And so those two positive underlying trends. We’ve also seen the quality of our deposits remain strong. 90% of our deposits are from direct deposit customers and 98% are insured deposits, which means they’re not just high quality, but they’re diversified. In addition to that, our Invest business continues to benefit from the growth of our member base overall and cross buying, and we see nice trends there from an assets under management standpoint. As it relates to loans, we’re seeing unprecedented demand for unsecured personal loans. And obviously, we saw an uptick in student loan refinancing. I think the student loan refinancing trend will — that we report will be more driven by what we decide to underwrite than the actual demand. And I think you can see the same for our personal loans which has been the case for the last two years.
We’ve continue to reduce the credits that we’re willing to approve, and we’re seeing continued strong demand even in higher credits and higher quality. And so Chris, would you add anything to that?
Christopher Lapointe: No.
Anthony Noto: Thank you, Dan.
Operator: Thank you. Our next question is from Mihir Bhatia of Bank of America. Your line is open.
Mihir Bhatia: Good morning. Thank you for taking my question. I wanted to ask about the Technology segment. You saw a nice uptick in the contribution margin there this quarter. And I wanted to ask a couple of questions there. Just wanted to get some more details. A, is like, in the — what drove the uptick in Galileo accounts this quarter? And then, on the contribution margin side, is a big investment period in that segment done at this point? Like, what — where should you expect segments to trend? And as you grow internationally, is there a difference in the revenue or margin profile between a U.S. account or a Latin American account that we should be just keeping in mind as we think about modeling this business out over the next few years? Thank you.
Anthony Noto: Thank you for your question. And I’ll talk about the overall trends in terms of demand and account growth, and Chris will talk about the leverage that we’re getting there and where we are in an investment cycle, which we’ve talked about in the last couple of years. The demand within the Technology Platform segment is as robust as we’ve seen. Strategically, we pivoted away about a year, 1.5 years ago from signing up a high number of accounts each quarter that would have a low volume to focusing on larger customers that were more durable and that could not just survive in the economic cycle, but that also could it be durable through the lack of financing in the private market. In addition to focusing on larger customers that are more durable, we started to build out other verticals such as the B2B channel with the products that we have, they serve both B2C companies and B2B companies.
In addition to that, we focused on non-financial institutions that have large customer bases and financial institutions do have a large customer base as well to get to times of revenue much faster. We’ll start to see the benefits of that slowly gradually hit the revenue number over the next 18 months to 24 months. It won’t be a step functional. I don’t want to mislead anybody there, but it will be a nice, steady climb on a nice steady slope. The results of our strategic switch are really paying dividends. And right now, we’re in RFP status with a number of large financial institutions. We’ve actually won a regional bank deal, that’s one component of a larger piece of their business that will come on over the next 18 months to 24 months. But the pipeline is very strong in both financial institutions, incumbent banks and non-financial institutions as well as B2B.
And so, the growth prospects that we’re expecting there really started to come through in a much bigger way as many institutions are under pressure to upgrade their technology and to go after new growth opportunities. I’ll let Chris talk about the expenses.
Christopher Lapointe: Yeah. In terms of the declining attributable costs as well as the margin expansion that we saw at 36%, this is part in due to realizing the benefits of early investments that we’ve made in these businesses to push technological and product development and to integrate the two platforms. In addition, Q2 was elevated as a result of a few one-time items, including FX and country-related taxes. And then in Q3, we benefited from lower comp and benefits as a result of maxing out on payroll taxes for the year and a few other one-time items. As far as the margin profile looking ahead, you can expect continued strong margin performance as we’ve already made so many investments to integrate the two businesses and position the combined entity to leverage demand from a broader mix of clients with more durable revenue streams. Overall, we’re expecting margins to be in the upper 20s to 30% in the near term.
Operator: Our next question comes from Kevin Barker of Piper Sandler. Your line is open.
Kevin Barker: Good morning. Thanks for taking my question. I just wanted to follow up on some of the movements on the balance sheet, particularly the loan sales. We saw capital ratios come down a bit, but it seems like this $2 billion forward flow agreement will release some of that. And also tangible equity grew $68 million. Just given these factors, where do you expect capital ratios to rift over the next couple of quarters? Particularly, if we start to see a larger amount of loans come on balance sheet due to forward flow agreements. Thank you.
Christopher Lapointe: Yeah. Hey, Kevin. So our total capital ratio, you’ll see in the disclosure is 14.5%, that’s 400 basis points above our 10.5% regulatory minimum. We aren’t currently providing a specific outlook in that ratio. But what I would say is that there are a number of tailwinds that will help bolster our capital ratios. First, we have a growing book value — we’ve been growing book value for the last five quarters in a row and expect to sustain that going forward, particularly as we reach GAAP profitability in Q4. As you mentioned, $68 million of tangible book value growth this past quarter and 171 over the course of the last 12 months. Second, we have a robust demand and pipeline of loan buyers that solid execution levels.
As I mentioned in my prepared remarks, we are selling $475 million in Q4 at a favorable execution. And we have a $2 billion forward flow lined up at favorable execution. And then third, the size of our loan book and the relatively short duration of personal loans, in particular, the amortization on a quarterly basis is quite material now. Between our personal loans business and the student loan refinancing business in quarter three, amortization or paydowns was $2 billion or $8 billion on an annualized basis. So those three factors combined are going to enable us to continue to originate high quality loans while maintaining healthy total ratios.
