SoFi CEO Anthony Noto Reveals MASSIVE New Growth Plans │ JPMorgan Interview Breakdown

Sure. Now that we are able to offer crypto again, which we're doing and buy, sell, and hold 30 different coins and have launched our own stable coin, payment stable coin called SoFi USD, we've now kind of transitioned from a one-stop shop to what we like to call a digital financial everything app. And the reason why we've made that transition is that we've reached incredible scale. 15 million members, 22 million products. We're growing at a really high rate. We grew revenue last quarter at 41% following 35% growth in 2025 and over 35% CAGR over the last 5 years and it really reflects just the breadth of our offering. Our mission is to help people achieve financial independence, which means they've reached the point in time where they have enough money to live their dream, whatever that dream may be. The size family they may want to have, the career they may want to have, where they want to live, the size home they want, when they want to retire. And the only way to really deliver on that mission is to help them borrow better, save better, spend better, invest better, and protect better. So, you need this broad swath of products and hence the concept of the digital financial services everything app. I'm very proud of the fact that we've gotten to the point where 85% of our products are non-lending products. Lending products are really critical. In fact, they drive the highest revenue per product and that helps us drive our competitive advantage and that we have the best lifetime value, the best unit economics, which allows us to give value back in all the other products that we have in better interest rates on checking and savings, lower interest rates on loans, more affordable credit cards, things like Smart Card, but then to do even more and allow people to elevate above that into something like SoFi Plus and soon to be launched subscription cancellation in addition to other bells and whistles. Like using AI-driven engines to build portfolios. And so we're at the point in time where we're really starting to see the formula work. What is the formula? We want to teach people to spend less than they make and invest the rest. 70% of the members that we have in SoFi Invest, which is over 3 million products now, are from existing members. So, we're helping people get to that point where they spend less than they make and now they're investing with us and they're using our products in a bigger and better way. We recently launched SoFi Plus, relaunched it on April 1st and have been amazed with the progress we've made so far in that. So it's a long way since 2018 when we had 600,000 members and $250 million of revenue to 15 million members now and over three and a half billion dollars of revenue last year and well on our way in 2026.

Yeah, I'd chalk it up to a few different things. One is education. A second is accessibility and then the third is emotion. When I think about education, you know, I get an email from a potential member, a mother of a daughter. The mother tried to co-sign for a loan and for some reason we didn't approve the loan. We have since approved the loan. But in the email she's basically saying, 'My daughter's trying to do the right thing and pay off her loans. She has an incredible burden. $230,000 of student loan debt and she's going to be a teacher. Why a university would ever let someone take out $230,000 of debt?' It's very admirable, the teacher. It's the lifeblood of our country. It builds the foundation of our children. Our children spend more time with teachers than they do with their parents in their lifetime quite frankly. And here's this woman who's graduated from college, which is a big accomplishment, and she's burdened with $230,000 of student loan debt on a salary that's probably $60,000. Like that's an educational problem, and she'll never get out of that hole. We can help her get out of that hole, but she's going to need a lot more help than that. There's an access problem, and what does that mean? You know, people think they have to have access to wealth advisors to invest in the stock market to invest at all. And so, it's shocking to me that, you know, my two brothers, my wife, they didn't buy their first stock until after I joined SoFi. And it wasn't SoFi stock. We made investing more accessible to them. We educated them. We gave them products that were easy to use. We pioneered fractional shares. You may want to buy what you like, like Peter Lynch often articulated. But if Amazon's $2,000, you can't buy Amazon unless you're willing to lose $2,000 on one stock, but you can buy $1 of Amazon at SoFi. You can buy $1 of Tesla. In fact, you could take $10 and buy 10 different stocks at $1 per stock. We also launched a couple of ETFs at $10 a piece that were S&P 500 lookalike ETFs that have done pretty well. And so if you tried to buy a different ETF that was an S&P 500 ETF back at that time, the lowest price point was like $250. Well, I'm comfortable spending $10 on something I don't know. It's basically breakfast out of the house. Coffee and maybe a breakfast sandwich. Why would you feel comfortable spending $250 on this thing called an S&P 500 that you've never researched, but you're more comfortable spending $10 on it? So, we made diversification, dollar cost averaging more successful. We've made IPOs more successful. Private equity more successful. We've done a couple SpaceX offerings, so private investments more accessible. And then emotion. It's hard to tell your children no. It's Christmas or a holiday or their birthday and you want them to be happy. And so you charge something or something breaks unexpectedly and emotionally you need to get it fixed, whatever it may be. And so it's the combination of education, accessibility, and emotion that puts people in a financial hole. And we want to teach them not to start in that hole to begin with with $230,000, not to buy a house that's their wife's dream house if you can't actually invest and save for retirement. You know, just being able to save allows you to stay in business, so to speak. But it doesn't allow you to get ahead. It allows you to keep up. And so we have to teach people how to invest. And we believe we have the products and we're nailing that formula. And I'm excited about the things we'll be launching this year to take it to the next level.

