SoFi Cash Accounts Surge 54% as Product Monetization Continues to Advance

SoFi Technologies“Cross-selling continues and certain trends appear to be taking hold as the interest rate environment becomes more favorable.

Members are accessing more products through the company's platform and momentum is increasing SoFi money Deposits continue to be supported by direct deposit members.

After rising more than 50% in the past three months, SoFi shares sent investors a 6% loss in early trading on Tuesday (October 29).

“Monetization continues to improve across all products,” with annual revenue per product of $81, up 52% ​​year over year…” the company said in the third quarter Merit Released on Tuesday.

Total deposits increased to $24.4 billion, with over 90% of SoFi Money deposits coming from direct deposit members. SoFi Money accounts as part of the entire “financial services products”.” came to 4.7 million, until 54% compared to the previous year.

Management said in a conference call that financial services accounted for more than a third of the company's consolidated revenue as a percentage of revenue. CEO Anthony Noto said the segment is a $1 billion business based on annual revenue.

Growth of new members

New member growth increased by 35% year after yearto 756,000, and the total installed base was 9.4 million. Galileo accounts increased by 17%.

“The one-stop shop continues to attract reciprocal purchasing behavior from our members,” said Noto, as 32% of new products were opened by existing memberswhile 20% of new members opened a second product on the platform within the first 30 days.

Supplementary materials showed that net sales of the company's technology platform grew 14% to $103 million.

“We continue to see a strong pipeline of potential partners looking to modernize their platforms,” said Noto, who later added during the call, “We believe there remains significant potential in both product growth and monetization.”

Record personal loan originations totaled $4.9 billion in the third quarter of 2024, increasing 26% year-over-year, the release said. Student loan volume in the third quarter was $944 million, increasing 3% year-over-year.

“We took advantage of the improving interest rate environment in the quarter, our improving credit trends and strong performance across credit products,” Noto said.

In the third quarter, the company's annual debit spend was $10.3 billion.

“We will soon be improving our self-service transfers, similar to the launch cellwill further expand members’ ability to move money,” Noto said during the call. “In our member team, we are testing a new Cash Coach product in beta, which analyzes members’ overall cash from their financial products at SoFi and beyond.”

CFO Chris Lapointe said in the conference call: “After seeing the peak in credit trends in the first quarter, we have seen continued improvement in personal loans.”

The company's 90-day balance sheet personal loan delinquency rate was 0.57%, down from 0.64% in the second quarter. The annual personal loan amortization rate fell to 3.52% from 3.84% in the second quarter.

For the full year, the company raised its adjusted revenue guidance to $2.53 billion to $2.55 billion, which would represent a 22% to 23% year-over-year increase from its previous forecast of 17% to 19% growth. Loan growth on the balance sheet is expected to be “modest in dollar terms,” ​​management said on the conference call.