After surpassing 150 million total enabled accounts in the first quarter of 2024, Galileo Financial Technologies continued growing its end-user base during Q2, Galileo parent company SoFi Technologies announced in its most recent earnings report, released on July 30, 2024.
As of the close of this year’s second quarter, there were 158.5 million total enabled client accounts across SoFi’s Technology Platform segment–which is made up of Galileo and the Technisys cloud-based core banking services platform–a 23 percent year-over-year increase from 129.4 million in Q2 2023. Meanwhile, second-quarter net revenue for the Technology Platform segment was $95.4 million, up 9 percent year-over-year, SoFi reported.
“Our tech platform is a center of innovation as we add capabilities to our already comprehensive offering,” SoFi CEO Anthony Noto said during the company’s earnings call. Noto went on to cite key recent Tech Platform product launches, including expanding Buy Now, Pay Later to include post purchase, expanded wire transfer capabilities for fintechs and the extension of AI-driven transactional fraud defenses to non-processing partners.
“We also advanced the quality of our managed service in the cloud and introduced 3DS, which adds another layer of security to digital card transactions,” Noto added. “These improvements ensure our modern cloud-based platform will continue to serve the needs of brands, fintechs and global financial institutions alike.”
The SoFi CEO noted continued progress in the company’s strategy to attract enterprise clients with large existing customer bases, citing a “robust’ pipeline of interest that includes “U.S. and international financial institutions, along with major consumer and commercial brands.”
See SoFi’s full second-quarter results for more information.
Is SoFi’s Galileo the Future of Embedded Finance?
The embedded finance sector is experiencing unprecedented growth, projected to continue growing at a compound annual growth rate (CAGR) of 16.8% through 2029. Leading the charge is Galileo, the B2B financial services arm of SoFi Technologies.
Debit Rewards Surge as Consumers Shift Spending Preferences
Debit rewards programs, which were significantly reduced by as much as 50% immediately after the Durbin Amendment capped fees on debit card payments, are now seeing new life. This comeback is fueled by the continued rise of debit as a preferred spending method.
Galileo Transforms SoFi Into the Backbone of Embedded Finance
Galileo, the B2B financial services arm of SoFi Technologies, Inc. SOFI, is emerging as a key engine of growth in the rapidly expanding embedded finance market. By offering seamless payment and lending integrations, Galileo enables financial and non-financial firms to embed banking capabilities directly into their platforms.
Virtual Cards Are Gaining Ground. Here’s What Banks Must Do Next
This shift highlights growing comfort with digital-first payments. But while usage is climbing, many banks and financial institutions still struggle to explain why virtual cards matter and how consumers can benefit from them.
One-Tap Payment Switch Gives Banks the Edge in Account Primacy
Prashant Shah, VP of product management at Galileo Financial Technologies, challenged the PYMNTS audience to remember a recent bill paying experience where updating a subscription meant having to chase down Netflix or Amazon — even the local power company — to log into each individual site to update payment details.