SoFi remains committed to investing in its tech stack to gain customers and to provide that tech to other FIs. 

“Our one-stop shop strategy is stronger than ever, further accelerating our year-over-year growth,” Chief Executive Anthony Noto said during the company’s second-quarter earnings call today.

The San Francisco-based bank added a record 850,000 new members in the quarter, increasing total members by 34% YoY to 11.7 million, he said. 

The company sold 1.3 million products and services to customers during the quarter, with 35% purchased by existing clients, Noto said.  

“We have proven once again that our strategy is successful in driving new members to SoFi and getting existing members to do more with us,” he said. 

The company’s investment in its tech stack has added customers and helped SoFi provide its tech services to other FIs, Noto said. 

The bank reported financial services and technology platform adjusted net revenue of $472 million, up 74% YoY. 

THE BIG PICTURE: The $32 billion bank is preparing for an “unprecedented point in time with two technology super cycles taking place, crypto and blockchain, as well as AI,” Noto said. 

“As a tech-forward, digital one-stop shop, we are uniquely positioned to capture the opportunities presented,” Noto said. 

During the second quarter, SoFi launched: 

• Self-serve international money transfers, which will allow members to seamlessly and securely transfer money to people in dozens of countries; 

•  Crypto currency trading and investing capabilities on its app; 

• Enhanced back-office processes including dispute resolution and filing of suspicious activity reports; and 

• Cash Coach, an AI-driven tool that helps customers look at their cash holdings at SoFi and elsewhere and “tell them how much you actually have, how little you might be earning at other institutions, and how you can optimize your cash to drive a better return,” Noto said. 

Similarly, PayPal is enabling clients to use crypto for cross-border payments, according to the company’s earnings call today. 

BY THE NUMBERS: In Q2, SoFi reported: 

• Adjusted net revenue of $858.2 million, up 43% YoY; 

• Net income of $97.3 million, up 11% YoY; and 

• Noninterest income of $169.2 million, up 356% YoY. 

OF NOTE: The company is ramping up hiring in crypto-related industries to improve its offerings, Noto said. 

“We’d like to also introduce a stablecoin [and] we’re really happy that the Genius Act was passed,” Noto said, referencing the bill that promotes the creation of stablecoins in the U.S.

The Office of the Comptroller of the Currency has put out an interpretive letter that allows for banks to launch stablecoins, which gives SoFi an edge over others, he said.

SoFi wants to be mindful of how it launches the stablecoin product and how it’s differentiated in the marketplace, Noto said.  

“So, we’re not going to rush to get there, but we definitely have a head start, because we already have the bank license,” Noto said. 

MARKET REACTION: Shares of SoFi (NYSE: SOFI) were up 6.57% from market open to $22.40 as of market close today. SoFi has a market capitalization of $24.76 billion.