Another Strong Quarter for SoFi Technology Platform, CEO Noto Projects More Growth Ahead
July 31, 2023
Galileo Financial Technologies tallied 129.4 million total enabled accounts in the second quarter of 2023–11 percent higher than a year earlier–and that growth helped drive record segment net revenue in Q2, Galileo parent company SoFi Technologies announced in its most recent earnings report, released July 31, 2023.
SoFi’s Technology Platform segment–which includes Galileo and the Technisys cloud-based core banking services platform–earned $87.6 million in revenue during the second quarter of 2023, an increase of 4 percent year-over-year and 13 percent compared to the previous quarter.
SoFi CEO Anthony Noto attributed much of that growth to robust adoption of recently launched segment products, including the Cyberbank Konecta AI-powered natural language customer service offering and Galileo’s Payment Risk Platform, which leverages transactional data to reduce transaction fraud.
The segment also made what Noto called ”great progress” in its strategy to sign larger, more durable clients with existing customer bases–thereby driving faster time to revenue generation compared to smaller and startup companies. Galileo signed five new clients in the second quarter of 2023, all of which have existing installed bases, while Technisys went live with four new clients, SoFi reported.
“Additionally, we have a robust pipeline of ongoing discussions with potential partners with large existing customer bases across both the U.S. and Latin America, spanning both the financial services and non-financial services segments,” Noto said during SoFi’s earnings call.
Notably, the SoFi CEO projected the Technology Platform to continue picking up steam in the months ahead.
“Importantly, we expect the year-over-year growth rate in Technology Platform revenue to accelerate by Q4 with increased contribution from new partners to the platform, along with greater product adoption among existing partners,” Noto said.
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