SoFi will allow its customers to invest in initial public offerings (IPOs) of companies, an investment opportunity that has traditionally been reserved for large institutional investors, the online lender said on Friday.

The move by SoFi comes a day after Reuters reported online brokerage Robinhood was building a platform to "democratize" IPOs, including its own, that would allow users of its trading app to snap up shares alongside Wall Street funds, according to people familiar with the matter.