The fourth quarter of 2022 saw Galileo Financial Technologies add 6.4 million new enabled client accounts, bringing the companies’ total combined accounts to 130.7 million at the end of Q4—a 31 percent year-over-year increase.
Galileo and Technisys–which together comprise SoFi Technologies Inc.’s Technology Platform Segment–collectively earned $85.7 million in revenue during the final quarter of 2022 and $315.1 million for the full year, SoFi announced in its most recent earnings report on January 30, 2023.
Those figures represent a 61 percent and 62 percent jump, respectively, from the prior year periods. Excluding revenue contributed from Technisys—which was acquired by SoFi in March 2022—revenues were up 13 percent and 24 percent, respectively, over the corresponding periods, SoFi reported.
Racking up new clients.
Much of the Technology Platform’s continued growth in total enabled accounts can be attributed to the steady addition of new client companies, SoFi reported.
During the fourth quarter, Galileo inked 11 new client agreements, including nine that had existing customer bases, Notably, four of the new clients were in the B2B sector and three were located outside of the U.S., marking continued progress in Galileo’s strategic focus on expanding in those areas.
Meanwhile, Technisys added 16 new clients in Q4, including its first digital deal in Mexico.
During SoFi’s earnings call, CEO Anthony Noto said the company is emphasizing targeting larger, established companies as prospective clients in 2023.
“We think the right strategy for the year is to focus on durable companies with large installed bases or well-capitalized companies that we know can make the transition and that we'll get a great return to leverage our platform capabilities,” Noto said.
Platform investments paying off.
During the earnings call, Noto highlighted the rollout of several new products during the fourth quarter, including a buy now, pay later solution designed to be offered via banks and fintech that which was the first product to be developed on the combined Galileo and Technisys platforms, as well as a direct deposit switch offering.
Those product launches are the result of the significant investment SoFi has made in building out the Technology Platform segment in recent years, observed Noto—adding that he expects that investment to start bearing fruit in earnest in 2023.
“For the first time, we're going to have meaningful margin expansion in the Tech Platform to start to leverage that investment we made,” said Noto.
“After a three year investment period in the Tech Platform, we will increasingly focus on leveraging the value of our investments through the synergies between the two product lines—Technisys and Galileo—as well as through joint product offerings, all to drive meaningful contribution profit growth relative to revenue growth,” Noto said.
See SoFi’s full fourth-quarter results for more information.
Seu programa de fidelidade pode estar ignorando seus melhores clientes
Por décadas, a maioria dos programas de fidelidade foi construída em torno de cartões de crédito. Esse alinhamento fazia sentido em um momento em que o crédito rotativo era a principal forma de estruturar lealdade e recompensas. Mas o comportamento de pagamento dos consumidores mudou, e a Geração Z está tornando essa mudança ainda mais evidente.
SoFi e Mastercard firmam parceria para habilitar liquidação com SoFiUSD na rede global de pagamentos da Mastercard
A stablecoin da SoFi, totalmente lastreada em dólares americanos, permitirá liquidação na rede da Mastercard, incluindo para o SoFi Bank, N.A. A Galileo, plataforma tecnológica da SoFi, estará entre as primeiras a oferecer aos seus clientes e aos seus bancos emissores a opção de liquidar transações usando SoFiUSD A Mastercard Multi-Token Network buscará suportar o SoFiUSD e ajudar a expandir a interoperabilidade entre ativos digitais e formas tradicionais de dinheiro
Southwest e Galileo levam recompensas direto para o débito
A plataforma da Galileo integra emissão, processamento e gestão de programas, permitindo que marcas não financeiras como a Southwest lancem cartões co-branded de forma mais rápida. A economia das recompensas no débito é diferente do crédito, mas o CFO da Galileo, Bill Kennedy, afirmou que as eficiências tecnológicas e a lealdade mais profunda tornam o modelo sustentável.
United Airlines lança o cartão de débito MileagePlus Rewards que acumula milhas ao gastar e poupar
Este novo cartão permite que os membros do MileagePlus acumulem milhas por meio de compras do dia a dia e saldos de conta elegíveis. Disponível agora sem taxas mensais para quem mantém um saldo médio diário de US$ 2.000 ou mais, os membros do MileagePlus podem solicitar o cartão de débito com recompensas em UnitedDebitRewards.com.
A Southwest Airlines, impulsionada pela Galileo (a plataforma de tecnologia da SoFi), lançou o Rapid Rewards Debit Card
A Southwest Airlines, impulsionada pela Galileo (a plataforma de tecnologia da SoFi), lançou o Rapid Rewards Debit Card, permitindo que clientes que usam débito ganhem pontos em compras do dia a dia para trocar por voos.
