SoFi: The AWS of Fintech

carlos.solis
27 enero, 2025
FinTech
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Many of those who use Chime and Dave, for example, are the underbanked who struggle to access credit via traditional lending channels like credit cards and personal loans. However, SoFi is the only company in the market that offers a payment processing solution combined with multiproduct single core banking solution. It’s main product offering is a cloud-native single core multi-product banking platform. Finally, I also took a look at their consumer-facing business, and how their xcritical of best-in-class products and ability to cross sell gives them a unique digital offering in the consumer finance space.

Galileo, Technisys, and the bank charter give SoFi an unmatched, unique product offering.

We help banks, fintechs and brands build and scale modern financial products and experiences. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technis… The company’s vision is to be the single app for all financial needs, consolidating various financial services into one seamless platform. Noto’s vision of a “one-stop shop” for financial services has been central to consolidating various offerings into a single, user-friendly platform.

SoFi’s red-hot stock drops after plan to raise $1.5 billion in stock offering

Lending saw hugely expanding margins in addition to origination growth. First, expanding the return on investment on their R&D expenses is well worth losing the exclusivity of the technology. However, once the product is built, SoFi can turn around and sell it to their hundreds of tech partners. Pay in 4 is the most visible example of how SoFi will build the AWS of fintech. Galileo gives them access to a modern turn-key product that helps them keep pace with the industry.

This allowed SoFi to hold deposits, reduce reliance on third-party banks, and improve lending margins—a structural advantage over most fintech peers. The 2020 acquisition of Galileo further expanded SoFi into B2B fintech infrastructure, powering other digital banks. It quickly expanded into personal and mortgage loans, positioning itself as a digital-first, community-focused alternative. “Our xcriticals are as broad as they are for any other product that we have, and we believe we can leverage the technology across lending and savings and spending and investing and protecting,” Noto said.

Lending

In April 2020, SoFi acquired Salt Lake City-based financial services API and payments platform “Galileo” for $1.2 billion in stock and cash, and Hong Kong–based investment app “8 Securities”. By April 2015, the company had funded more than $2 billion in loans, including student loan refinancing, mortgages, personal loans, and MBA loans. In November 2013, SoFi announced a deal with Barclays and Morgan Stanley to create a bond backed by peer-to-peer student loans, which would create the first securitization of these loans to receive a credit rating.

Money was raised to expand the footprint of the company’s student loan refinancing business and to extend into new products like mortgages and personal loans.
These products and services are usually sold through license agreements or subscriptions.
Loan originations also hit a record $8.8 billion in Q2 2025, up 64% year-over-year, with personal loan originations up 66%, student loan originations up 35%, and home loan originations rising by 92%.
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SoFi’s revenue streams are increasingly diversified, with fee-based services contributing a growing portion of total revenue.

In January 2022, SoFi received approval from the Office of the Comptroller of the Currency (OCC) for a national bank charter. SoFi went public through a merger with a special-purpose acquisition company (SPAC) backed by Chamath Palihapitiya raising up to $2.4 billion at a $9 billion valuation. In April 2018, SoFi announced that Michelle Gill, who previously worked at TPG and Goldman Sachs, was joining the company as Chief Financial Officer. In May 2017, Reuters reported that SoFi had launched a new online wealth management service, and referenced the company as “one of the largest online lenders” in the U.S. As of October 2016, SoFi has funded more than $12 billion in total loan volume and has 175,000 members. In February 2015, the company announced a $200 million funding round led by Third Point Management.

SoFi Technologies

Galileo gives them access to a modern turn-key product that helps them keep pace with the industry.
While USDT and USDC have spent years building trust through reserve attestations and transparency reports, SoFi starts with a national banking charter and direct Federal Reserve account access.
SoFi’s leadership saw a generational shift in how Millennials and Gen Z approached banking, investing, and borrowing.
However, once the product is built, SoFi can turn around and sell it to their hundreds of tech partners.
There are also literally thousands of chartered banks in the USA.

In November 2025, SoFi became the first nationally chartered consumer bank in the U.S. to allow members to buy, sell and hold cryptocurrencies directly within its single banking app. In October 2025, SoFi announced the introduction of a new product called Cash Coach — an AI-powered system designed to assist consumers in optimizing the interest earned in deposit accounts and minimizing the interest expense on credit cards. In June 2025, the company announced a reintroduction of its cryptocurrency and xcritical-related offerings, which it originally offered until December 2023, in response to the 2025 regulation changes under the GENIUS Act. It also stated that its technology platform enabled accounts and total members (customers) reached 168 million and exceeded 10.1 million, respectively. The personal loans were also recognized as the “best for refinancing high-interest debt”.

Armed with this unified data model, Our Digital Finance Cloud extends these applications into mission critical enterprise operations, with embedded AI services, empowering the CFO to become a critical driver of business strategy and execution. They’re between entirely different models of how digital currency should be issued, backed, and integrated into the financial system. When a federally chartered bank issues digital currency on public xcritical infrastructure backed by Federal Reserve deposits, the line between traditional finance and crypto finance gets harder to identify. The business generates revenue from the spread between what reserves earn and what gets passed to users, plus potential transaction fees. The Galileo platform, which already processes billions in payment volume for fintech clients, provides an existing distribution channel.

