SoFi Technologies, Inc. (SOFI) UBS Financial Services Conference (Transcript)

Company and Industry Overview * Company: SoFi Technologies, Inc. (NASDAQ: SOFI) * Industry: Fintech, Payments, Lending, and Financial Services Key Points Financial Guidance * 2024 Growth: * Tech platform and financial services to grow 50% YoY, reaching 50% of total revenue. * Lending to grow slightly slower, with a conservative approach due to macro uncertainty. * 3-year CAGR expected to be 20-25% across the entire business. * 2023-2026 Outlook: * Financial services to grow 50% CAGR, driven by deposit growth and net interest income. * Tech platform to grow 25% CAGR, driven by existing and new customers. * Lending to grow 20-25% CAGR, with a conservative approach in 2024 and acceleration in 2025-2026. Lending Segment * 2024 Lending: * Revenue to be 92-95% of 2023 revenue. * Personal loans originations flat to down. * Student loan refinancing to grow modestly. * Home loans to grow correlated with rates. * 2025-2026 Lending: * Expected to see acceleration in growth once macro visibility improves and rates stabilize. Financial Services * 2024 Financial Services: * Expected to grow 75% YoY. * Deposit growth to continue, with 65% of loans funded by deposits. * Net interest income (NIM) margins to remain healthy, north of 5%. * Tech Platform: * Expected to grow 20% YoY in 2024. * Shifted focus to larger financial institutions and brands with large installed bases. * Expansion in 17 different countries across North America, Canada, and South/Central America. Other Key Points * Brand Awareness: * Unaided brand awareness has grown from 1-2% to upper single digits over the past few years. * Investments in brand and marketing have driven efficiency and cross-buy. * Credit Quality: * Expect losses to return to pre-pandemic levels of 7-8% life of loan losses in early/mid 2024. * Proactive credit cuts have been made to maintain healthy loss rates. * Capital Ratios: * Risk-based capital ratio to remain north of 14% in 2024 and 2025. * Well above regulatory minimum and operational requirements. * Bank Charter: * Bank charter has provided a sticky source of low-cost funding for loans. * Deposits have a cost of funding 200 basis points less than alternative sources. * Bank charter has opened doors for additional products and services.