance, net 872,615 873,358  
Ending balance 872,615 873,358  
Financial Services      
Goodwill [Roll Forward]      
Beginning balance, net 25,912 25,912  
Ending balance $ 25,912 25,912  
Galileo Financial Technologies, Inc.      
Goodwill [Roll Forward]      
Additional goodwill recognized   873,358  
8 Limited      
Goodwill [Roll Forward]      
Additional goodwill recognized   $ 10,239  
v3.22.0.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill impairment $ 0 $ 0 $ 0
Amortization of intangible assets 70,507,000 49,735,000 3,008,000
Impairment of intangible assets $ 0 $ 0 $ 0
v3.22.0.1
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross Balance $ 410,138 $ 410,138
Accumulated Amortization (125,559) (55,052)
Net Book Value $ 284,579 $ 355,086
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (Years) 8 years 6 months 8 years 6 months
Gross Balance $ 257,438 $ 257,438
Accumulated Amortization (49,401) (19,142)
Net Book Value $ 208,037 238,296
Developed technology | Galileo Financial Technologies, Inc.    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets acquired   $ 253,000
Customer-related    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (Years) 3 years 7 months 6 days 3 years 7 months 6 days
Gross Balance $ 125,350 $ 125,350
Accumulated Amortization (57,083) (22,102)
Net Book Value $ 68,267 103,248
Customer-related | Galileo Financial Technologies, Inc.    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets acquired   $ 125,000
Trade names, trademarks and domain names    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (Years) 8 years 7 months 6 days 8 years 7 months 6 days
Gross Balance $ 10,000 $ 10,000
Accumulated Amortization (1,901) (736)
Net Book Value 8,099 9,264
Trade names, trademarks and domain names | Galileo Financial Technologies, Inc.    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets acquired   $ 10,000
Core banking infrastructure    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (Years)   1 year
Gross Balance 17,100 $ 17,100
Accumulated Amortization (17,100) (13,043)
Net Book Value $ 0 $ 4,057
Broker-dealer license and trading rights    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (Years) 5 years 8 months 12 days 5 years 8 months 12 days
Gross Balance $ 250 $ 250
Accumulated Amortization (74) (29)
Net Book Value $ 176 $ 221
v3.22.0.1
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2022 $ 66,449  
2023 64,753  
2024 31,468  
2025 31,468  
2026 30,641  
Thereafter 59,800  
Net Book Value $ 284,579 $ 355,086
v3.22.0.1
Investments in AFS Debt Securities - Schedule of Investments in Debt Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 195,796 $ 0
Accrued interest 462  
Gross Unrealized Gains 4  
Gross Unrealized Losses (1,355)  
Fair Value 194,907 $ 0
Amortization of premium 384  
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 103,014  
Accrued interest 73  
Gross Unrealized Gains 0  
Gross Unrealized Losses (584)  
Fair Value 102,503  
Multinational securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 19,911  
Accrued interest 109  
Gross Unrealized Gains 0  
Gross Unrealized Losses (154)  
Fair Value 19,866  
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 39,894  
Accrued interest 235  
Gross Unrealized Gains 0  
Gross Unrealized Losses (480)  
Fair Value 39,649  
Agency TBA    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 7,457  
Accrued interest 13  
Gross Unrealized Gains 4  
Gross Unrealized Losses (8)  
Fair Value 7,466  
Agency mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 4,153  
Accrued interest 14  
Gross Unrealized Gains 0  
Gross Unrealized Losses (31)  
Fair Value 4,136  
Other asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,610  
Accrued interest 5  
Gross Unrealized Gains 0  
Gross Unrealized Losses (91)  
Fair Value 9,524  
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,939  
Accrued interest 0  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Fair Value 9,939  
Other    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 1,818  
Accrued interest 13  
Gross Unrealized Gains 0  
Gross Unrealized Losses (7)  
Fair Value $ 1,824  
v3.22.0.1
Investments in AFS Debt Securities - Schedule of Investments by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investments in AFS debt securities—Amortized cost:    
Due Within One Year $ 10,539  
Due After One Year Through Five Years 171,637  
Due After Five Years Through Ten Years 2,010  
Due After Ten Years 11,610  
Amortized Cost 195,796 $ 0
AFS investment securities—Fair value:    
Due Within One Year 10,538  
Due After One Year Through Five Years 170,340  
Due After Five Years Through Ten Years 1,992  
Due After Ten Years 11,575  
Total 194,445  
Accrued interest 462  
U.S. Treasury securities    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 103,014  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Amortized Cost 103,014  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 102,430  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Total 102,430  
Accrued interest 73  
Multinational securities    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 19,911  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Amortized Cost 19,911  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 19,757  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Total 19,757  
Accrued interest 109  
Corporate bonds    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 39,894  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Amortized Cost 39,894  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 39,414  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Total 39,414  
Accrued interest 235  
Agency TBA    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 7,457  
Amortized Cost 7,457  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 7,453  
Total 7,453  
Accrued interest 13  
Agency mortgage-backed securities    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 4,153  
Amortized Cost 4,153  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 4,122  
Total 4,122  
Accrued interest 14  
Other asset-backed securities    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 0  
Due After One Year Through Five Years 7,600  
Due After Five Years Through Ten Years 2,010  
Due After Ten Years 0  
Amortized Cost 9,610  
AFS investment securities—Fair value:    
Due Within One Year 0  
Due After One Year Through Five Years 7,527  
Due After Five Years Through Ten Years 1,992  
Due After Ten Years 0  
Total 9,519  
Accrued interest 5  
Commercial paper    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 9,939  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Amortized Cost 9,939  
AFS investment securities—Fair value:    
Due Within One Year 9,939  
Due After One Year Through Five Years 0  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Total 9,939  
Accrued interest 0  
Other    
Investments in AFS debt securities—Amortized cost:    
Due Within One Year 600  
Due After One Year Through Five Years 1,218  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Amortized Cost 1,818  
AFS investment securities—Fair value:    
Due Within One Year 599  
Due After One Year Through Five Years 1,212  
Due After Five Years Through Ten Years 0  
Due After Ten Years 0  
Total 1,811  
Accrued interest $ 13  
v3.22.0.1
Investments in AFS Debt Securities - Schedule of Proceeds and Gross Realized Gains and Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]      
Gross realized gains included in earnings $ 44    
Gross realized losses included in earnings (152)    
Net realized losses (108)    
Gross proceeds from sales and maturities 57,541    
Proceeds from maturities of available-for-sale investments $ 4,799 $ 0 $ 0
v3.22.0.1
Loans - Schedule of Loan Portfolio (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Sep. 30, 2021
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value $ 5,952,972 $ 4,859,068  
Total loans [1],[2] 6,068,884 4,879,303  
Commercial loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans   16,500 $ 10,000
Accumulated unpaid interest   12  
Credit card loans and commercial loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans 115,912 20,235  
Securitized student loans | Student loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value 574,328 908,427  
Securitized personal loans | Personal loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value 234,576 559,743  
Student loans | Student loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value 2,876,509 1,958,032  
Home loans | Home loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value 212,709 179,689  
Personal loans | Personal loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans at fair value 2,054,850 1,253,177  
Credit card loan | Credit card loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans 115,912 3,723  
Origination of loans 380,979 6,957  
Gross repayments 261,283 3,017  
Non-cash reductions of loan balances 474    
Accumulated unpaid interest 1,359 2  
Commercial loan | Commercial loans      
Loans and Leases Receivable Disclosure [Line Items]      
Total loans $ 0 $ 16,512  
[1] As of December 31, 2021 and 2020, includes loans measured at fair value of $5,952,972 and $4,859,068, respectively, and loans measured at amortized cost of $115,912 and $20,235, respectively. See Note 1, Note 5, Note 8 and Note 9.
[2] Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 6.
v3.22.0.1
Loans - Schedule of Loans Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]    
Fair value of loans 90 days or more delinquent $ 5,952,972 $ 4,859,068
Student loans | Student loans    
Loans and Leases Receivable Disclosure [Line Items]    
Fair value of loans 90 days or more delinquent 2,876,509 1,958,032
Home loans | Home loans    
Loans and Leases Receivable Disclosure [Line Items]    
Fair value of loans 90 days or more delinquent 212,709 179,689
Personal loans | Personal loans    
Loans and Leases Receivable Disclosure [Line Items]    
Fair value of loans 90 days or more delinquent 2,054,850 1,253,177
Fair value, recurring | Fair value    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 5,755,228 4,726,724
Accrued interest 22,490 21,171
Cumulative fair value adjustments 175,254 111,173
Fair value of loans 90 days or more delinquent 5,952,972 4,859,068
Fair value, recurring | Fair value | Fair value of loans 90 days or more delinquent    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 6,354 5,245
Accrued interest 181 247
Cumulative fair value adjustments (5,054) (4,314)
Fair value of loans 90 days or more delinquent 1,481 1,178
Fair value, recurring | Fair value | Student loans | Student loans    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 3,356,344 2,774,511
Accrued interest 9,990 9,472
Cumulative fair value adjustments 84,503 82,476
Fair value of loans 90 days or more delinquent 3,450,837 2,866,459
Fair value, recurring | Fair value | Student loans | Fair value of loans 90 days or more delinquent | Student loans    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 1,589 1,046
Accrued interest 32 37
Cumulative fair value adjustments (865) (442)
Fair value of loans 90 days or more delinquent 756 641
Fair value, recurring | Fair value | Home loans | Home loans    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 210,111 171,967
Accrued interest 190 141
Cumulative fair value adjustments 2,408 7,581
Fair value of loans 90 days or more delinquent 212,709 179,689
Fair value, recurring | Fair value | Home loans | Fair value of loans 90 days or more delinquent | Home loans    
Loans and Leases Receivable Disclosure [Line Items]    
Fair value of loans 90 days or more delinquent 0 0
Fair value, recurring | Fair value | Personal loans | Personal loans    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 2,188,773 1,780,246
Accrued interest 12,310 11,558
Cumulative fair value adjustments 88,343 21,116
Fair value of loans 90 days or more delinquent 2,289,426 1,812,920
Fair value, recurring | Fair value | Personal loans | Fair value of loans 90 days or more delinquent | Personal loans    
Loans and Leases Receivable Disclosure [Line Items]    
Unpaid principal 4,765 4,199
Accrued interest 149 210
Cumulative fair value adjustments (4,189) (3,872)
Fair value of loans 90 days or more delinquent $ 725 $ 537
v3.22.0.1
Loans - Schedule of Changes in Loans Measured at Fair Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Credit risk contract      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Gain included in earnings from changes in instrument-specific credit risk $ 4,143 $ 13,896 $ 9,501
Fair value, recurring      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 4,859,068 5,387,958  
Origination of loans 12,658,682 9,693,158  
Principal payments (1,953,250) (1,901,555)  
Sales of loans (10,080,240) (8,167,445)  
Deconsolidation of securitizations   (902,194)  
Purchases 451,045 690,198  
Change in accumulated interest 1,319 (1,072)  
Change in fair value 16,348 60,020  
Ending balance 5,952,972 4,859,068 5,387,958
Securitization clean-up calls 425,302 76,044  
Purchase of previously sold loans from certain investors 17,596 606,264  
Fair value, recurring | Student loans | Student loans      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 2,866,459 3,185,233  
Origination of loans 4,293,526 4,928,880  
Principal payments (892,989) (883,761)  
Sales of loans (2,854,778) (4,534,286)  
Deconsolidation of securitizations   (495,507)  
Purchases 44,850 648,153  
Change in accumulated interest 518 1,286  
Change in fair value (6,749) 16,461  
Ending balance 3,450,837 2,866,459 3,185,233
Fair value, recurring | Home loans | Home loans      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 179,689 91,695  
Origination of loans 2,978,222 2,183,521  
Principal payments (6,184) (2,748)  
Sales of loans (2,935,038) (2,102,101)  
Deconsolidation of securitizations   0  
Purchases 1,144 2,070  
Change in accumulated interest 49 21  
Change in fair value (5,173) 7,231  
Ending balance 212,709 179,689 91,695
Fair value, recurring | Personal loans | Personal loans      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 1,812,920 2,111,030  
Origination of loans 5,386,934 2,580,757  
Principal payments (1,054,077) (1,015,046)  
Sales of loans (4,290,424) (1,531,058)  
Deconsolidation of securitizations   (406,687)  
Purchases 405,051 39,975  
Change in accumulated interest 752 (2,379)  
Change in fair value 28,270 36,328  
Ending balance $ 2,289,426 $ 1,812,920 $ 2,111,030
v3.22.0.1
Variable Interest Entities - Schedule of Consolidated VIEs (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Assets:      
Restricted cash and restricted cash equivalents $ 273,726 [1] $ 450,846 [1] $ 190,720
Loans [1],[2] 6,068,884 4,879,303  
Total assets 9,176,326 8,563,499  
Liabilities:      
Accounts payable, accruals and other liabilities [1] 298,164 452,909  
Debt [1] 3,947,983 4,798,925  
Residual interests classified as debt [1] 93,682 118,298  
Total liabilities 4,478,623 5,509,928  
Variable Interest Entity, Primary Beneficiary      
Assets:      
Restricted cash and restricted cash equivalents 53,161 76,973  
Loans 808,904 1,468,170  
Total assets 862,065 1,545,143  
Liabilities:      
Accounts payable, accruals and other liabilities 388 759  
Debt 660,419 1,248,822  
Residual interests classified as debt 93,682 118,298  
Total liabilities $ 754,489 $ 1,367,879  
[1] Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 6.
