Begin? I think it's beginning. All right, great. For our next panel, we're joined by SoFi CEO, Anthony Noto. Anthony has served as CEO of SoFi since 2018, steering the company through its transformation into a full-service digital bank. Today he announced the launch of the crypto- trading platform as well. His career spans leadership roles at Twitter, the NFL, Goldman Sachs. He is also a graduate of West Point. As today is Veterans Day, thank you for your service. I was actually at West Point last week for the Army game. It was really good. It's beautiful there.
Great time of year.
Yeah. Thanks for joining us. Maybe, Anthony, you could start with running down where we are with SoFi as a story, the key initiatives ahead that are going to drive growth from an already impressive starting point today.
Sure. It's hard to talk about where we are without starting with where we've come from. I joined in approximately January of 2018. We set out on a mission that's still our mission today and a strategy that's still our strategy today. Our goal was to essentially help overachievers, people that have done well academically, done well professionally, help them get to the point that they could live their ambitions. Their ambitions could be what size family they wanted to have, what size home, career they wanted to have, retire when they wanted to have, live where they wanted to live. It was our view that this cohort of overachievers had been largely left behind by banks because it was hard to make money on them.
Increasingly, banks had scaled to the point where they're exiting businesses based on what their ROE was as opposed to what the member or person actually needed. That was my pitch to the board in December of 2017. We have sort of executed on this one-stop- shop approach because there is no way to help people get to where they want to be financially if you do not help them spend less than they make and invest the rest. Savings is not going to get you there. Investing is critical. If you do not spend less than you make, you cannot invest. A relatively simple formula.
It requires us to do everything we possibly can with them, be there for all the major decisions they're making in their lives, paying for college, buying a house, getting married, having children, but also all the days in between so we have more information to help them when they make those big decisions. In 2018, we generated about $250 million in revenue, and we had about 650,000 members. We were about to launch SoFi Money, SoFi Invest, and a couple of other products and services. Today, we're on track to do over $3.5 billion in revenue. We just reported results and had over 12 million members and expect to continue to add to that quite significantly. It grew about 35%. We're over 18 million products, growing 36%.
We've been profitable, I think, for eight quarters in a row and are driving really good margins both at EBITDA and net income margin and growing book value quite meaningfully. In terms of where we go from here, we think we can sustain significant levels of growth just focusing on what we're already doing and helping to drive continued brand awareness, driving continued trust, continuing to iterate on the products, making them faster, providing better selection, better features, better functionality, making the entire app more useful and more integrated, in addition to providing great content and convenience and making the products all work better together. We think just that alone, we can grow pretty meaningfully from here. If you look at our last 16 quarters, we've exceeded the rule of 40, which is revenue growth plus EBITDA margin.
We have done that 16 quarters in a row with an average of 58%, which is quite remarkable for a financial services company. The business, when I joined, had two products. They were both lending products. They were basically 100% revenue in lending. Now we are down to about 45% of revenue in lending. Lending is a great product, but it is also capital- intensive. It can in some ways gate your growth. Our growth is really un-gated now given the scale we have in the rest of our products and services. We truly can offer products across borrowing, saving, spending, investing, and protecting. The new initiatives beyond what I already talked about is we mentioned crypto this morning. This is step one of a long roadmap of products that we will continue to bring to market.
I believe blockchain and digital assets are a technology super-cycle similar to AI that will impact every element of the financial services world globally and actually have a bigger impact in Third World countries and economies that have not benefited from banking and capital availability over time. We'll launch a SoFi USD stablecoin, both a payment stablecoin and a deposit stablecoin. The payment stablecoin we hope to introduce in January, if not sooner. It will be part of SoFi Pay, which we just launched a couple of weeks ago, which is the ability to send payments from the United States across the Lightning Network to, in this case, Mexico into local fiat. We'll launch Europe and Brazil before the end of the year. SoFi stablecoin will be part of that transmission payment process.