Yeah, we developed a loan platform business, LPB as we affectionately call it, to capture the opportunity that we couldn't capture at that moment in time. There could be several reasons for us not capturing the opportunity. First, we decline about 70% of the applicants for personal loans, and that's typically for credit reasons. Second, we can drive more demand than we have originated in personal loans over time. If you go back in time, you'll see that we're originating $2 billion of personal loans in a quarter a couple years ago, and it slowly has increased. What we found was the more we marketed, the more originations we could drive at an affordable price. But there comes a point like in 2024 where higher for longer was a risk, and I didn't feel comfortable underwriting everything that we could. So at the time we came up with this idea called the controlled volume business which then became the loan platform business. We went to managers of assets, people that had capital to put to work and asked them what credit profile they wanted, what return profile they wanted and then we negotiated with them to create loans for them by tapping into that origination volume that we didn't want to put on our balance sheet from a risk standpoint. There's also volume that we don't want to put on our balance sheet from a credit standpoint as well. And so that's how the loan platform business was born. It's achieved incredible success. We're tapping into more and more originations. We're making people that have high credit card debt more aware that they can move out of 26% interest or 25% interest into 12% interest, advertising down over a number of years and really cut their cost of borrowing quite meaningfully, which then gives them more freedom to invest or save and do other things. So, that's what drove the business. I think, you know, people were disappointed to see our loan platform business revenue down sequentially. What I would tell you is we had more demand for the loan platform business in terms of loans people wanted and to pay those fees than we could produce for them. We look at our business holistically. One of the reasons we've been able to drive diversified growth is that we're not just looking at this quarter, the next. We're looking at four to eight quarters. We're looking at where each business will be. We're allocating capital against those businesses that get us to that 30% compound annual growth that we want to have in revenue and higher in profit over time. And we're allocating our resources. So, the way we think about the balance sheet and the loan platform business is we want to make sure that we've set our company up to deliver 30% compounding growth for as long as we can in revenue. So, through 2027, which means we do need net interest income during that time period. In this most recent quarter, we announced $690 million of cash net interest income. If you just actually look at the interest income line, it adds up to that. So, it's not a surprise. That will need to advertise down over time both because people pay off their loans, and we have to replenish it with balance sheets. So, we allocated to our balance sheet what would give us good visibility of that nice revenue stream over time. The rest we allocated to the loan platform business. If we originated more that would have gone to the loan platform business and it would have been bigger. The reason why Q3 and Q4 accelerated so much last year versus Q2 is we not only fulfilled our contractual minimums but were able to satisfy some in-quarter demand that our partners wanted by spending more in marketing and getting there. And if we hadn't delivered more than a contractual minimum, you probably would have seen a nice linear growth rate from Q2 of 2025 to Q3 of 25 to Q4 of 25 and then still linear in Q1 of 26. But our partners wanted the assets. We were able to produce them at a fair price and we took advantage of that opportunity. This year is going to be more balancing act between balance sheet and LPB. One, because we have more capital. Two, we're looking out over the next eight quarters, not the last four quarters.