[2] As of December 31, 2021 and 2020, includes loans measured at fair value of $5,952,972 and $4,859,068, respectively, and loans measured at amortized cost of $115,912 and $20,235, respectively. See Note 1, Note 5, Note 8 and Note 9.
v3.22.0.1
Variable Interest Entities - Narrative (Details) - Variable Interest Entity, Not Primary Beneficiary
 12 Months Ended
Dec. 31, 2021
investment
loanTrust
Dec. 31, 2020
investment
loanTrust
Personal loans    
Variable Interest Entity [Line Items]    
Number of loan trusts established | loanTrust 4 1
Number of investments in VIEs 9 9
Number of deconsolidated VIEs 0 3
Student loans    
Variable Interest Entity [Line Items]    
Number of loan trusts established | loanTrust 4 4
Number of investments in VIEs 24 20
Number of deconsolidated VIEs 0 1
Number of consolidated VIEs   1
v3.22.0.1
Variable Interest Entities - Nonconsolidated VIEs (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]    
Securitization investments $ 374,688 $ 496,935
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entity [Line Items]    
Securitization investments 374,688 496,935
Variable Interest Entity, Not Primary Beneficiary | Personal loans    
Variable Interest Entity [Line Items]    
Securitization investments 62,925 71,115
Variable Interest Entity, Not Primary Beneficiary | Student loans    
Variable Interest Entity [Line Items]    
Securitization investments $ 311,763 $ 425,820
v3.22.0.1
Transfers of Financial Assets - Schedule of Loan Securitizations Accounted for as Sales, Whole Loan Sales and Participating Interests (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Student loans | Other asset-backed securities      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Cash $ 1,187,714 $ 2,015,357 $ 4,542,431
Securitization investments 62,783 130,807 239,698
Deconsolidation of debt 0 458,375 0
Servicing assets recognized 36,948 19,903 42,826
Total consideration 1,287,445 2,624,442 4,824,955
Aggregate unpaid principal balance and accrued interest of loans sold 1,227,379 2,540,052 4,677,471
Gain from loan sales 60,066 84,390 147,484
Loss on sale of deconsolidated debt   8,601  
Student loans | Whole loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Cash 1,676,892 2,596,719 1,399,921
Servicing assets recognized 15,526 25,734 21,145
Repurchase liabilities recognized (300) (510) (314)
Total consideration 1,692,118 2,621,943 1,420,752
Aggregate unpaid principal balance and accrued interest of loans sold 1,635,280 2,503,821 1,389,986
Gain from loan sales 56,838 118,122 30,766
Home loans | Whole loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Cash 2,989,813 2,173,709 733,860
Servicing assets recognized 31,294 20,440 5,724
Repurchase liabilities recognized (3,288) (3,034) (1,720)
Total consideration 3,017,819 2,191,115 737,864
Aggregate unpaid principal balance and accrued interest of loans sold 2,935,343 2,101,895 726,379
Gain from loan sales 82,476 89,220 11,485
Personal loans | Other asset-backed securities      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Cash 1,050,062 316,503 397,962
Securitization investments 55,491 20,961 111,556
Deconsolidation of debt 0 414,261 1,464,920
Servicing assets recognized 6,003 2,086 11,229
Total consideration 1,111,556 753,811 1,985,667
Aggregate unpaid principal balance and accrued interest of loans sold 1,054,171 708,346 1,906,757
Gain from loan sales 57,385 45,465 78,910
Loss on sale of deconsolidated debt   6,098 38,741
Personal loans | Whole loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Cash 3,373,655 1,285,689 2,316,771
Servicing assets recognized 21,811 8,429 31,138
Repurchase liabilities recognized (8,168) (3,535) (2,948)
Total consideration 3,387,298 1,290,583 2,344,961
Aggregate unpaid principal balance and accrued interest of loans sold 3,253,645 1,238,474 2,257,223
Gain from loan sales $ 133,653 $ 52,109 $ 87,738
v3.22.0.1
Transfers of Financial Assets - Unpaid Principal Balances of Transferred Loans (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced $ 19,886,137 $ 20,079,529  
Servicing fees collected 89,827 100,867 $ 80,941
Charge-offs, net of recoveries 126,951 214,926 261,368
Loans in repayment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 19,566,257 19,485,121  
Loans in-school/grace/deferment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 37,949 26,158  
Loans in forbearance      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 86,306 357,693  
Loans in delinquency      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 195,625 210,557  
Student loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 10,048,624 12,452,943  
Servicing fees collected 46,657 50,794 47,038
Charge-offs, net of recoveries 24,675 16,999 27,740
Student loans | Loans in repayment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 9,852,957 12,059,702  
Student loans | Loans in-school/grace/deferment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 37,949 26,158  
Student loans | Loans in forbearance      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 44,833 275,659  
Student loans | Loans in delinquency      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 112,885 91,424  
Home loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 4,622,819 2,683,865  
Servicing fees collected 8,749 4,499 2,635
Charge-offs, net of recoveries 0 0 0
Home loans | Loans in repayment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 4,575,001 2,629,015  
Home loans | Loans in-school/grace/deferment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 0 0  
Home loans | Loans in forbearance      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 40,353 46,357  
Home loans | Loans in delinquency      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 7,465 8,493  
Personal loans      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 5,214,694 4,942,721  
Servicing fees collected 34,421 45,574 31,268
Charge-offs, net of recoveries 102,276 197,927 $ 233,628
Personal loans | Loans in repayment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 5,138,299 4,796,404  
Personal loans | Loans in-school/grace/deferment      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 0 0  
Personal loans | Loans in forbearance      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced 1,120 35,677  
Personal loans | Loans in delinquency      
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Total loans serviced $ 75,275 $ 110,640  
v3.22.0.1
Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Accounts Receivable    
Beginning balance $ 562 $ 0
Provision for credit losses 3,043 766
Write-offs charged against the allowance (1,313) (204)
Ending balance 2,292 562
Credit Card Loans    
Beginning balance 219  
Ending balance 7,037 219
Credit card loans | Credit card loan    
Credit Card Loans    
Beginning balance 219 0
Provision for credit losses 7,573 219
Write-offs charged against the allowance (755) 0
Ending balance $ 7,037 $ 219
v3.22.0.1
Fair Value Measurements - Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Assets      
Investments in AFS debt securities $ 194,445    
Loans receivable at fair value 5,952,972 $ 4,859,068  
Servicing rights 168,259 149,597 $ 201,618
Derivative assets 5,444 0  
Liabilities      
Residual interests classified as debt [1] 93,682 118,298  
Derivative liabilities 864 2,955  
Carrying Value      
Assets      
Cash and cash equivalents 494,711 872,582  
Restricted cash and restricted cash equivalents 273,726 450,846  
Total assets 7,600,272 6,872,880  
Liabilities      
Debt 3,947,983 4,798,925  
Total liabilities 4,042,529 4,965,378  
Carrying Value | Credit card loans      
Assets      
Loans receivable at fair value 115,912 3,723  
Carrying Value | Commercial loan      
Assets      
Loans receivable at fair value   16,512  
Carrying Value | Fair value, recurring      
Assets      
Investments in AFS debt securities 194,907    
Servicing rights 168,259 149,597  
Derivative assets 5,444    
Liabilities      
Derivative liabilities 864 2,955  
Carrying Value | Fair value, recurring | Student loans      
Assets      
Loans receivable at fair value 3,450,837 2,866,459  
Carrying Value | Fair value, recurring | Home loans      
Assets      
Loans receivable at fair value 212,709 179,689  
Carrying Value | Fair value, recurring | Personal loans      
Assets      
Loans receivable at fair value 2,289,426 1,812,920  
Carrying Value | Fair value, recurring | Asset-backed bonds      
Assets      
Asset-backed bonds and residual investments 253,669 357,411  
Carrying Value | Fair value, recurring | Residual Investments      
Assets      
Asset-backed bonds and residual investments 121,019 139,524  
Carrying Value | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 1,486 6,850  
Carrying Value | Fair value, recurring | Third party warrants      
Assets      
Derivative assets 1,369    
Carrying Value | Fair value, recurring | Purchase price earn-out      
Assets      
Derivative assets 4,272    
Carrying Value | Fair value, recurring | Interest rate lock commitments      
Assets      
Derivative assets 3,759 15,620  
Carrying Value | Fair value, recurring | Student loan commitments      
Assets      
Student loan commitments 2,220    
Carrying Value | Fair value, recurring | Interest rate caps      
Assets      
Derivative assets 493    
Carrying Value | Fair value, recurring | Residual interests classified as debt      
Liabilities      
Residual interests classified as debt 93,682 118,298  
Carrying Value | Fair value, recurring | Warrant liabilities – Series H warrants      
Liabilities      
Warrant liabilities   39,959  
Carrying Value | Fair value, recurring | ETF short positions      
Liabilities      
ETF short positions   5,241  
Carrying Value | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments 6,054 1,147  
Fair value      
Assets      
Cash and cash equivalents 494,711 872,582  
Restricted cash and restricted cash equivalents 273,726 450,846  
Total assets 7,602,772 6,872,880  
Liabilities      
Debt 4,047,813 4,851,658  
Total liabilities 4,142,359 5,018,111  
Fair value | Credit card loans      
Assets      
Loans receivable at fair value 118,412 3,723  
Fair value | Commercial loan      
Assets      
Loans receivable at fair value   16,512  
Fair value | Fair value, recurring      
Assets      
Investments in AFS debt securities 194,907    
Loans receivable at fair value 5,952,972 4,859,068  
Servicing rights 168,259 149,597  
Derivative assets 5,444    
Liabilities      
Derivative liabilities 864 2,955  
Fair value | Fair value, recurring | Student loans      
Assets      
Loans receivable at fair value 3,450,837 2,866,459  
Fair value | Fair value, recurring | Home loans      
Assets      
Loans receivable at fair value 212,709 179,689  
Fair value | Fair value, recurring | Personal loans      
Assets      
Loans receivable at fair value 2,289,426 1,812,920  
Fair value | Fair value, recurring | Asset-backed bonds      
Assets      
Asset-backed bonds and residual investments 253,669 357,411  
Fair value | Fair value, recurring | Residual Investments      
Assets      
Asset-backed bonds and residual investments 121,019 139,524  
Fair value | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 1,486 6,850  
Fair value | Fair value, recurring | Third party warrants      
Assets      
Derivative assets 1,369    
Fair value | Fair value, recurring | Purchase price earn-out      
Assets      
Derivative assets 4,272    
Fair value | Fair value, recurring | Interest rate lock commitments      
Assets      
Derivative assets 3,759 15,620  
Fair value | Fair value, recurring | Student loan commitments      
Assets      
Student loan commitments 2,220    
Fair value | Fair value, recurring | Interest rate caps      
Assets      
Derivative assets 493    
Fair value | Fair value, recurring | Residual interests classified as debt      
Liabilities      
Residual interests classified as debt 93,682 118,298  
Fair value | Fair value, recurring | Warrant liabilities – Series H warrants      
Liabilities      
Warrant liabilities   39,959  
Fair value | Fair value, recurring | ETF short positions      
Liabilities      
ETF short positions   5,241  
Fair value | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments 6,054 1,147  
Level 1      
Assets      
Cash and cash equivalents 494,711 872,582  
Restricted cash and restricted cash equivalents 273,726 450,846  
Total assets 899,758 1,330,278  
Liabilities      
Debt 1,240,560 0  
Total liabilities 1,240,756 7,249  
Level 1 | Credit card loans      
Assets      
Loans receivable at fair value 0 0  
Level 1 | Commercial loan      
Assets      
Loans receivable at fair value   0  
Level 1 | Fair value, recurring      
Assets      
Investments in AFS debt securities 129,835    
Servicing rights 0 0  
Derivative assets 0    
Liabilities      
Derivative liabilities 196 2,008  
Level 1 | Fair value, recurring | Student loans      
Assets      
Loans receivable at fair value 0 0  
Level 1 | Fair value, recurring | Home loans      
Assets      
Loans receivable at fair value 0 0  
Level 1 | Fair value, recurring | Personal loans      
Assets      
Loans receivable at fair value 0 0  
Level 1 | Fair value, recurring | Asset-backed bonds      
Assets      
Asset-backed bonds and residual investments 0 0  
Level 1 | Fair value, recurring | Residual Investments      
Assets      
Asset-backed bonds and residual investments 0 0  
