- Key insights: SoFi in the third quarter launched Cash Coach, an AI-powered customer insights engine that helps consumers optimize earned interest in deposit accounts and minimize interest expense on credit cards.
- What's at stake: Neobanks are seeking new ways to capture deposits from big banks.
- Forward look: SoFi plans to roll out a "more comprehensive" SoFi Coach that incorporates all areas of financial services.
Neobank SoFi has rolled out an artificial intelligence-powered consumer insights engine as the neobank looks to capture more deposits from big banks.
SoFi launched Cash Coach, a consumer-facing
"If a member is earning just two lousy basis points of interest on
Cash Coach is the first step in a broader rollout of its AI coaching products. Next year, the fintech plans to launch a "more comprehensive" SoFi Coach that incorporates all areas of financial services, including wealth management.
"For example, they could ask the SoFi coach questions like, 'How has my credit score changed? How can I reduce my cost of debt? How much do I spend on subscriptions? How diversified is my portfolio? How is my investment compared to others my age?'" Noto said.
Eventually, SoFi Coach will be able to suggest investment and lending options to choose from, help consumers set up and track goals, and cancel subscriptions and optimize reward points.
"Ultimately, Sofi coach will supercharge financial services productivity loop and lead to a deeper relationship that drives a higher lifetime value," Noto said.
SoFi is hoping to further capitalize on its one-stop-shop model, which has been gaining traction over the last three months. About 40% of new products were opened by existing SoFi customers, its highest level since 2022.
Q3 earnings beats estimates
SoFi posted its eighth
GAAP net income also beat expectations at $139.39 million, or 11 cents per diluted share, compared with analysts' consensus of $105.68, or 9 cents per diluted share.
Fee-based and non-lending revenue helped prop up profits in the quarter, SoFi CFO Chris Lapointe said during the call. Fee-based revenue across all segments grew 50% year over year to $409 million, and non-lending generated $534 million in revenue, an increase of 57%.
Financial services revenue hit $420 million, up 76%. Net interest income was $585.1, an increase of 36% compared to the same period last year.
Loan originations also hit a record in the quarter, rising 57% from a year ago to $9.9 billion. Personal loan originations tallied $7.5 billion, an increase of 53%, while student loan origination came in at $1.5 billion, up 58%. Home loans grew 93% to $945 million.
Loan growth came as the neobank posted a 35% increase in members to 12.6 million members. SoFi customers were signed up for a total of 18.6 million products, an increase of 36%. SoFi has been releasing a slew of new products, including a
Encouraging quarter
Analysts at William Blair were "encouraged" by SoFi's progress during the quarter, including a record 900,000 quarterly new member adds, "strong and improving" credit metrics, sustained momentum in lending, and fee revenue growth.
"We believe powerful loan demand, product expansion in student lending and home lending, and new offerings, like crypto trading and remittances, will power 25%-plus 2026 revenue growth," Andrew Jeffrey said in a research note.
Jefferies analyst John Hecht also said that the banks "diversified business model" was producing good results. "SoFi is well-positioned to sustain growth, with opportunities in crypto, stablecoin, and student / home loan refi amid a rate-cut environment," Hecht said. "These initiatives support its shift to a capital-light model and pursuit of a constructive ROE target. "
Shares of SoFi were trading at $31.69, as of 3:28 p.m. in New York, an increase of 5.6%, or $1.69, from market open.
