Read the case/article below and answer the Critical Thinking questions below.

SoFi Takes a Radical Approach to Financing

Financial technology firms continue to make headway by taking away loan and mortgage business from traditional banks. One of the most valued fintech companies today is SoFi, short for social finance. The company, which considers its approach to banking as radical, deems itself a modern finance company thats fueling the shift to a bankless world. Started by four students who met in business school, SoFis original lending model connected students and recent graduates from specific schools with alumni and institutional investors. It became a winwin: investors received a financial return, and borrowers were able to borrow at lower than federal government rates. SoFi soon expanded its product range to include online-only student loan refinancing, mortgages, and personal loans. What makes the company unique is its nontraditional underwriting model, which focuses on a persons overall financial well-being instead of a consumer credit score. Intent on lending to financially responsible individuals, SoFi analyzes forward-looking factors to determine a prospective borrowers future potential. Many start-ups are betting that more progressive and predictive lending models like this will work well in challenging business environments and allow them to lend, on average, to 10% more applicants.

Questions for Critical Thinking:

Discuss how SoFi has caused disruption in the financial services sector, and whether, in your opinion, traditional financial institutions are struggling to adapt to the way consumers and businesses want to use SoFis services.