Level 1 | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 1,486 6,850  
Level 1 | Fair value, recurring | Third party warrants      
Assets      
Derivative assets 0    
Level 1 | Fair value, recurring | Purchase price earn-out      
Assets      
Derivative assets 0    
Level 1 | Fair value, recurring | Interest rate lock commitments      
Assets      
Derivative assets 0 0  
Level 1 | Fair value, recurring | Student loan commitments      
Assets      
Student loan commitments 0    
Level 1 | Fair value, recurring | Interest rate caps      
Assets      
Derivative assets 0    
Level 1 | Fair value, recurring | Residual interests classified as debt      
Liabilities      
Residual interests classified as debt 0 0  
Level 1 | Fair value, recurring | Warrant liabilities – Series H warrants      
Liabilities      
Warrant liabilities   0  
Level 1 | Fair value, recurring | ETF short positions      
Liabilities      
ETF short positions   5,241  
Level 1 | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments 0 0  
Level 1 | Fair value | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 1,486 6,850  
Level 1 | Fair value | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments 6,054 1,147  
Level 2      
Assets      
Cash and cash equivalents 0 0  
Restricted cash and restricted cash equivalents 0 0  
Total assets 324,678 357,411  
Liabilities      
Debt 2,807,253 4,851,658  
Total liabilities 2,807,921 4,852,605  
Level 2 | Credit card loans      
Assets      
Loans receivable at fair value 0 0  
Level 2 | Commercial loan      
Assets      
Loans receivable at fair value   0  
Level 2 | Fair value, recurring      
Assets      
Investments in AFS debt securities 65,072    
Servicing rights 0 0  
Derivative assets 5,444    
Liabilities      
Derivative liabilities 668 947  
Level 2 | Fair value, recurring | Student loans      
Assets      
Loans receivable at fair value 0 0  
Level 2 | Fair value, recurring | Home loans      
Assets      
Loans receivable at fair value 0 0  
Level 2 | Fair value, recurring | Personal loans      
Assets      
Loans receivable at fair value 0 0  
Level 2 | Fair value, recurring | Asset-backed bonds      
Assets      
Asset-backed bonds and residual investments 253,669 357,411  
Level 2 | Fair value, recurring | Residual Investments      
Assets      
Asset-backed bonds and residual investments 0 0  
Level 2 | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 0 0  
Level 2 | Fair value, recurring | Third party warrants      
Assets      
Derivative assets 0    
Level 2 | Fair value, recurring | Purchase price earn-out      
Assets      
Derivative assets 0    
Level 2 | Fair value, recurring | Interest rate lock commitments      
Assets      
Derivative assets 0 0  
Level 2 | Fair value, recurring | Student loan commitments      
Assets      
Student loan commitments 0    
Level 2 | Fair value, recurring | Interest rate caps      
Assets      
Derivative assets 493    
Level 2 | Fair value, recurring | Residual interests classified as debt      
Liabilities      
Residual interests classified as debt 0 0  
Level 2 | Fair value, recurring | Warrant liabilities – Series H warrants      
Liabilities      
Warrant liabilities   0  
Level 2 | Fair value, recurring | ETF short positions      
Liabilities      
ETF short positions   0  
Level 2 | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments 0 0  
Level 3      
Assets      
Cash and cash equivalents 0 0  
Restricted cash and restricted cash equivalents 0 0  
Total assets 6,378,336 5,185,191  
Liabilities      
Debt 0 0  
Total liabilities 93,682 158,257  
Level 3 | Credit card loans      
Assets      
Loans receivable at fair value 118,412 3,723  
Level 3 | Commercial loan      
Assets      
Loans receivable at fair value   16,512  
Level 3 | Fair value, recurring      
Assets      
Investments in AFS debt securities 0    
Servicing rights 168,259 149,597  
Derivative assets 0    
Liabilities      
Derivative liabilities 0 0  
Level 3 | Fair value, recurring | Student loans      
Assets      
Loans receivable at fair value 3,450,837 2,866,459  
Level 3 | Fair value, recurring | Home loans      
Assets      
Loans receivable at fair value 212,709 179,689  
Level 3 | Fair value, recurring | Personal loans      
Assets      
Loans receivable at fair value 2,289,426 1,812,920  
Level 3 | Fair value, recurring | Asset-backed bonds      
Assets      
Asset-backed bonds and residual investments 0 0  
Level 3 | Fair value, recurring | Residual Investments      
Assets      
Asset-backed bonds and residual investments 121,019 139,524  
Level 3 | Fair value, recurring | Non-securitization investment - ETFs      
Assets      
Non-securitization investments 0 0  
Level 3 | Fair value, recurring | Third party warrants      
Assets      
Derivative assets 1,369    
Level 3 | Fair value, recurring | Purchase price earn-out      
Assets      
Derivative assets 4,272    
Level 3 | Fair value, recurring | Interest rate lock commitments      
Assets      
Derivative assets 3,759 15,620  
Level 3 | Fair value, recurring | Student loan commitments      
Assets      
Student loan commitments 2,220    
Level 3 | Fair value, recurring | Interest rate caps      
Assets      
Derivative assets 0    
Level 3 | Fair value, recurring | Residual interests classified as debt      
Liabilities      
Residual interests classified as debt 93,682 118,298  
Level 3 | Fair value, recurring | Warrant liabilities – Series H warrants      
Liabilities      
Warrant liabilities   39,959  
Level 3 | Fair value, recurring | ETF short positions      
Liabilities      
ETF short positions   0  
Level 3 | Fair value, nonrecurring | Non-securitization investments - other      
Assets      
Non-securitization investments $ 6,054 $ 1,147  
[1] Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 6.
v3.22.0.1
Fair Value Measurements - Valuation Inputs and Assumptions (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Aggregate amount committed $ 53,189  
Conditional prepayment rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Asset-backed bonds 0.195 0.188
Residual investments 0.195 0.188
Residual interests classified as debt 0.200 0.195
Purchase price earn-out 0.229  
Conditional prepayment rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Asset-backed bonds 0.322 0.219
Residual investments 0.336 0.223
Residual interests classified as debt 0.418 0.248
Purchase price earn-out 0.229  
Conditional prepayment rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Residual investments 0.230 0.202
Residual interests classified as debt 0.315 0.214
Purchase price earn-out 0.229  
Annual default rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Residual investments 0.003 0.003
Residual interests classified as debt 0.005 0.004
Purchase price earn-out 0.300  
Annual default rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Residual investments 0.057 0.062
Residual interests classified as debt 0.056 0.064
Purchase price earn-out 0.300  
Annual default rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Residual investments 0.009 0.007
Residual interests classified as debt 0.032 0.031
Purchase price earn-out 0.300  
Discount rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Asset-backed bonds 0.006 0.008
Residual investments 0.026 0.030
Residual interests classified as debt 0.050 0.085
Purchase price earn-out 0.250  
Discount rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Asset-backed bonds 0.037 0.040
Residual investments 0.105 0.185
Residual interests classified as debt 0.095 0.180
Purchase price earn-out 0.250  
Discount rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Residual investments 0.044 0.062
Residual interests classified as debt 0.057 0.108
Purchase price earn-out 0.250  
Loan funding probability | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments 0.750 0.545
Student loan commitments 0.950  
Loan funding probability | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments 0.750 0.545
Student loan commitments 0.950  
Loan funding probability | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments 0.750 0.545
Student loan commitments 0.950  
Student loans | Market servicing costs | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.001 0.001
Student loans | Market servicing costs | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.002 0.002
Student loans | Market servicing costs | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.001 0.001
Student loans | Conditional prepayment rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.165 0.158
Servicing rights 0.152 0.138
Student loans | Conditional prepayment rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.263 0.333
Servicing rights 0.256 0.247
Student loans | Conditional prepayment rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.192 0.184
Servicing rights 0.204 0.187
Student loans | Annual default rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.002 0.002
Servicing rights 0.002 0.002
Student loans | Annual default rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.042 0.049
Servicing rights 0.043 0.048
Student loans | Annual default rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.004 0.004
Servicing rights 0.004 0.004
Student loans | Discount rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.019 0.011
Servicing rights 0.073 0.073
Student loans | Discount rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.071 0.071
Servicing rights 0.073 0.073
Student loans | Discount rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.029 0.033
Servicing rights 0.073 0.073
Home loans | Market servicing costs | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.001 0.001
Home loans | Market servicing costs | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.001 0.001
Home loans | Market servicing costs | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.001 0.001
Home loans | Conditional prepayment rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.048 0.044
Servicing rights 0.100 0.139
Home loans | Conditional prepayment rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.164 0.176
Servicing rights 0.164 0.203
Home loans | Conditional prepayment rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.124 0.149
Servicing rights 0.115 0.165
Home loans | Annual default rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.001 0.001
Servicing rights 0.001 0.001
Home loans | Annual default rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.002 0.049
Servicing rights 0.002 0.001
Home loans | Annual default rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.001 0.001
Servicing rights 0.001 0.001
Home loans | Discount rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.025 0.013
Servicing rights 0.075 0.100
Home loans | Discount rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.130 0.100
Servicing rights 0.075 0.100
Home loans | Discount rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.026 0.016
Servicing rights 0.075 0.100
Personal loans | Market servicing costs | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.002 0.002
Personal loans | Market servicing costs | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.011 0.007
Personal loans | Market servicing costs | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing rights 0.002 0.003
Personal loans | Conditional prepayment rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.184 0.145
Servicing rights 0.225 0.162
Personal loans | Conditional prepayment rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.377 0.232
Servicing rights 0.414 0.261
Personal loans | Conditional prepayment rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.205 0.181
Servicing rights 0.260 0.191
Personal loans | Annual default rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.042 0.033
Servicing rights 0.032 0.031
Personal loans | Annual default rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.300 0.338
Servicing rights 0.070 0.075
Personal loans | Annual default rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.044 0.042
Servicing rights 0.044 0.055
Personal loans | Discount rate | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.039 0.050
Servicing rights 0.073 0.073
Personal loans | Discount rate | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.070 0.107
Servicing rights 0.073 0.073
Personal loans | Discount rate | Weighted average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans 0.040 0.060
Servicing rights 0.073 0.073
v3.22.0.1
Fair Value Measurements - Sensitivity Analysis for Servicing Rights (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Market servicing costs    
2.5 basis points increase $ (10,822) $ (10,472)
5.0 basis points increase (21,644) (20,944)
Conditional prepayment rate    
10% increase (6,260) (5,430)
20% increase (12,031) (10,230)
Annual default rate    
10% increase (205) (336)
20% increase (408) (681)
Discount rate    
100 basis points increase (3,782) (2,986)
200 basis points increase $ (7,349) $ (5,820)
v3.22.0.1
Fair Value Measurements - Servicing Rights at Fair Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]    
Servicing rights, beginning balance $ 149,597 $ 201,618
Recognition of servicing from transfers of financial assets 111,582 76,592
Servicing rights assumed from third parties 370  
Derecognition of servicing via loan purchases (1,052) (13,858)
