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?
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?
The 154% is only for financial services in 2023. The business as a whole grew 34.6% in 2023. The way SoFi breaks up their revenue, deposit growth helps financial services the most and also lending a bit, but it is only one input into their very complex business.
Enjoyed the read Chris. I literally think SoFi told us exactly whats coming next.
"new business launches or acquisitions such as small and medium business checking and savings or small medium business lending, a broader asset management business, insurance, a broader credit card portfolio, new technology verticals for the Technology Platform business or new geographies"
I have been thinking on lack of new product announcements and I believe that they have good B to C products already. I would rather have them focus on Galileo and Technisys. CC issuers, Card Management, Selling Technisys Core to a regional bank in NA I think should be a bigger part of their R and D spend. Would love your thoughts.
Would agree that focusing on Galileo and Technisys would help both the tech platform and pave the way for them to get into B2B through SMBS through SoFi as well.
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?
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?
The 154% is only for financial services in 2023. The business as a whole grew 34.6% in 2023. The way SoFi breaks up their revenue, deposit growth helps financial services the most and also lending a bit, but it is only one input into their very complex business.
Enjoyed the read Chris. I literally think SoFi told us exactly whats coming next.
"new business launches or acquisitions such as small and medium business checking and savings or small medium business lending, a broader asset management business, insurance, a broader credit card portfolio, new technology verticals for the Technology Platform business or new geographies"
I have been thinking on lack of new product announcements and I believe that they have good B to C products already. I would rather have them focus on Galileo and Technisys. CC issuers, Card Management, Selling Technisys Core to a regional bank in NA I think should be a bigger part of their R and D spend. Would love your thoughts.
Would agree that focusing on Galileo and Technisys would help both the tech platform and pave the way for them to get into B2B through SMBS through SoFi as well.