Deep Dive
Shownotes Transcript
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases so you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express. Not all purchases will be approved. Terms apply. Learn more at americanexpress.com slash AmexBusiness.
Bloomberg Audio Studios. Podcasts, radio, news. Shares of SoFi are higher after the fintech company raised its full-year forecast. SoFi CEO Anthony Nodo is here with us. Good morning to you, Mr. Nodo. You know, I think there was a lot of focus in the quarter on the momentum from the loan platform business, particularly the interest and demand from private credit. Talk to me more about that, Anthony, and where you see that business going forward.
Sure. We had a tremendous quarter and a great start to 2025 with 33% year-over-year growth in total revenue to $771 million. And that was up 33%, our fastest growth in five quarters. The loan platform business, as you mentioned, was a key driver of that. Very strong results there. We basically paid a fee by these asset buyers.
that want us to underwrite loans against a specific credit box that they outline. We leverage our underwriting capabilities, our marketing capabilities, and our servicing capabilities, and we get paid a fee for that. It's something we started about a year ago. We've already originated $6 billion of loans
in that particular business. And in the quarter, it was about $96 million of revenue. So it's almost $400 million on an annualized basis. We expect it to be over a billion dollars or a third billion dollar business over the course of time as the demand for that product continues to increase.
One area that we haven't tapped into yet, but that we will, is taking some of the loans that we decline. We decline about $100 billion of loans a year and making those available through the loan platform business as well for those that want a near prime type of credit asset. The other area you want to tap is crypto, right? You alluded to entering into stablecoin markets. Tell us more.
Yeah, we're very fortunate in that we've built. This is another record quarter for member growth. We're at 11 million members now. We added 800,000 members in the quarter and 1.2 million products up 34 percent, up 35 percent respectively. We want to continue to give our members a full suite of financial services products.
SoFi Money is the largest product that we have today. It was up 41%. The pilots were up 52%. Our invest business saw an acceleration up 21%, and we expect that acceleration to continue. Crypto would be another asset class to add to the invest business, allowing people to buy, sell, and hold crypto coins.
it's something we used to do um and it was eliminated because of our bank license but now the occ's put out an interpretive letter that allows that business to be part of a bank again so we'll continue to evaluate the landscape for changing regulatory environment but we'd like to not just only offer crypto for buy sell and hold but also have it transcend all
of our businesses. So using blockchain and crypto in the lending area, the spending area, in addition to our third party technology platform services, offering those types of infrastructure services to financial service companies. Anthony, you've got a really optimistic tone. And of course, you beat and you raised this on a day when consumer sentiment is basically at the lowest in five years. How do you have that confidence that consumers are going to continue to be of demand for you?
Yeah, we're seeing really strong demand for our goods and services. Our customer is a higher-end customer than the typical average American, about $150,000 in household income and a credit score on average of 750 from a FICO standpoint. We're taking share from the five largest banks in the country, so we're not as dependent on the cyclical environment for our growth because we're really a secular grower. That said, our credit performance has also been very strong, which is
subject to the macroeconomic environment, but we saw in our fifth quarter in a row of improvement in 90-day delinquencies. We saw continued improvement in our net charge-offs. So overall, the consumer's looking quite strong as it relates to credit and the demand for our other products like SoFi Money and SoFi Invest. I mentioned deposits were up quite meaningfully as well.
The last data point is debit spending. We're annualizing about $14 billion of debit spending now from our installed base, and that's been quite strong also. So you raised your guidance, but really only reflecting the beat in this quarter just gone. So why not race more broadly? Are you being conservative here?
Yeah, well, we raise not just for what we beat. We also raise for the full year and our guidance for Q2 is above consensus on both revenue and profitability. You know, we have really strong momentum where we said on the call that we're going to step on the gas and accelerate our rate of product introductions and the iteration on our existing products.
We feel like our competitive position is so strong and the opportunity is so significant in front of us that we should accelerate our level of investment and rate of innovation. So we feel great about it and we want to make sure we can compound at these great growth rates of over 30 percent for a while.
Anthony, I'd like to check out what you're saying on social media as much as what you said in the earnings call transcript. And you always use the phrase rapid innovation. Where are the rapid innovations? And is that something you guys are focused on doing in-house or is M&A going to be a part of your toolkit for the balance of the year?
All of our products, we want them to be the fastest, we want them to be the most convenient, to have the best selection and the best content. So we're continuously iterating on each one of our products against those four dimensions in addition to making the products better when they're used together. As an example of that, we introduced a subscription product called SoFi Plus
It's the best value in America for a financial subscription product at over $1,000 of value. You pay $10 a month for it, and it gives you access to a number of different benefits that you would not otherwise get if you didn't use that product. 90% of our existing members have signed up
of those that have signed up for the product, 90% are from our existing member base, which says people want to use more of our products that we offer, and this product makes it more accessible for them to be able to get those great benefits in using our products together. So a really encouraging sign. And against the people that are already our members that are taking out SoFi+, it's actually triggering them taking out a third product 30% of the time. So pretty strong performance from that new product, which is an iteration of
that we're constantly trying to drive across the five dimensions that I mentioned. Finally, what's your interpretation of how this administration is looking at regulation, looking at supporting the crypto industry as it relates to you? But I think fintech broadly is a bit more under the microscope, Anthony.
The early signs in the first 100 days is that it is a more favorable environment from a regulatory standpoint. It's really critical that we continue to provide a safe and secure way for our members to use our financial services products, and that is our priority regardless of regulation. So we want to have great NPS scores. We want to be a trusted household brand name.
But it does feel like the regulatory environment is going to allow us to offer more products to our members that they need. As an example, we'd love to be able to do secure lending off the cryptocurrency, which I believe it would be a great product to lower cost of debt for our members. In addition to that, potentially being able to offer a stable coin that could have some type of interest bearing element to it and being used for payments.
Anthony Noto, SoFi CEO, good to have you back with us here on Bloomberg Technology. Thank you very much. There are presentations.
And then there are Canva presentations. With Canva, you can use AI to take your presentation to the next level. You can generate dynamic slides and text with a simple prompt. You can drag and drop graphics and charts from Canva's media library and add interactive elements to plus up your deck. And with collaboration tools built in, the whole team can work together better. You'll love the presentations you can easily design with Canva. Your clients and coworkers will too. Love your work with Canva presentations at canva.com.