Change in valuation inputs or other assumptions (2,651) (17,459)
Realization of expected cash flows and other changes (89,587) (97,296)
Servicing rights, ending balance 168,259 149,597
Student loans    
Servicing Asset at Fair Value, Amount [Roll Forward]    
Servicing rights, beginning balance 100,637 138,582
Recognition of servicing from transfers of financial assets 52,474 45,637
Servicing rights assumed from third parties 0  
Derecognition of servicing via loan purchases (392) (12,924)
Change in valuation inputs or other assumptions (16,197) (20,168)
Realization of expected cash flows and other changes (46,519) (50,490)
Servicing rights, ending balance 90,003 100,637
Home loans    
Servicing Asset at Fair Value, Amount [Roll Forward]    
Servicing rights, beginning balance 23,914 13,181
Recognition of servicing from transfers of financial assets 31,294 20,440
Servicing rights assumed from third parties 0  
Derecognition of servicing via loan purchases 0 0
Change in valuation inputs or other assumptions 4,300 (5,056)
Realization of expected cash flows and other changes (8,975) (4,651)
Servicing rights, ending balance 50,533 23,914
Personal loans    
Servicing Asset at Fair Value, Amount [Roll Forward]    
Servicing rights, beginning balance 25,046 49,855
Recognition of servicing from transfers of financial assets 27,814 10,515
Servicing rights assumed from third parties 370  
Derecognition of servicing via loan purchases (660) (934)
Change in valuation inputs or other assumptions 9,246 7,765
Realization of expected cash flows and other changes (34,093) (42,155)
Servicing rights, ending balance $ 27,723 $ 25,046
v3.22.0.1
Fair Value Measurements - Residual Investments and Residual Interests Rollforward (Details) - Fair value, recurring - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Residual Investments      
Beginning balance $ 4,859,068 $ 5,387,958  
Ending balance 5,952,972 4,859,068 $ 5,387,958
Residual Interests Classified as Debt      
Sales of residual investments 10,080,240 8,167,445  
Residual Investments      
Residual Investments      
Beginning balance 139,524 262,880  
Additions 49,317 10,708  
Change in valuation inputs or other assumptions 10,603 9,702  
Payments (78,425) (96,505)  
Transfers   (47,261)  
Ending balance 121,019 139,524 262,880
Residual Interests Classified as Debt      
Derecognition upon achieving true sale accounting treatment   0  
Gain (loss) included in earnings from changes in instrument-specific credit risk (230) (1,252) 569
Sales of residual investments 4,291 8,342  
Residual Interests Classified as Debt      
Residual Interests Classified as Debt      
Beginning balance 118,298 271,778  
Additions 2,170 0  
Change in valuation inputs or other assumptions 22,802 38,216  
Payments (49,588) (89,978)  
Derecognition upon achieving true sale accounting treatment   (101,718)  
Transfers   0  
Ending balance $ 93,682 $ 118,298 $ 271,778
v3.22.0.1
Fair Value Measurements - Interest Rate Lock Commitments and Student Loan Commitments (Details) - Fair value, recurring - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Residual Investments    
Beginning balance $ 4,859,068 $ 5,387,958
Ending balance 5,952,972 4,859,068
Interest rate lock commitments    
Residual Investments    
Beginning balance 15,620 1,090
Revaluation adjustments 23,211 62,528
Funded loans (24,330) (27,321)
Unfunded loans (10,742) (20,677)
Ending balance 3,759 15,620
Student loan commitments    
Residual Investments    
Beginning balance 0 0
Revaluation adjustments 6,410 0
Funded loans (2,384) 0
Unfunded loans (1,806) 0
Ending balance $ 2,220 $ 0
v3.22.0.1
Fair Value Measurements - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Nov. 04, 2021
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
investment
shares
Dec. 31, 2021
USD ($)
investment
shares
Dec. 31, 2020
USD ($)
investment
$ / shares
shares
Dec. 31, 2019
USD ($)
Jun. 14, 2021
USD ($)
shares
May 28, 2021
$ / shares
Oct. 14, 2020
$ / shares
shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Exercise price of warrants (in dollars per share) | $ / shares       $ 8.86     $ 8.86  
Common stock, shares authorized (in shares) | shares   3,100,000,000 3,100,000,000 789,167,056        
Proceeds from warrant exercises     $ 95,047 $ 0 $ 0      
Reclassification of liabilities to equity upon exercise and redemption of warrants     185,762          
Fair value changes in warrant liabilities     107,328 20,525 $ (2,834)      
Fair Value | Fair Value, Recurring | Non-securitization investment - ETFs                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   $ 1,486 1,486 6,850        
Fair Value | Fair Value, Nonrecurring | Non-securitization Investments - Other                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   6,054 6,054 1,147        
Level 1 | Fair Value, Recurring | Non-securitization investment - ETFs                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   1,486 1,486 6,850        
Level 1 | Fair Value, Nonrecurring | Non-securitization Investments - Other                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   0 0 0        
Level 1 | Fair Value | Fair Value, Recurring | Non-securitization investment - ETFs                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   1,486 1,486 6,850        
Level 1 | Fair Value | Fair Value, Nonrecurring | Non-securitization Investments - Other                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   6,054 6,054 1,147        
Level 3 | Fair Value, Recurring | Non-securitization investment - ETFs                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   0 0 0        
Level 3 | Fair Value, Nonrecurring | Non-securitization Investments - Other                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   $ 6,054 $ 6,054 $ 1,147        
Level 3 | Fair Value | Fair Value, Nonrecurring | Other Security Investments, Equity Investment                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Number of impaired investments | investment   1 1 1        
Fair value of non-securitization investments, other   $ 1,886 $ 1,886 $ 1,147        
Impairment charge   803 803 $ 803        
Realized investment gain   739            
Level 3 | Fair Value | Fair Value, Nonrecurring | Other Security Investments, Additional Equity Investments                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Fair value of non-securitization investments, other   2,168 2,168          
Realized investment gain     3,967          
Proceeds from sale of investment     2,000          
Payments to acquire investments   $ 2,000            
Redemption of Warrants, Exceeds $10.00                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Exercise price of warrants (in dollars per share) | $ / shares $ 11.50              
Redemption price per warrant (in dollars per share) | $ / shares $ 0.10              
Ratio of common stock issued in connection with exercise to total shares of common stock per warrant (in shares) | shares 0.361              
SoFi Technology Warrants                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Common stock, shares authorized (in shares) | shares           28,125,000    
Warrant liability           $ 200,250    
Number of shares issued upon exercise of warrants (in shares) | shares 15,193,668              
Proceeds from warrant exercises $ 95,047              
Reclassification of liabilities to equity upon exercise and redemption of warrants $ 185,762              
Fair value changes in warrant liabilities     $ 14,488          
Initial Public Offering | Class A Common Stock                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Number of shares called for by each public warrant (in shares) | shares               1
Exercise price of warrants (in dollars per share) | $ / shares               $ 11.50
SCH Sponsor V LLC | Private Placement | Social Capital Hedosophia Holdings Corp. V                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Number of warrants issued (in shares) | shares               8,000,000
SCH Sponsor V LLC | Initial Public Offering | Social Capital Hedosophia Holdings Corp. V                
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                
Number of warrants issued (in shares) | shares               20,125,000
v3.22.0.1
Fair Value Measurements - Purchase Price Earn-Out Rollforward (Details) - Fair value, recurring - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Purchase Price Earn-Out    
Beginning balance $ 4,859,068 $ 5,387,958
Initial recognition 451,045 690,198
Ending balance 5,952,972 4,859,068
Purchase Price Earn-Out    
Purchase Price Earn-Out    
Beginning balance 0  
Initial recognition 7,165  
Payments (5,040)  
Change in valuation inputs or other assumptions 2,147  
Ending balance 4,272 $ 0
Lossincluded in earnings from changes in instrument-specific credit risk $ 286  
v3.22.0.1
Debt - Schedule of Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 04, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]        
Outstanding   $ 3,993,358 $ 4,830,137  
Unamortized debt issuance costs   (3,422)    
Less: unamortized debt issuance costs, premiums and discounts   (45,375) (31,212)  
Total reported debt   3,947,983 4,798,925  
Payments of issuance costs   9,465 16,443 $ 20,596
Amount not available for general borrowing purposes to secure letter of credit   9,100 9,300  
Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   558,479    
Outstanding   503,470 800,139  
Unamortized debt issuance costs   (3,851) (5,958)  
Unamortized discount   $ (1,094) $ (1,654)  
Weighted average effective interest rate   3.30% 3.22%  
Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 176,114    
Outstanding   163,370 $ 462,224  
Unamortized debt issuance costs   (1,683) (3,057)  
Unamortized discount   $ 207 $ (2,872)  
Weighted average effective interest rate   4.58% 4.47%  
Debt premium   $ 335    
Minimum        
Debt Instrument [Line Items]        
Unused commitment fee percentage   0.00%    
Maximum        
Debt Instrument [Line Items]        
Unused commitment fee percentage   0.75%    
Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 1,198,692    
Total Capacity   4,075,000    
Outstanding   1,074,915 $ 1,537,754  
Unamortized debt issuance costs   $ (7,540) $ (7,940)  
Weighted average effective interest rate   1.45% 2.29%  
Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 272,116    
Total Capacity   2,700,000    
Outstanding   228,145 $ 858,402  
Unamortized debt issuance costs   $ (3,898) $ (6,692)  
Weighted average effective interest rate   2.08% 3.63%  
Home Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Total Capacity   1,000    
Outstanding   $ 0 $ 0  
Weighted average effective interest rate   0.00% 0.00%  
Credit Card Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 14,471    
Total Capacity   100,000    
Outstanding   11,810 $ 0  
Unamortized debt issuance costs   $ (312) $ 0  
Weighted average effective interest rate   6.39% 0.00%  
Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 401,773    
Outstanding   325,648 $ 431,243  
Unamortized debt issuance costs   $ (2,086) $ (2,052)  
Weighted average effective interest rate   2.00% 2.24%  
SoFi Funding I | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Total Capacity   200,000    
Outstanding   0 $ 374,575  
SoFi Funding III | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   4,440    
Total Capacity   75,000    
Outstanding   3,930 30,170  
SoFi Funding V | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   350,000    
Outstanding   0 0  
SoFi Funding VI | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   60,614    
Total Capacity   600,000    
Outstanding   56,709 432,437  
SoFi Funding VII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   313,726    
Total Capacity   500,000    
Outstanding   284,475 276,910  
SoFi Funding VIII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   269,254    
Total Capacity   300,000    
Outstanding   245,723 221,342  
SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   10,417    
Total Capacity   500,000    
Outstanding   9,816 70,780  
SoFi Funding X | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   33,423    
Total Capacity   400,000    
Outstanding   29,647 44,136  
SoFi Funding XI | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   500,000    
Outstanding   0 87,404  
SoFi Funding XII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   25,087    
Total Capacity   200,000    
Outstanding   20,267 0  
SoFi Funding XIII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   481,731    
Total Capacity   450,000    
Outstanding   424,348 0  
SoFi Funding PL I | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   14,516    
Total Capacity   250,000    
Outstanding   11,911 0  
SoFi Funding PL II | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   400,000    
Outstanding   0 137,420  
SoFi Funding PL III | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   250,000    
Outstanding   0 2,793  
SoFi Funding PL IV | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   500,000    
Outstanding   0 132,416  
SoFi Funding PL VI | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   50,000    
Outstanding   0 107,595  
SoFi Funding PL VII | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   88,976    
Total Capacity   250,000    
