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Charles Curran's avatar

Great job as always. If economy is good any reason they couldn't grow loan business at 30% per year. Is thought that they would run up against capital constraints?

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Alpha Finder's avatar

Hi, Isn't the growth rate too small until 2027? As everyone knows, the bank's deposits serve as a source of revenue. Their deposit grew 154% year-over-year in 2023 and is expected to grow over 80% this year. I believe they are compelled to grow unless they face losses due to the interest paid to savings account holders. Assuming they are not mismanaging (which I don't believe they are), the fast-growing deposits should drive further growth in loans or financial services. In the long term, I think the growth rate of deposits and revenue should be equal-paced. Currently, the company has experienced extremely fast growth, so they need some time to stabilize and reorganize their current loan portfolio. However, starting from Q3, revenue growth should follow deposit growth, which should increase SoFi's growth rate. Could you please share your thoughts on the deposit growth?

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