SoFi Technologies (SOFI.O) reported a higher fourth-quarter earnings due to strong loan demand and rapid expansion in its fee-based operations.

Premarket trading saw the stock rise 5.7%.
In the quarter ending December 31, SoFi’s credit card and investing company revenue rose 78% to $456.7 million.

SoFi, a student-loan refinancer founded in 2011, now offers personal loans, mortgages, investments, and payments to tech-savvy young people.

Fee-based businesses protect fintechs against interest rate volatility. SoFi’s sector revenue rose 53% year-over-year.
Loan originations reached a record $10.5 billion, up 46% from a year earlier, led by high demand for personal, student, and housing loans.

CEO Anthony Noto said credit performance was expected and members’ spending, investment, and credit “remained strong.”

U.S. President Donald Trump proposed a 10% credit card interest rate restriction earlier this month, which banks fear might limit consumer access to borrowing.Because revolving balances don’t work, credit card lending should decline. Credit will be needed, leaving a huge market gap

Noto said personal loans might become an upfront financing option for people, which could boost fintech company.
SoFi’s fourth-quarter adjusted revenue rose 37% to a record $1 billion and adjusted earnings more than doubled to 13 cents per share from 5 cents.