Outstanding   71,572 15,610  
SoFi Funding PL X | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   200,000    
Outstanding   0 3,004  
SoFi Funding PL XI | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   200,000    
Outstanding   0 112,478  
SoFi Funding PL XII | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   0    
Outstanding   0 127,724  
SoFi Funding PL XIII | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   300,000    
Outstanding   0 219,362  
SoFi Funding PL XIV | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   168,624    
Total Capacity   300,000    
Outstanding   144,662 0  
Mortgage Warehouse VI | Home Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Total Capacity   1,000    
Outstanding   0 0  
SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   14,471    
Total Capacity   100,000    
Outstanding   11,810 0  
SoFi RR Funding I | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   28,407    
Total Capacity   100,000    
Outstanding   22,608 54,304  
SoFi RR Repo | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   84,240    
Total Capacity   192,141    
Outstanding   69,843 75,863  
SoFi C RR Repo | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   0    
Outstanding   0 42,757  
SoFi RR Funding II | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   109,204    
Outstanding   98,031 160,199  
SoFi RR Funding III | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   43,334    
Outstanding   39,158 60,786  
SoFi RR Funding IV | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   81,797    
Total Capacity   100,000    
Outstanding   66,555 37,334  
SoFi RR Funding V | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Collateral Balances   $ 54,791    
Interest Rate   2.98%    
Outstanding   $ 29,453 0  
SoFi Corporate Revolver | Revolving Credit Facility        
Debt Instrument [Line Items]        
Amount not available for general borrowing purposes to secure letter of credit   6,000    
SoFi Corporate Revolver | Revolving Credit Facility | Revolving Credit Facility        
Debt Instrument [Line Items]        
Total Capacity   560,000    
Outstanding   486,000 486,000  
Unamortized debt issuance costs   $ (626) $ (987)  
Weighted average effective interest rate   1.18% 1.26%  
Convertible Senior Notes Due 2026 | Convertible Senior Notes        
Debt Instrument [Line Items]        
Interest Rate   0.00%    
Total Capacity $ 1,200,000      
Outstanding   $ 1,200,000 $ 0  
Unamortized debt issuance costs (1,700) (1,634) 0  
Unamortized discount   $ (22,858) $ 0  
Weighted average effective interest rate   0.43% 0.00%  
Debt discounts issued $ 24,000 $ 24,000    
Payments of issuance costs   1,600    
Seller Note | Notes        
Debt Instrument [Line Items]        
Outstanding   $ 0 $ 250,000  
Weighted average effective interest rate   10.00% 10.00%  
Other Financing Notes | Notes        
Debt Instrument [Line Items]        
Outstanding   $ 0 $ 4,375  
Weighted average effective interest rate   3.58% 3.64%  
SoFi PLP 2016-B LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 48,821    
Outstanding   43,186 $ 69,448  
SoFi PLP 2016-C LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   55,662    
Outstanding   49,685 81,115  
SoFi PLP 2016-D LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   69,636    
Outstanding   61,760 93,942  
SoFi PLP 2016-E LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   81,975    
Outstanding   74,242 117,800  
SoFi PLP 2017-A LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   102,677    
Outstanding   92,972 146,064  
SoFi PLP 2017-B LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   86,686    
Outstanding   $ 78,811 129,873  
SoFi PLP 2017-B LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   2.74%    
SoFi PLP 2017-B LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.44%    
SoFi PLP 2017-C LLC | Student Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 113,022    
Outstanding   102,814 161,897  
SoFi CLP 2016-1 LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Interest Rate   3.26%    
Outstanding   $ 0 36,546  
SoFi CLP 2016-2 LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Interest Rate   4.77%    
Outstanding   $ 0 37,973  
SoFi CLP 2016-3 LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Interest Rate   4.49%    
Outstanding   $ 0 30,780  
SoFi CLP 2018-3 LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   82,550    
Outstanding   $ 76,535 163,784  
SoFi CLP 2018-3 LLC | Minimum | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.02%    
SoFi CLP 2018-3 LLC | Maximum | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.67%    
SoFi CLP 2018-4 LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 93,564    
Outstanding   $ 86,835 184,831  
SoFi CLP 2018-4 LLC | Minimum | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.17%    
SoFi CLP 2018-4 LLC | Maximum | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.76%    
SoFi CLP 2018-3 Repack LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Interest Rate   2.00%    
Outstanding   $ 0 2,457  
SoFi CLP 2018-4 Repack LLC | Personal Loan Securitizations        
Debt Instrument [Line Items]        
Collateral Balances   $ 0    
Interest Rate   2.00%    
Outstanding   $ 0 $ 5,853  
LIBOR | SoFi Funding I | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.25%    
LIBOR | SoFi Funding V | Minimum        
Debt Instrument [Line Items]        
Interest Rate   0.25%    
LIBOR | SoFi Funding V | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.35%    
LIBOR | SoFi Funding VI | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.25%    
LIBOR | SoFi Funding VIII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.90%    
LIBOR | SoFi Funding PL II | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   2.25%    
LIBOR | SoFi Funding PL III | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.75%    
LIBOR | SoFi Funding PL VII | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.15%    
LIBOR | SoFi Funding PL X | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.425%    
LIBOR | SoFi Funding PL XI | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.70%    
LIBOR | SoFi Funding PL XII | Personal Loan Warehouse Facilities | Minimum | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   2.25%    
LIBOR | SoFi Funding PL XII | Personal Loan Warehouse Facilities | Maximum | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   3.15%    
LIBOR | SoFi Funding PL XIII | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.75%    
LIBOR | SoFi Funding PL XIV | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.90%    
LIBOR | SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.35%    
LIBOR | SoFi RR Funding I | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   2.00%    
LIBOR | SoFi RR Repo | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.85%    
LIBOR | SoFi C RR Repo | Risk Retention Warehouse Facilities | Minimum | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.80%    
LIBOR | SoFi C RR Repo | Risk Retention Warehouse Facilities | Maximum | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.85%    
LIBOR | SoFi RR Funding II | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.25%    
LIBOR | SoFi RR Funding III | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.25%    
LIBOR | SoFi RR Funding IV | Risk Retention Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.50%    
LIBOR | SoFi Corporate Revolver | Revolving Credit Facility | Revolving Credit Facility        
Debt Instrument [Line Items]        
Interest Rate   1.00%    
LIBOR | Seller Note | Notes        
Debt Instrument [Line Items]        
Interest Rate   10.00%    
LIBOR | Other Financing Notes | Minimum | Notes        
Debt Instrument [Line Items]        
Interest Rate   3.31%    
LIBOR | Other Financing Notes | Maximum | Notes        
Debt Instrument [Line Items]        
Interest Rate   5.47%    
LIBOR | SoFi PLP 2016-B LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   1.20%    
LIBOR | SoFi PLP 2016-B LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   3.80%    
LIBOR | SoFi PLP 2016-C LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   1.10%    
LIBOR | SoFi PLP 2016-C LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   3.35%    
LIBOR | SoFi PLP 2016-D LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   0.95%    
LIBOR | SoFi PLP 2016-D LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   3.23%    
LIBOR | SoFi PLP 2016-E LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   0.85%    
LIBOR | SoFi PLP 2016-E LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.43%    
LIBOR | SoFi PLP 2017-A LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   0.70%    
LIBOR | SoFi PLP 2017-A LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.43%    
LIBOR | SoFi PLP 2017-C LLC | Minimum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   0.60%    
LIBOR | SoFi PLP 2017-C LLC | Maximum | Student Loan Securitizations        
Debt Instrument [Line Items]        
Interest Rate   4.21%    
Prime Rate | SoFi Funding III | Minimum        
Debt Instrument [Line Items]        
Interest Rate   3.09%    
Prime Rate | SoFi Funding III | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.34%    
Commercial Paper Rate | SoFi Funding IX        
Debt Instrument [Line Items]        
Interest Rate   0.19% 0.25%  
Commercial Paper Rate | SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.875%    
Commercial Paper Rate | SoFi Funding X        
Debt Instrument [Line Items]        
Interest Rate   0.24% 0.28%  
Commercial Paper Rate | SoFi Funding X | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.25%    
Commercial Paper Rate | SoFi Funding XI        
Debt Instrument [Line Items]        
Interest Rate   0.19% 0.25%  
Commercial Paper Rate | SoFi Funding XI | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.15%    
Commercial Paper Rate | SoFi Funding XII        
Debt Instrument [Line Items]        
Interest Rate   0.19%    
Commercial Paper Rate | SoFi Funding XII | Maximum        
Debt Instrument [Line Items]        
Interest Rate   2.15%    
Commercial Paper Rate | SoFi Funding XII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.15%    
Commercial Paper Rate | SoFi Funding PL I        
Debt Instrument [Line Items]        
Interest Rate   0.18%    
Commercial Paper Rate | SoFi Funding PL I | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.375%    
Commercial Paper Rate | SoFi Funding PL IV        
Debt Instrument [Line Items]        
Interest Rate   0.16% 0.25%  
Commercial Paper Rate | SoFi Funding PL IV | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.70%    
Commercial Paper Rate | SoFi Funding PL VI        
Debt Instrument [Line Items]        
Interest Rate   0.16%    
Commercial Paper Rate | SoFi Funding PL VI | Personal Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.70%    
Commercial Paper Rate | SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   1.75%    
Interest Rate   0.24%    
SOFR | SoFi Funding VII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.85%    
SOFR | SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   2.10%    
SOFR | SoFi Funding XIII | Student Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   0.55%    
SOFR | SoFi Funding PL XIV        
Debt Instrument [Line Items]        
Interest Rate   0.115%    
SOFR | Mortgage Warehouse VI | Home Loan Warehouse Facilities | Warehouse Facilities        
Debt Instrument [Line Items]        
Interest Rate   2.00%    
v3.22.0.1
Debt - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Oct. 04, 2021
USD ($)
$ / shares
Oct. 31, 2021
day
Dec. 31, 2021
USD ($)
loan
shares
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]        
Debt issuance costs     $ 3,422  
Conversion price (in dollars per share) | $ / shares $ 22.41      
Warehouse Facilities | Student Loan Warehouse Facilities        
Debt Instrument [Line Items]        
Number of new loans opened | loan     2  
Maximum available capacity of opened facilities     $ 650,000  
Warehouse Facilities | Personal Loan Warehouse Facilities        
Debt Instrument [Line Items]        
Debt issuance costs     $ 3,898 $ 6,692
Number of new loans opened | loan     1  
Maximum available capacity of opened facilities     $ 300,000  
Number of loans closed | loan     1  
Maximum available capacity of closed facilities     $ 250,000  
Warehouse Facilities | Home Loan Warehouse Facilities        
Debt Instrument [Line Items]        
Number of loans closed | loan     1  
Maximum available capacity of closed facilities     $ 150,000  
Warehouse Facilities | Credit Card Warehouse Facilities        
Debt Instrument [Line Items]        
Debt issuance costs     $ 312 0
Number of new loans opened | loan     1  
Maximum available capacity of opened facilities     $ 100,000  
Warehouse Facilities | Risk Retention Warehouse Facilities        
Debt Instrument [Line Items]        
Debt issuance costs     $ 2,086 2,052
Number of new loans opened | loan     1  
Convertible Senior Notes Due 2026 | Convertible Debt        
Debt Instrument [Line Items]        
Face amount $ 1,200,000      
Net proceeds from offering $ 1,176,000      
Purchasers' discount percentage 2.00%      
Debt discounts issued $ 24,000   $ 24,000  
Debt issuance costs $ 1,700   1,634 $ 0
Interest expense     $ 1,200  
Conversion rate 0.00446150      
