SoFi Technologies, Inc.

Market Expansion Strategies

• Diverse Revenue Streams:

  • Emphasis on growing fee-based revenue, which accounted for $970 million in 2024, representing a 74% increase year-over-year. This was driven largely by origination fees, loan platform business, referrals, interchange, and brokerage.

• Loan Platform Business (LPB):

  • Recent agreements with firms like Fortress (a $2 billion partnership) and Blue Owl Capital Funds (a $5 billion agreement) demonstrate the expansion of SoFi’s loan platform, which leverages partnerships to originate loans without adding to its balance sheet risk.
  • LPB generated $63 million in fees for Q4 alone, showcasing solid growth and a diversified approach to meet borrower demands while minimizing risk.

• Growth in Financial Services:

  • The Financial Services segment has expanded significantly, focusing on high-margin referral fees and marketplace operations that connect members to third-party services, while improving product offerings like SoFi Plus and investment products.
  • SoFi Money, a key product, has surged from 646,000 to 5.1 million products since 2020, highlighting the effectiveness of its customer acquisition strategies.

• Broader Awareness Initiatives:

  • Increasing brand awareness through marketing campaigns and partnerships, such as the TGL partnership. This aims to enhance reach and stimulate interest in SoFi’s offerings among potential new clients.

• Investment in Technology:

  • The Tech Platform has been pivotal, with a goal of expanding client bases by providing technological solutions for financial products, thereby increasing revenue from segments like brokerage and API services.

• Product Expansions & Enhancements:

  • Plans to launch SoFi Plus and enhance offerings within SoFi Invest indicate a commitment to expanding both product range and market share. Investments in alternative assets and new services aim to broaden appeal among diverse consumer segments.

Outlook

• SoFi plans to continue enhancing its product suite, aiming for a compound annual growth rate in lending at mid-teens from 2023 to 2026, with strong projections for its Financial Services and Tech Platform segments.
• Expected growth in membership base by 28% in 2025 supports the strategy to penetrate new markets and increase member engagement across multiple product lines.

SoFi Technologies* appears well-positioned to capitalize on new market opportunities through diversified offerings, strategic partnerships, and a robust focus on customer engagement and brand building.*