SoFi Technologies, Inc. (NASDAQ:SOFI) Q1 2023 Earnings Call Transcript

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Chris Lapointe: Yeah. Sure. John, I can take that one. So, what I would say is, we aren’t providing specific guidance at the product level, but we are expecting to continue to see modest growth in our personal loans business. This past quarter, we reached 8.2% market share, that was up from 5.8% last quarter and (ph) a year ago. So there is significant headroom to continue to grow that business. But as we’ve said in the past, we are going to continue to be prudent and thoughtful about how we approach that business and won’t overextend ourselves. So expect to see continued modest growth in that business similar to what you seen over the course of the last several quarters. On student loan refinancing, our guide and outlook has not changed from our Q1 earnings call or our Q4 earnings call.

What was contemplated in our full year guide is that, the moratorium would end on June 30. And then people would go back into repayment 60 days thereafter, which means that we would see elevated demand for student loan originations in Q4, albeit at a lower monetization level given where interest rates are. We do think that there is still a large TAM that we can go after, given where we can price the loans today. So we do expect to see an uptick in demand, but probably not to the levels that we saw back in Q4 of 2019. Then in home loan origination, Anthony just touched on it. We do expect to see an acceleration in originations given the acquisition of Wyndham Capital. Right now we have a very, very low market share. So there’s a ton of headroom to continue.

Operator: Thank you. Our next question comes from the line of Eugene Simuni with MoffettNathanson. Your line is now open.

Eugene Simuni: Thank you. Good morning, guys. Congratulations on great results. I wanted to go back to the trends in your deposits. Great to see very strong growth in Q1, but can you elaborate a little bit on the trend in March since the beginning of the bank crisis? And maybe if you can share anything on what are the trends in April? And just maybe as a broader question here, how is the behavior of your bank customers changed at all since the bank crisis? And how you’re adjusting to that? I’d love to hear your thoughts on that. Thank you.

Anthony Noto: It’s another quarter since opening the bank about a year ago in February of continued strong performance of our SoFi Money account, which is checking and savings as you know. The strategy has really played out in space throughout the year offering high interest rate on checking and very high interest rate on savings up to 4.2% now. If you do direct deposit with us, getting all the other member benefits that we provide for you beyond that free certified financial planner discounts on loans, our broad based rewards program, all of which now bundle into SoFi Plus has really helped us drive not just strong adoption of SoFi Money, but a lot of engagement as it relates to both deposits and spending. We couldn’t be more happy with the trends we’re seeing in both of those.

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