Number of shares available for conversion (in shares) | shares     53,538,000  
Observation period | day   30    
Seller Note | Notes Payable, Other Payables        
Debt Instrument [Line Items]        
Retirement of debt     $ 269,864  
Principal repayments     250,000  
Payments for accrued interest     $ 19,864  
v3.22.0.1
Debt - Maturities of Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total reported debt $ 3,947,983 $ 4,798,925
Debt with Scheduled Payments    
Debt Instrument [Line Items]    
2022 0  
2023 486,000  
2024 0  
2025 0  
2026 1,200,000  
Thereafter 0  
Total reported debt $ 1,686,000  
v3.22.0.1
Temporary Equity - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
May 28, 2021
USD ($)
$ / shares
shares
May 29, 2019
USD ($)
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
shares
Dec. 31, 2018
shares
Temporary Equity [Line Items]            
Preferred stock, shares authorized (in shares) | shares 100,000,000          
Preferred stock, par value (in dollars per share) | $ / shares $ 0.0001          
Redeemable preferred stock, shares authorized (in shares) | shares 100,000,000   100,000,000 570,562,965    
Redeemable preferred stock, par value (in dollars per share) | $ / shares $ 0.0000025   $ 0.00 $ 0.00    
Number of shares converted (in shares) | shares 465,832,666          
Redemption of redeemable preferred stock (in shares) | shares 15,000,000          
Exchange ratio 1.7428          
Redeemable preferred stock, shares outstanding (in shares) | shares     3,234,000 469,150,522 404,170,765 370,224,316
Redeemable preferred stock, shares issued (in shares) | shares     3,234,000 469,150,522    
Value of shares redeemed and canceled $ 150,000          
Issuance of redeemable preferred stock       $ 814,156 $ 551,577  
Payment of redeemable preferred stock issuance costs     $ 0 0 2,400  
Warrant Liability            
Temporary Equity [Line Items]            
Reclassification to permanent equity in conjunction with the Business Combination $ 161,775   $ 161,775      
Warrant To Purchase Series H Redeemable Preferred Stock            
Temporary Equity [Line Items]            
Number of warrants issued (in shares) | shares   12,170,990        
Series 1            
Temporary Equity [Line Items]            
Redeemable preferred stock, shares authorized (in shares) | shares 4,500,000          
Redeemable preferred stock, shares outstanding (in shares) | shares     3,234,000      
Redeemable preferred stock, shares issued (in shares) | shares     3,234,000      
Redeemable preferred stock, original issuance price (in dollars per share) | $ / shares $ 100.00   $ 100.00      
Special distribution $ 21,200          
Dividend rate (in dollars per share) | $ / shares $ 12.50          
Temporary equity, dividend rate percentage 12.50%          
Temporary equity, dividend rate spread percentage 9.94%          
Dividends payable     $ 0 0    
Temporary equity, dividend default rate 4.00%          
Temporary equity, redemption value $ 323,400   323,400      
Issuance of redeemable preferred stock   $ 320,400        
Series 1 | Dividend Paid            
Temporary Equity [Line Items]            
Dividends declared and paid     $ 40,426 $ 40,536 $ 23,923  
Series F Redeemable Preferred Stock            
Temporary Equity [Line Items]            
Exchange ratio 1.1102          
Series G Redeemable Preferred Stock            
Temporary Equity [Line Items]            
Exchange ratio 1.2093          
Series H Redeemable Preferred Stock            
Temporary Equity [Line Items]            
Exchange ratio 1.0863          
Proceeds allocated from issuance of warrants   22,300        
Issuance of redeemable preferred stock   193,900        
Fair value of Series H preferred stock (in dollars per share) | $ / shares $ 21.89     $ 9.74    
Series H Redeemable Preferred Stock | Common Stock Transaction            
Temporary Equity [Line Items]            
Fair value of Series H preferred stock (in dollars per share) | $ / shares       $ 10.57    
Preferred Stock            
Temporary Equity [Line Items]            
Redeemable preferred stock, shares outstanding (in shares) | shares     0      
Redeemable preferred stock, shares issued (in shares) | shares     0      
Series 1 and Series H Redeemable Preferred Stock            
Temporary Equity [Line Items]            
Issuance of redeemable preferred stock   539,000        
Payment of redeemable preferred stock issuance costs   $ 2,400        
v3.22.0.1
Temporary Equity - Valuation Inputs for Warrant Liability (Details)
May 28, 2021
$ / shares
Dec. 31, 2020
$ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Exercise price of warrants (in dollars per share) $ 8.86 $ 8.86
Series H Redeemable Preferred Stock    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value of Series H preferred stock (in dollars per share) $ 21.89 $ 9.74
Risk-free interest rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Warrant liability, measurement input 0.003 0.002
Expected term (years)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Warrants expected term 2 years 10 months 24 days 3 years 4 months 24 days
Expected volatility    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Warrant liability, measurement input 0.339 0.326
Dividend yield    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Warrant liability, measurement input 0 0
v3.22.0.1
Temporary Equity - Warrant Liability (Details) - Warrant Liability - USD ($)
$ in Thousands
 12 Months Ended
May 28, 2021
Dec. 31, 2021
Dec. 31, 2020
Residual Interests Classified as Debt      
Beginning balance   $ 39,959 $ 19,434
Change in valuation inputs or other assumptions   121,816 20,525
Reclassification to permanent equity in conjunction with the Business Combination $ (161,775) (161,775)  
Ending balance   $ 0 $ 39,959
v3.22.0.1
Permanent Equity - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
May 28, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Jun. 01, 2021
Dec. 31, 2018
Class of Stock [Line Items]              
Common stock, shares authorized (in shares)   789,167,056 3,100,000,000 789,167,056      
Common stock, par value (in dollars per share)   $ 0.00 $ 0.00 $ 0.00      
Common stock, shares issued (in shares)   115,084,358 828,154,462 115,084,358      
Common stock, shares outstanding (in shares)   115,084,358 828,154,462 115,084,358      
Number of shares issued to stockholder (in shares) 122,500,000            
Proceeds from common stock issuances $ 1,225,000            
Direct legal costs     $ 56 $ 0 $ 0    
Potential upward adjustment of number of shares issued pursuant to business combination 1,281,132            
Total cost of capped call transaction     $ 113,760        
Conversion price (in dollars per share)     $ 22.41        
Cap price (in dollars per share)     $ 32.02        
Common Stock              
Class of Stock [Line Items]              
Common stock, shares outstanding (in shares)   115,084,358 828,154,462 115,084,358 69,040,750   71,259,580
Common Stock Issuance              
Class of Stock [Line Items]              
Proceeds from common stock issuances   $ 369,800          
Direct legal costs       $ 56      
Common Stock Issuance | Common Stock              
Class of Stock [Line Items]              
Number of shares issued to stockholder (in shares)   34,973,294          
Common Stock              
Class of Stock [Line Items]              
Common stock, shares authorized (in shares)           3,000,000,000  
Common stock, par value (in dollars per share)           $ 0.0001  
Nonvoting Common Stock              
Class of Stock [Line Items]              
Common stock, shares authorized (in shares)   8,714,000 100,000,000 8,714,000   100,000,000  
Common stock, par value (in dollars per share)           $ 0.0001  
Common stock, shares issued (in shares)     0        
Common stock, shares outstanding (in shares)   2,406,549 0 2,406,549      
v3.22.0.1
Permanent Equity - Common Stock Reserved for Future Issuance (Details) - shares
Dec. 31, 2021
Dec. 31, 2020
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 191,008,538 673,305,089
Contingent common stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 320,649
Possible future issuance under stock plans    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 32,470,481 33,422,273
Unissued redeemable preferred stock reserved for issued warrants    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 12,170,990
Conversion of Convertible Notes    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 53,538,000 0
Outstanding common stock warrants    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 12,170,990 0
Conversion of outstanding redeemable preferred stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 465,916,522
Unissued redeemable preferred stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 86,925,094
Outstanding stock options, RSUs and PSUs    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 92,829,067 74,549,561
v3.22.0.1
Permanent Equity - Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ (120,115) $ (339,062) $ (68,422)
Other comprehensive income (loss) before reclassifications (1,413) (145)  
Amounts reclassified from AOCI into earnings 108    
Total other comprehensive loss (1,305) (145) (9)
Ending balance 4,377,329 (120,115) (339,062)
Accumulated Other Comprehensive Loss      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (166) (21) (12)
Total other comprehensive loss (1,305) (145) (9)
Ending balance (1,471) (166) (21)
Available-for-Sale Securities      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 0 0  
Other comprehensive income (loss) before reclassifications (1,459) 0  
Amounts reclassified from AOCI into earnings 108    
Total other comprehensive loss (1,351) 0  
Ending balance (1,351) 0 0
Foreign Currency Translation Adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (166) (21)  
Other comprehensive income (loss) before reclassifications 46 (145)  
Amounts reclassified from AOCI into earnings 0    
Total other comprehensive loss 46 (145)  
Ending balance $ (120) $ (166) $ (21)
v3.22.0.1
Share-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Jun. 14, 2021
May 28, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares authorized for issuance (in shares)       63,575,425  
Taxes paid related to net share settlement of stock-based awards $ 42,644 $ 31,259 $ 21,411    
Sale of stock, price per share (in dollars per share)         $ 10.00
Stock options granted (in shares) 0   0    
Weighted average grant date fair value (in dollars per share)   $ 2.44      
Compensation cost related to unvested stock options $ 5,800        
Common stock, weighted average fair value during period (in dollars per share) $ 18.02 7.67 $ 6.47    
Common Stock          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Issuance of common stock to non-employees (in shares) 18,058        
Common Stock | Common Stock Transaction          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Sale of stock, price per share (in dollars per share) $ 10.57 $ 10.57      
Restricted stock units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Taxes paid related to net share settlement of stock-based awards $ 42,644 $ 31,259 $ 21,411    
Compensation cost related to share based awards, period for recognition 3 years 1 month 6 days        
Granted (in dollars per share) $ 16.92 $ 7.79 $ 6.47    
Unrecognized compensation $ 540,600        
Restricted stock units | Executive Officer          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period   2 years      
Restricted stock units | Tranche one          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, percentage 25.00%        
Share award vesting rights, period 1 year        
Restricted stock units | Alternative vesting schedule one, first anniversary of commencement date          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, percentage 20.00%        
Share award vesting rights, period 1 year        
Restricted stock units | Alternative vesting schedule one          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 4 years        
Restricted stock units | Alternative vesting schedule two          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, percentage 25.00%        
Share award vesting rights, period 1 year        
Restricted stock units | Alternative vesting schedule three          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 3 years        
Restricted stock units | Second anniversary of commencement date | Executive Officer          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period   2 years      
Restricted stock units | Minimum | Alternative vesting schedule four          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 1 year        
Restricted stock units | Maximum | Alternative vesting schedule four          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 4 years        
Stock options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share awards, expiration period 10 years        
Share awards, expiration period after employee termination 90 days        
Compensation cost related to share based awards, period for recognition 1 year 2 months 12 days        
Aggregate intrinsic value of stock options exercised $ 131,200 $ 13,600 $ 13,400    
Aggregate intrinsic value of stock options outstanding 190,500        
Aggregate intrinsic value of stock options exercisable $ 187,600        
