Anthony Noto, CEO of digital banking and personal finance company SoFi, told CNBC’s Jim Cramer the company has been able to grow immensely since it received its banking license.
“We’re really stealing share from the big banks, and so we’ve been able to add more than $2 billion of deposits in each quarter since getting our bank license, and we reported in Q2, we remain confident that we can add $2 billion plus each quarter, and we’re on track to do that,” he said.
The company has its roots in financing student loans but was licensed to become a bank last year.
SoFi’s second-quarter report showed the company had gained more than 584,000 new members during the quarter, with more than 6.2 million total members, up 44% year over year. SoFi’s stock also rallied 20% in a single session post-earnings, according to FactSet.
Noto added that SoFi is attracting customers with its mobile-first technology and financial products such as personal loans to pay off credit card debt, as well as student loan refinancing.
“If you have a student loan, you want to lower your monthly payment, you’re able to do that either via a lower rate or extending the term,” Noto said. “There are always trade-offs with those decisions, but we’re giving people that opportunity to get their money right through a variety of different vehicles, and that’s very appealing to them.”
