SoFi’s results concerning the company’s revenues have become evidence of the effectiveness and justification of the firm’s concept of activity, which provides for the unification of savings, lending, and expenses within a single financial vector characterized by continuity.
Last Monday, July 31, the company published a report on its activities in the second quarter of 2023. These results indicate an increase in consumer activity to increase deposits. In this case, the dynamic is recorded, calculated in double digits. Also, the volume of lending increased in the second quarter.
The company’s CEO Anthony Noto said during a conference call with the participation of analysts that the results were obtained as part of a combination of brand status and a kind of advertising at the level of consumer communication when people themselves recommend services to each other without any external influence. The head of the firm noted that volatility is currently being recorded in the market, and failures are observed in the industry. The positive results of the company, according to him, reflect the diversification of business lines.
In the second quarter, the number of deposits of consumers of the firm’s services increased by 26% year-on-year, reaching $2.6 billion. The company raised the rates on these accounts to 4.4% per annum. Anthony Noto said that 90% of deposits are related to direct deposit operations.
The head of the company also says that the firm’s banking license allows for stimulating a positive economy in the field of lending and financial services.
The number of SoFi Money users in the second quarter increased by 47% year-on-year, amounting to 2.7 million accounts. Members of the corporate community have an average FICO score of 747 for a portfolio of direct deposits. About 50% of newly funded SoFi Money accounts open a direct deposit by the 30th day.
The total number of consumers of the company’s services increased by 44% year-on-year. Currently, this figure is 6.2 million people.
The average expenditure per savings account increased by 13% compared to the result for the previous quarter.
Sales of financial services increased by 47% year-on-year, reaching 7.9 million. Sales of credit products also increased. In this case, the growth dynamics was 25%.
During the second quarter, the company issued loans totaling $3.7 billion. This figure is 51% higher than the result recorded for the same period last year. Net write-offs were lower compared to the first quarter and amounted to 2.9% of the amount of student loans.
Anthony Noto says that resuming student loan repayments and abandoning attempts to extend their repayment period is a significant opportunity for the firm in terms of refinancing this debt.
Chris Lapointe, the company’s chief financial officer, said during a telephone conversation that the issuance of student loans in the second quarter decreased by 1% year–on–year, and mortgage loans – by 27%. Separately, he noted the restraining effect of macroeconomic factors.
The company’s technical platform generated revenue of $88 million in the second quarter. This figure is 4% higher than the result of a year ago. Revenue growth is partly due to the increase in the number of Galileo accounts to 129 million. This result is 11% higher than in the second quarter of 2022.
The company’s management stated that the quarterly increase in deposits by $2 billion is comfortable since the number of SoFi Money participants is increasing.
As we have reported earlier, SoFi Debuts Student Loan Tool.