Sure. There's four distinct revenue streams that we'll generate revenue on over the course of the next 12 months and beyond. There's big business banking, SoFi USD stable coin, there's crypto investing, so buy, sell, and hold, and there's crypto borrowing, secured borrowing. So, let me talk about all three. First, SoFi USD. I couldn't be more excited about the prospects of what SoFi USD brings to the table. This is a stable coin we just started minting at the end of 2025. You will see it show up in the app in the course of the next couple of weeks. It is both going to be an enterprise product and a consumer product and let me walk through both. First, we're already in the business of moving money. We do 8 billion transactions a year via Galileo's debit and processing. We would like all those 8 billion transactions to occur with SoFi USD. And we think we can actually grow the amount of transactions with SoFi USD. Think about SoFi USD as a payment capability that also has a stored value and that we'll make money on that stored value based on the net interest income it generates from it sitting in a Fed master account earning Fed funds without liquidity risk, without credit risk, and without duration risk unlike any other stable coin issuer to date that has to go out and buy treasuries and has to buy securities to generate a yield. So, SoFi USD will become a payment mechanism in our SoFi technology services platform. It'll also become a new payment mechanism that allows us to sign new deals with partners. So, we signed a deal and announced a deal with Mastercard where they're going to use SoFi USD to do 24/7 settlement. 24 hours a day, 7 days a week. Today, they do 5 days a week settlement and it's not 24 hours. This will be a huge value to them and their merchants. And this will be a payment mechanism that uses the rails that SoFi USD rides on. And the capital will sit again dollar for dollar backed in our Fed master account earning Fed funds. We have other partners that will also use SoFi USD. So we launched our trading business for buy, sell, and hold different crypto tokens. We are partnering with exchanges and market makers. Those exchanges and market makers do not pass fiat back and forth. They pass stable coins back and forth. We will use SoFi USD with all our intermediaries. Big business banking. We're launching big business banking not because it was my bright idea. In fact, this was something that was built by somebody else and it went away. As we were talking to all the intermediaries in the crypto universe, they all asked us to build bank accounts for them because we uniquely at SoFi could operate in both fiat as a national bank and cryptocurrency as a national bank. And so we've launched this product on July 1. We'll launch it with APIs. So, it's completely agentic, if you want it to be agentic. And we can operate in both fiat and crypto and help all of these businesses that are crypto-centric do banking more efficiently in a more automated way 24/7. We'll also offer these same services to any other company that needs to operate in stable coins or crypto. It could be Amazon, it could be Apple, it could be Bookings.com. They're all potential clients for us. We will make money again on the stored value in SoFi USD on the NIM or net interest income in addition to the fact that big business banking will have a subscription fee. It'll have payment fees and all the bells and whistles of being a bank for large companies. And I'm super excited about that because the underlying value of that, the fuel for that will be SoFi USD. And then on the consumer side, we will uniquely offer a product that allows people to buy SoFi USD and they will get FDIC insurance and they'll get interest. When we launch SoFi USD in the SoFi app, it will say coming soon. The coming soon piece will be down the road when we create a tokenized deposit and a SoFi payment coin in one just like we have today in a SoFi banking account that has a savings account and a checking account. So today, if you put your money into your savings account and you do direct deposit with us, you get 3.8% interest. When you want to pay with that money, we move it out of the savings account into the checking account and then we send it via the debit rails. We'll do the exact same thing with SoFi USD. You'll put money into an account that is a custodial non-custodial wallet that will give you interest that will give you FDIC insurance. It will sit inside SoFi Bank. When you want to pay, you'll lose the FDIC insurance. You lose the interest rate on the tokenized deposits and the stable coin will be minted and transferred. That will help us build an asset base in SoFi USD and at some point become a point of purchase mechanism if people want to pay in that way in addition to using it for international remittance and other forms. So, SoFi USD, my hope is this is worth billions of dollars of volume over time and we're generating 1 to 2% of net interest income. So, that and the big business banking and crypto trading are three of the businesses. The fourth is as we build up an asset base under crypto investing, we'll give people secured loans against those assets. And since we're already a lender, this will be very attractive because today we do no secured lending other than a home equity line or a HELOC.

She could do it bank to bank. So if you gave her your routing number and bank account number, she could do it that way. If you have Zelle, she could do it via Zelle. If you have a phone number, she could send it to a phone number. You'll have to click on that link to then take action to put it into your bank account or preferably accept it in a SoFi account and become a SoFi member. If you have an email, she can send it to the email. You can click on that email, put in your routing number and your bank account number and it will go into that account automatically. Or again, hopefully she sends you a referral link for $25 and you sign up for SoFi Money and it goes into your SoFi Money account. So one of the things that we benefit from is we own our own technology and SoFi Technology Solutions has four strategies for different businesses it's trying to build. One of which is payment hub. The idea of payment hub is to have APIs that companies can use in a self-served way to do any type of payment. So SoFi is benefiting from that investment. So far they've built self-served wires. So you can do a wire on SoFi right now. So if money in a matter of 3 minutes to any place in the world never talking to anyone as safe as any other process. You can also do FedNow so instant money transfer and you can do a, which I mentioned, you can do debit and you can do person-to-person payment and you can do Zelle. So the technology team will keep building out the payment hub options to do any type of payment from any source to any destination, stable coins being the next area.