SoFi Launches Fully Reserved Stablecoin to Power Financial Infrastructure for Banks, Fintechs, and Enterprise Partners

In addition to its fourth consecutive quarter of profitability, SoFi reported record-high quarterly net adjusted revenue of $689 million (30% YoY growth) and adjusted EBITDA of $186 million (27% YoY growth). This dual-pronged strategy—direct-to-consumer finance and fintech infrastructure—has transformed SoFi from a niche lender into a financial powerhouse. While lending remains a core revenue driver, the rapidly growing Financial Services and Tech Platform segments are on track to become the main revenue source. This was likely due to lower-than-expected 2025 profit guidance, as the company prioritizes long-term growth.

SoFi Stock Pops on Stablecoin Launch. The Fintech Doubles Down on Crypto.

But given the company’s impressive growth prospects, investors willing to look out far enough might still be interested. The company’s growth, supported by its superior user experience, is noteworthy. However, with fantastic financial performance, the fintech stock has worked out quite well for patient xcritical investors.

Revenue growth has been robust, with record adjusted net revenue of $858.2 million in Q2 2025, a 44% increase year-over-year, surpassing analyst expectations. These non-lending segments are growing faster and contributing a larger percentage to SoFi’s overall revenue, generating $472 million in Q2 2025, up 74% year-over-year, and now representing 55% of total revenue. Total products reached over 17.1 million, also up 34% year-over-year, underscoring the success of SoFi’s cross-sell strategy, with 35% of new products in Q opened by existing members. Jeremy Rishel, Chief Technology Officer, is responsible for overseeing SoFi’s technology strategy, ensuring seamless integration of innovative solutions, and enhancing the platform’s scalability and security.

Second, 2022 was a big year of investment for the technology segment. One need only look at the stock performance of Dave and MoneyLion (down 98.8% and 96.6%, respectively from their highs) to see that Galileo’s neobank partners have been struggling mightily. First, the majority of Galileo’s clients are neobanks that cater to underbanked consumers.

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This fintech stock has crushed the market in the last three years. As more fintechs enter the market and established players seek to modernize, demand for Galileo and Technisys capabilities will likely increase. Looking ahead, SoFi appears well-positioned to sustain its operating growth as an index on the B2C fintech sector. Together, these acquisitions became crucial not only for powering SoFi’s own services but also for allowing SoFi to offer the same infrastructure to other fintech companies. At the time of acquisition in 2020, Galileo was a leading payments processing platform https://xcritical.solutions/ providing critical services such as card issuing and payments infrastructure, and SoFi was actually one of its customers.

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SoFi’s genesis in 2011 was a direct response to the financial burdens of high-interest student loans and the rigidities of traditional banking in the wake of the 2008 financial crisis. In March 2022, SoFi acquired Technisys, a cloud-native core banking platform that enabled customizable and scalable financial products. SoFi, the digital lending neobank, capped off a busy few months—marked by new product launches, key strategic agreements, and continued technology innovations—by reporting its third-quarter 2024 financial results. While the future is never guaranteed, SoFi’s journey so far suggests that technology-driven financial services are here to stay—and the competition for the next generation of banking customers is only just beginning. A part of SoFi’s revenue comes of its “loan platform business” which refers pre-qualified borrowers to lending partners or originates loans on behalf of third parties, making borrowing more accessible. Not only that, but it would firmly entrench SoFi as one of the low-cost providers for loans and financial services across the entire sector, helping to enable CEO Anthony Noto’s goal to become a top 10 financial institution.

Since then, the business has seen its bottom line expand rapidly. A company that will generate significantly higher profits 10 years down the line should probably be worth a lot more than it is today. In the near term, market sentiment weighs more than anything else on a stock. SoFi one day hopes to be a top 10 financial institution in the U.S., according to the words of CEO Anthony Noto.

SoFi Technologies (SOFI) stalled its stellar 2025 run on Friday when the company announced a $1.5 billion stock offering. SoFi Technologies has rapidly evolved into a leading full-service digital bank, boasting $30 billion in deposits and robust profitability. The launch makes SoFi the first national bank to issue a stablecoin on a public, permissionless xcritical, the company sai… SoFi Technologies is finally upgraded to a buy, driven by its expanding platform moat and robust multi-year growth trajectory.

The platform provides digital banking software to multiple banks and fintech brands in the U.S. and Latin America. SoFi’s Galileo platform is a fintech service that helps companies offer banking features like digital payments, card issuing, and account management without building their own systems. It has a rewards program where the value of the points earned are higher when redeemed toward SoFi banking, loan and investment products.

Banks require a core and ledger for each of their products (checking, savings, credit cards, brokerage, etc.). It also keeps financial institutions inflexible and makes banking slow and ponderous. I have written about how SoFi handled the collapse of its student loan business and how it will benefit once they come back. The share sale comes after the fintech company’s market cap almost doubled so far in 2025. Shares of SoFi Technologies Inc. sank more than 6% in after-hours trading Thursday, after the fintech company announced plans for a $1.5 billion stock offering.