Stock options | Tranche one          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, percentage 25.00%        
Share award vesting rights, period 1 year        
Stock options | Tranche two          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 3 years        
Stock options | Alternative vesting schedule one, first anniversary of commencement date          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, percentage 20.00%        
Share award vesting rights, period 1 year        
Stock options | Alternative vesting schedule one          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 4 years        
Stock options | Alternative vesting schedule two          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 4 years        
Stock options | Alternative vesting schedule three          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 2 years        
Performance stock units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share award vesting rights, period 4 years        
Compensation cost related to share based awards, period for recognition 1 year 8 months 12 days        
Granted (in dollars per share) $ 9.50        
Unrecognized compensation $ 164,100        
v3.22.0.1
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
​Total $ 239,011 $ 99,870 $ 60,936
Technology and product development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
​Total 61,431 28,271 16,107
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
​Total 16,140 8,045 4,192
Cost of operations      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
​Total 11,743 6,067 1,678
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
​Total $ 149,697 $ 57,487 $ 38,959
v3.22.0.1
Share-Based Compensation - Summary of Option Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Number of Stock Options      
Beginning balance (in shares) 29,947,975    
Granted (in shares) 0   0
Exercised (in shares) (8,523,468)    
Forfeited (in shares) (110,179)    
Expired (in shares) (143,181)    
Ending balance (in shares) 21,171,147 29,947,975  
Exercisable (in shares) 20,902,650    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 5.69    
Exercised (in dollars per share) 2.95    
Forfeited (in dollars per share) 1.63    
Expired (in dollars per share) 6.35    
Ending balance (in dollars per share) 6.81 $ 5.69  
Exercisable (in dollars per share) $ 6.83    
Weighted Average Remaining Contractual Term (in years)      
Weighted average remaining contractual term, outstanding 5 years 9 months 18 days 6 years 7 months 6 days  
Weighted average remaining contractual term, exercisable 5 years 9 months 18 days    
As Previously Reported      
Number of Stock Options      
Beginning balance (in shares) 17,183,828    
Ending balance (in shares)   17,183,828  
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 9.92    
Ending balance (in dollars per share)   $ 9.92  
Weighted Average Remaining Contractual Term (in years)      
Weighted average remaining contractual term, outstanding   6 years 7 months 6 days  
Retroactive conversion of shares due to Business Combination      
Number of Stock Options      
Beginning balance (in shares) 12,764,147    
Ending balance (in shares)   12,764,147  
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ (4.23)    
Ending balance (in dollars per share)   $ (4.23)  
v3.22.0.1
Share-Based Compensation - Summary of Fair Value Inputs for Options (Details) - Stock options
 12 Months Ended
Dec. 31, 2020
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Dividend yield 0.00%
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate 0.30%
Expected term (years) 5 years 6 months
Expected volatility 36.50%
Fair value of common stock in (dollars per share) $ 6.43
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate 1.40%
Expected term (years) 6 years
Expected volatility 42.50%
Fair value of common stock in (dollars per share) $ 6.95
v3.22.0.1
Share-Based Compensation - Schedule of RSU and PSU Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Weighted Average Grant Date Fair Value        
Reversal of share-based compensation expense   $ (239,011) $ (99,870) $ (60,936)
Restricted stock units        
Number of Shares        
Beginning balance (in shares)   44,601,586    
Granted (in shares)   27,481,638    
Vested (in shares)   (16,427,162)    
Forfeited (in shares)   (6,968,538)    
Ending balance (in shares)   48,687,524 44,601,586  
Weighted Average Grant Date Fair Value        
Beginning balance (in dollars per share)   $ 7.49    
Granted (in dollars per share)   16.92 $ 7.79 $ 6.47
Vested (in dollars per share)   8.50    
Forfeited (in dollars per share)   9.25    
Ending balance (in dollars per share)   $ 12.23 $ 7.49  
Total fair value, RSUs granted   $ 139,600 $ 76,300 $ 50,400
Adjustment for shares granted during period due to administrative freeze on issuances (in shares)   178,021    
Share-based compensation expense recognized based on awards expected to vest and modification-date fair value $ 3,884 $ 2,132    
Restricted stock units | As Previously Reported        
Number of Shares        
Beginning balance (in shares)   25,591,913    
Ending balance (in shares)     25,591,913  
Weighted Average Grant Date Fair Value        
Beginning balance (in dollars per share)   $ 13.06    
Ending balance (in dollars per share)     $ 13.06  
Restricted stock units | Retroactive conversion of shares due to Business Combination        
Number of Shares        
Beginning balance (in shares)   19,009,673    
Ending balance (in shares)     19,009,673  
Weighted Average Grant Date Fair Value        
Beginning balance (in dollars per share)   $ (5.57)    
Ending balance (in dollars per share)     $ (5.57)  
Restricted stock units | Revision of prior period, reclassification adjustment        
Weighted Average Grant Date Fair Value        
Reversal of share-based compensation expense $ 1,237      
Performance stock units        
Number of Shares        
Beginning balance (in shares)   0    
Granted (in shares)   23,141,462    
Vested (in shares)   0    
Forfeited (in shares)   (171,066)    
Ending balance (in shares)   22,970,396 0  
Weighted Average Grant Date Fair Value        
Granted (in dollars per share)   $ 9.50    
Forfeited (in dollars per share)   7.50    
Ending balance (in dollars per share)   $ 9.52    
v3.22.0.1
Share-Based Compensation - Summary of Fair Value Inputs for PSUs (Details) - Performance stock units
 12 Months Ended
Dec. 31, 2021
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate, minimum 0.80%
Risk-free interest rate, maximum 0.80%
Expected volatility, minimum 34.90%
Expected volatility, maximum 35.90%
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair value of common stock in (dollars per share) $ 16.99
Dividend yield 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair value of common stock in (dollars per share) $ 23.21
Dividend yield 0.00%
v3.22.0.1
Income Taxes - Loss Before Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Domestic $ (461,023) $ (316,252) $ (238,533)
Foreign (20,154) (12,269) (1,066)
Loss before income taxes $ (481,177) $ (328,521) $ (239,599)
v3.22.0.1
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current tax expense:      
U.S. federal $ 0 $ 0 $ 0
U.S. state and local 1,481 23 17
Foreign 75 13 29
Total current tax expense 1,556 36 46
Deferred tax expense (benefit):      
U.S. federal 0 (70,692) (34)
U.S. state and local 1,222 (33,823) 94
Foreign (18) 11 (8)
Deferred income taxes 1,204 (104,504) 52
Tax provision $ 2,760 $ (104,468) $ 98
v3.22.0.1
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Expected income tax benefit at federal statutory rate $ (101,047) $ (68,921) $ (50,316)
Valuation allowance for deferred tax assets 92,197 (9,445) 53,431
State and local income taxes, net of federal benefit 2,096 (26,681) 52
Research and development tax credits (7,067) (6,883) (5,469)
Change in fair value of warrants 22,539 4,310 (595)
Non-deductible compensation expense 23,838 0 0
Share-based compensation (33,950) (939) (66)
Other 4,154 4,091 3,061
Tax provision $ 2,760 $ (104,468) $ 98
Effective tax rate (0.57%) 31.80% (0.04%)
v3.22.0.1
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits at beginning of year $ 5,117 $ 4,307 $ 1,928
Gross increases – tax positions in prior period 582 55 1,306
Gross decreases – tax positions in prior period 0 (331) (11)
Gross increases – tax positions in current period 1,273 1,086 1,084
Unrecognized tax benefits at end of year $ 6,972 $ 5,117 $ 4,307
v3.22.0.1
Income Taxes - Schedule of Significant Components of Net Deferred Tax Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets:        
Net operating loss carryforwards $ 336,444 $ 230,866    
Operating lease liabilities 29,206 29,340    
Share-based compensation 19,473 16,876    
Research and development credits 35,416 25,538    
Accruals and other 18,610 15,347    
Gross deferred tax assets 439,149 317,967    
Valuation allowance (266,448) (141,101) $ (148,426) $ (77,644)
Total deferred tax assets 172,701 176,866    
Deferred tax liabilities:        
Depreciation (3,555) (4,951)    
Amortization (86,081) (95,819)    
Operating lease ROU assets (25,546) (26,121)    
Servicing rights (47,585) (41,556)    
Securitization investments (9,323) (7,268)    
Other (2,398) (1,734)    
Total deferred tax liabilities (174,488) (177,449)    
Net deferred tax liabilities $ (1,787) $ (583)    
v3.22.0.1
Income Taxes - Schedule of Deferred Tax Asset Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Valuation Allowance [Line Items]      
Balance at Beginning of Period $ 141,101 $ 148,426 $ 77,644
Balance at End of Period 266,448 141,101 148,426
Charged to Costs and Expenses      
Valuation Allowance [Line Items]      
Increase (decrease) in valuation allowance 125,347 87,552 70,782
Charged to Other Accounts      
Valuation Allowance [Line Items]      
Increase (decrease) in valuation allowance 0 4,916 0
Deductions      
Valuation Allowance [Line Items]      
Increase (decrease) in valuation allowance $ 0 $ (99,793) $ 0
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Rate Reconciliation [Line Items]      
Income tax expense $ 2,760 $ (104,468) $ 98
U.S. Federal and State | Research and Development Tax Credits      
Income Tax Rate Reconciliation [Line Items]      
Tax credit carryforwards 42,462    
Charged to Costs and Expenses      
Income Tax Rate Reconciliation [Line Items]      
Increase (decrease) in valuation allowance 125,347 87,552 70,782
Charged to Other Accounts      
Income Tax Rate Reconciliation [Line Items]      
Increase (decrease) in valuation allowance 0 4,916 0
Deductions      
Income Tax Rate Reconciliation [Line Items]      
Increase (decrease) in valuation allowance $ 0 $ (99,793) $ 0
v3.22.0.1
Income Taxes - Schedule of Net Operating Loss Carryforwards (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
U.S. federal  
Income Tax Rate Reconciliation [Line Items]  
Operating loss carryforwards, subject to expiration $ 209,564
Operating loss carryforwards, indefinite expiration 945,177
U.S. state  
Income Tax Rate Reconciliation [Line Items]  
Operating loss carryforwards, subject to expiration 1,029,763
Operating loss carryforwards, indefinite expiration 206,333
Foreign  
Income Tax Rate Reconciliation [Line Items]  
Operating loss carryforwards, indefinite expiration $ 59,206
v3.22.0.1
Related Parties - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Feb. 28, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
May 28, 2021
Aug. 31, 2020
Nov. 30, 2019
Related Party Transaction [Line Items]              
Exercise price of warrants (in dollars per share)     $ 8.86   $ 8.86    
Related party notes   $ 211 $ 3,189 $ 3,338      
Other   60,298 $ 15,827 4,199      
Number of shares called and redeemed (in shares)     26,941,263        
Payments to repurchase note receivable     $ 52,658        
Common Stock              
Related Party Transaction [Line Items]              
Number of shares called during period (in shares)     104,132        
Payments to repurchase note receivable     $ 133,385        
Redeemable Preferred Stock              
Related Party Transaction [Line Items]              
Number of shares called and redeemed (in shares)     26,941,263        
Equity Method Investee              
Related Party Transaction [Line Items]              
Proceeds from related party for settlement of outstanding obligation $ 1,611            
Stockholder Note Receivable | Stockholder              
Related Party Transaction [Line Items]              
Notes receivable     $ 0 $ 58,000      
Exercise price of warrants (in dollars per share)       $ 5.05      
Related party notes     1,764        
APEX Loan | Equity Method Investee              
Related Party Transaction [Line Items]              
Notes receivable     7,643       $ 9,050
Related party notes   211 1,319 $ 124      
Interest rate on notes receivable           5.00% 12.50%
Proceeds from related party for settlement of outstanding obligation 18,304            
Apex Loan, Noninterest Income (Loss) | Equity Method Investee              
Related Party Transaction [Line Items]              
Amount of transactions with related parties     319        
APEX Loan, Principal Balances | Equity Method Investee              
Related Party Transaction [Line Items]              
Related party notes     1,425        
Proceeds from related party for settlement of outstanding obligation $ 16,693            
