By Sandeep Bishnoi
16 September 2023, 01:25 PM
Anthony Noto, the CEO of SoFi, a digital banking and personal finance company, spoke with CNBC’s Jim Cramer about the significant growth the company has experienced since obtaining its banking license. Noto emphasized that SoFi has been effectively capturing market share from major banks and has consistently added more than $2 billion in deposits each quarter since acquiring its bank license. He also expressed confidence in the company’s ability to sustain this growth trajectory.
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SoFi, originally known for its involvement in student loans, transitioned into a full-fledged bank last year. In the second quarter, the company’s report revealed impressive results, including the addition of over 584,000 new members during that period, contributing to a total membership base of more than 6.2 million—an impressive 44% year-over-year increase. Furthermore, SoFi’s stock experienced a substantial 20% surge in a single trading session following the release of its earnings report, as reported by FactSet.
Noto attributed SoFi’s success to its attractive mobile-first technology and a range of financial products that resonate with customers. Notably, the company offers personal loans designed to help individuals pay off credit card debt and options for refinancing student loans.
Noto explained that SoFi’s appeal lies in its ability to offer solutions for individuals looking to reduce their monthly payments on student loans. These solutions can be achieved through either lower interest rates or extending the loan term, with SoFi providing customers with the flexibility to choose the option that best aligns with their financial goals. This approach has resonated with customers, making SoFi a compelling choice for those seeking to improve their financial well-being.