SoFi Technologies, Inc. (NASDAQ:SOFI) Q4 2023 Earnings Call Transcript

Our Technisys capability we bought for one big reason. We have a lot of products at SoFi. Those products all have different operating systems. We want them to run on one platform, one operating system, and we want that system to be extensible to new products that don’t even exist today. In the Financial Services industry, many banks, and financial companies have many cores. In fact, they probably have more cores than products, because many of them were aggregated roll-ups of other banks that had different cores for checking and savings. Not to mention they have different cores for products like credit card versus checking and savings, or even for loans. And so Technisys enables a company to have one platform running different cores for different products, and it’s extensible into different areas.

One example of that is SoFi’s Buy Now Pay Later. We launched Buy Now Pay Later with Galileo and Technisys and SoFi. It was the first product on all three technologies and we did it in a very short period of time and it’s a great product that is easy for the consumer to use and can be authorized right in the application itself. And so that is another driver of the overall revenue streams. We also do services for digital solutions. We do build front ends for apps in addition to other types of digital services as it relates to the app and product development. So there’s no one answer to your question other than more partners, more accounts and more products per account, which drives the revenue from those factors that I just laid out. That ends our prepared remarks and questions.

I wanted to finalize our comments today by just sharing with you some final thoughts. I’ll finish here by saying how proud I’m of our team’s relentless ability to not just persevere through the disruption and volatility of the industry throughout the year, but to deliver record results. I couldn’t feel more blessed by more than 7.5 million members that have been so critical in making our vision of being a one-stop shop for all your financial needs become such an amazing reality. The benefits of our strategy resulting in a uniquely diversified business that is unmatched by any digital only provider in our scale, capability, and competitive advantages, not only positions SoFi to be the winner that takes most in the sector transition of Financial Services to digital, but also provide greater durability through a market cycle.

I’m excited about where we are today, and even more excited about where we can go from here. Thank you for dialing into our call and we look forward to talking to you next quarter.

Operator: Good-bye. Thank you everyone for joining today’s call. You may now disconnect your lines and have a lovely day.