APEX Loan, Discount Accretion | Equity Method Investee              
Related Party Transaction [Line Items]              
Related party notes     106        
Other   $ 169          
APEX Loan, Interest Income Receivable | Equity Method Investee              
Related Party Transaction [Line Items]              
Related party interest income receivable     $ 1,443        
v3.22.0.1
Related Parties - Equity Method Investments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]      
Total assets $ 9,176,326 $ 8,563,499  
Total liabilities 4,478,623 5,509,928  
Net income (483,937) (224,053) $ (239,697)
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Related Party Transaction [Line Items]      
Total assets 659,341 10,254,902  
Total liabilities 540,642 10,032,736  
Total revenues 127,490 276,968 149,922
Net income $ 768 $ 58,426 $ 22,255
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies - Narrative (Details)
$ in Thousands, shares in Millions
 1 Months Ended 9 Months Ended 12 Months Ended
Mar. 22, 2021
shares
Oct. 31, 2021
USD ($)
Jan. 31, 2021
USD ($)
Sep. 30, 2019
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
repurchaseObligation
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Lessee, Lease, Description [Line Items]                
Additional operating lease cost not accounted for due to deferment, CARES Act           $ 1,509 $ 1,698  
Payments to be made under partnership agreement           660,180    
Technology and product development expenses           $ 276,087 201,199 $ 147,458
Number of types of repurchase obligations | repurchaseObligation           3    
Term of repurchase obligation           3 years    
Estimated repurchase obligations           $ 7,441 5,196  
Loans sold, subject to terms and conditions of repurchase obligations           6,500,000 3,900,000  
Letters of credit outstanding with financial institutions           $ 9,100 9,300  
Employee contribution percentage up to IRS limit           100.00%    
In re Renren Inc. Derivative Litigation                
Lessee, Lease, Description [Line Items]                
Number of shares subject to litigation (in shares) | shares 17              
Letter of Credit | FNMA Letter Of Credit                
Lessee, Lease, Description [Line Items]                
Collateral amount           $ 3,100 3,300  
Naming and Sponsorship Agreement                
Lessee, Lease, Description [Line Items]                
Term of partnership       20 years   20 years    
Payments to be made under partnership agreement       $ 625,000        
Payments for exclusive naming rights and partnerships     $ 3,300   $ 9,800 $ 22,017 $ 6,533  
Potential sales and marketing expenses           $ 12,700    
Cloud Computing Arrangement                
Lessee, Lease, Description [Line Items]                
Payments to be made under partnership agreement   $ 80,000            
Term of arrangement   4 years            
Technology and product development expenses   $ 3,600            
Loan Sales Volume Benchmark | Customer Concentration Risk | Two Largest Third-Party Buyers                
Lessee, Lease, Description [Line Items]                
Concentration risk, percentage           42.00% 49.00%  
Loan Sales Volume Benchmark | Customer Concentration Risk | Largest Third-Party Buyer                
Lessee, Lease, Description [Line Items]                
Concentration risk, percentage               10.00%
Minimum                
Lessee, Lease, Description [Line Items]                
Operating lease, renewal term           1 year    
Maximum                
Lessee, Lease, Description [Line Items]                
Operating lease, renewal term           10 years    
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies - Components of Operating and Finance Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]      
Operating lease cost $ 20,188 $ 17,371 $ 16,380
Finance lease cost – amortization of ROU assets 2,157 719 0
Finance lease cost – interest expense on lease liabilities 485 167 0
Short-term lease cost 1,335 463 323
Variable lease cost 3,979 2,382 880
Sublease income (717) (820) (512)
Total lease cost 27,427 20,282 17,071
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash outflows from operating leases 19,811 17,444 12,446
Operating cash outflows from finance leases 488 85 0
Financing cash outflows from finance leases 516 489 0
Supplemental non-cash information      
Non-cash operating lease right-of-use assets obtained in exchange for new operating lease liabilities 12,774 26,417 24,715
Non-cash increase (decrease) in operating lease ROU assets due to lease modifications (40) 79 (5,407)
Non-cash finance lease ROU assets obtained in exchange for new finance lease liabilities $ 0 15,100 $ 0
Galileo Financial Technologies, Inc.      
Supplemental non-cash information      
Non-cash operating lease right-of-use assets obtained in exchange for new operating lease liabilities   $ 5,640  
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating Leases    
ROU assets $ 115,191 $ 116,858
Operating lease liabilities $ 138,794 $ 139,796
Weighted average remaining lease term (in years) 8 years 7 months 6 days 9 years 6 months
Weighted average discount rate 4.50% 4.70%
Finance Leases    
ROU assets $ 12,224 $ 14,381
Lease liabilities $ 14,174 $ 14,693
Weighted average remaining lease term (in years) 18 years 3 months 18 days 19 years 2 months 12 days
Weighted average discount rate 3.40% 3.40%
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Accounts payable, accruals and other liabilities Accounts payable, accruals and other liabilities
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies - Schedule of Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating Leases    
2022 $ 22,287  
2023 22,537  
2024 21,749  
2025 20,494  
2026 19,380  
Thereafter 60,948  
Total 167,395  
Less: imputed interest (28,601)  
Lease liabilities 138,794 $ 139,796
Finance Leases    
2022 959  
2023 964  
2024 968  
2025 1,038  
2026 1,060  
Thereafter 14,053  
Total 19,042  
Less: imputed interest (4,868)  
Lease liabilities $ 14,174 $ 14,693
v3.22.0.1
Commitments, Guarantees, Concentrations and Contingencies - Other Commitments (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2021 $ 45,015
2022 45,121
2023 45,230
2024 45,773
2025 30,526
Thereafter 448,515
Total $ 660,180
v3.22.0.1
Loss Per Share - Schedule of Loss per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net loss $ (483,937) $ (224,053) $ (239,697)
Less: Redeemable preferred stock dividends (40,426) (40,536) (23,923)
Less: preferred stock redemptions, net 0 (52,658) 0
Net loss attributable to common stockholders – basic $ (524,363) $ (317,247) $ (263,620)
Denominator:      
Weighted average common stock outstanding - basic (in shares) 526,730,261 73,851,108 65,619,361
Weighted average common stock outstanding - diluted (in shares) 526,730,261 73,851,108 65,619,361
Loss per share - basic (in dollars per share) $ (1.00) $ (4.30) $ (4.02)
Loss per share - diluted (in dollars per share) $ (1.00) $ (4.30) $ (4.02)
v3.22.0.1
Loss Per Share - Schedule of Anti-Dilutive Elements (Details) - shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Common stock options      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 21,171,147 29,947,975 30,743,931
Common stock warrants      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 12,170,990 0 0
Unvested RSUs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 48,687,524 44,601,586 25,293,061
Performance stock units      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 22,970,396 0 0
Convertible Senior Notes      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 53,538,000 0 0
Redeemable preferred stock exchangeable for common stock      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0 465,916,522 400,936,765
Redeemable preferred stock warrants exchangeable for common stock      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0 12,170,990 12,170,990
Contingent common stock      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0 320,649 0
v3.22.0.1
Business Segment Information - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Related party notes $ 211 $ 3,189 $ 3,338
Net interest income (loss) 252,244 177,931 329,834
APEX Loan | Equity Method Investee      
Segment Reporting Information [Line Items]      
Related party notes $ 211 1,319 $ 124
APEX Loan, Discount Accretion | Equity Method Investee      
Segment Reporting Information [Line Items]      
Related party notes   $ 106  
v3.22.0.1
Business Segment Information - Schedule of Financial Results (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Net interest income (loss) $ 252,244 $ 177,931 $ 329,834
Noninterest income 732,628 387,601 112,825
Total net revenue 984,872 565,532 442,659
Servicing rights – change in valuation inputs or assumptions 2,651 17,459  
Income (loss) from equity method investments (261) 4,314 869
Apex Clearing Holdings, LLC      
Segment Reporting Information [Line Items]      
Income (loss) from equity method investments   4,442 795
Non-interest income | Lower Holding Company      
Segment Reporting Information [Line Items]      
Income (loss) from equity method investments $ (261)    
Technology Platform | Five Largest Customers | Revenue, Segment Benchmark | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 63.00%    
Technology Platform | Five Largest Customers | Revenue Benchmark | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 13.00%    
Reportable Segments      
Segment Reporting Information [Line Items]      
Net interest income (loss) $ 261,838 199,722 326,203
Noninterest income 729,449 389,330 112,825
Total net revenue 991,287 589,052 439,028
Servicing rights – change in valuation inputs or assumptions 2,651 17,459 (8,487)
Residual interests classified as debt – change in valuation inputs or assumptions 22,802 38,216 17,157
Directly attributable expenses (687,604) (481,205) (473,243)
Contribution profit (loss) 329,136 163,522 (25,545)
Reportable Segments | Lending      
Segment Reporting Information [Line Items]      
Net interest income (loss) 258,102 199,345 325,589
Noninterest income 480,221 281,521 108,712
Total net revenue 738,323 480,866 434,301
Servicing rights – change in valuation inputs or assumptions 2,651 17,459 (8,487)
Residual interests classified as debt – change in valuation inputs or assumptions 22,802 38,216 17,157
Directly attributable expenses (364,169) (294,812) (350,511)
Contribution profit (loss) 399,607 241,729 92,460
Reportable Segments | Technology Platform      
Segment Reporting Information [Line Items]      
Net interest income (loss) (29) (107) 0
Noninterest income 194,915 96,423 795
Total net revenue 194,886 96,316 795
Servicing rights – change in valuation inputs or assumptions 0 0 0
Residual interests classified as debt – change in valuation inputs or assumptions 0 0 0
Directly attributable expenses (130,439) (42,427) 0
Contribution profit (loss) 64,447 53,889 795
Reportable Segments | Technology Platform | Non-interest income | Apex Clearing Holdings, LLC      
Segment Reporting Information [Line Items]      
Income (loss) from equity method investments   4,442  
Reportable Segments | Financial Services      
Segment Reporting Information [Line Items]      
Net interest income (loss) 3,765 484 614
Noninterest income 54,313 11,386 3,318
Total net revenue 58,078 11,870 3,932
Servicing rights – change in valuation inputs or assumptions 0 0 0
Residual interests classified as debt – change in valuation inputs or assumptions 0 0 0
Directly attributable expenses (192,996) (143,966) (122,732)
Contribution profit (loss) (134,918) (132,096) (118,800)
Other      
Segment Reporting Information [Line Items]      
Net interest income (loss) (9,594) (21,791) 3,631
Noninterest income 3,179 (1,729) 0
Total net revenue $ (6,415) $ (23,520) $ 3,631
v3.22.0.1
Business Segment Information - Reconciliation of Contribution Profit (Loss) To Loss Before Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Other total net revenue (loss) $ 984,872 $ 565,532 $ 442,659
Servicing rights – change in valuation inputs or assumptions (2,651) (17,459)  
Share-based compensation expense (239,011) (99,870) (60,936)
Depreciation and amortization expense (101,568) (69,832) (15,955)
Fair value change of warrant liabilities (107,328) (20,525) 2,834
Loss before income taxes (481,177) (328,521) (239,599)
Reportable Segments      
Segment Reporting Information [Line Items]      
Reportable segments total contribution profit (loss) 329,136 163,522 (25,545)
Other total net revenue (loss) 991,287 589,052 439,028
Intercompany technology platform expenses 1,863 686 0
Servicing rights – change in valuation inputs or assumptions (2,651) (17,459) 8,487
Residual interests classified as debt – change in valuation inputs or assumptions (22,802) (38,216) (17,157)
Segment Reconciling Items      
Segment Reporting Information [Line Items]      
Share-based compensation expense (239,011) (99,870) (60,936)
Depreciation and amortization expense (101,568) (69,832) (15,955)
Fair value change of warrant liabilities (107,328) (20,525) 2,834
Employee-related costs (143,847) (114,599) (53,080)
Other      
Segment Reporting Information [Line Items]      
Other total net revenue (loss) (6,415) (23,520) 3,631
Special payment (21,181) 0 0
Other corporate and unallocated expenses $ (167,373) $ (108,708) $ (81,878)