Our crypto business that we announced this morning, the payments that flow between us and other third parties will all be done with SoFi USD. SoFi USD will also be used at point of sale. SoFi USD will also be a currency in a tokenization of loans that will also be offered to all of our partners that generate 8 billion transactions, debit or ACH transactions through the Galileo platform per year. We will market SoFi USD to every large bank, every regional bank, every consumer company that accepts digital assets, and everyone in between. We have significant aspirations there. We have secured lending aspirations tied to digital assets and many other investment opportunities. Beyond that, within Invest, we have made a really, really big push to increase awareness for our Invest product. We will continue to do that. We're actually rolling out crypto in Hong Kong in addition to the United States.
Can you maybe expound on SoFi Pay a little bit more? Who will you be competing against? What are you trying to achieve versus sort of what you have right now? You hit on it a little bit, but maybe you can dig deeper a little bit.
Yeah. I've waited a long time to be able to say the word SoFi Pay. We purposely do not talk about our products externally or internally based on traditional industry nomenclature. I hate the word SoFi Checking, SoFi Save. I'm like, no, it's a money account. We put money in an account, and you should be able to do whatever you want with the money in that account. It's a money account. That's why it's called SoFi Money. The reality is, when you're regulated as we are as a national bank, which I'm very proud of, there actually is nomenclature that you have to use. Checking account, that's actually what it's called. A savings account, it's what it's called. The functionality that we provide for that account is really put money in that account. You earn interest, 3.8% APY.
You earn reward points for money in that account. You can send money via instant self-serve wires, which I would encourage you to try. It's amazing. I have children. They need to send wires for different things. Without me teaching them one thing about ABA accounts or routing numbers or SWIFT numbers, they could send a wire in five minutes. It verifies your identity in real time every time. We can do international remittance now. We can do ACH. We can do debit. We're adding FedNow. We do Zelle uniquely. We do person-to-person payments either via email or phone number. We do Bill Pay. We do physical checks. We have all, obviously, bank transfers. We have all these ways to pay.
SoFi Pay is really a way to bring that set of products and services to the masses around the world as a way to spend globally. The first version of it is this international remittance. You'll see it evolve over time to be the place you put money when you want to pay. It can draw from any account, fund from any account, could fund from a SoFi checking account, fund from a SoFi savings account, fund from a SoFi brokerage account, fund from an ex-bank account. We want to help people move money as fast as they would like to move it so they can get on with what they want to achieve at the lowest cost and the safest.
I guess there's all these digital wallets out there today. Wouldn't this be competing with them?
100%. It's going to compete with every way you move money. The reason why we call it SoFi Pay is you pick where you want the money to come from. You pick the way you want it to travel or where you want it to go. We'll pick the lowest cost way, fastest way, and safest way to get there.
Got it.
It'll be fully integrated in our app. It's not meant to be a stand-alone app. It's meant to be that SoFi Money is the tip of a sword for acquisition for us. SoFi Relay is the tip of the sword. SoFi Plus is, and this will be another way for us to create these unique needs, meet these unique needs, and then bring that person into the fold of SoFi.
I assume the primary customer acquisition channel will be people that are using your products today. And then after that, do you roll out a broader marketing strategy? How do you go about getting customers?
Yeah, I think this product will actually appeal equally to non-SoFi members as SoFi members. When I say tip of the sword, this will be a primary SoFi-first product for a lot of people that maybe didn't understand what SoFi does. Or even though we spend nearly $1 billion in marketing, our unaided brand awareness is roughly 10%. That means when you ask 100 people, when you need a financial services product, name three companies, you don't give them any names, 10 out of 100 people would mention SoFi. That means 90 out of 100 people wouldn't put us in their top three or even know to put us in our top three. We have a huge opportunity to grow that unaided brand awareness. We think it needs to get to 30% for us to achieve super- scale and be on our way to a trillion-dollar company. We have to do much more than that, obviously. This is a product that will help introduce people to the product that are in that 90.
How do you educate the customers on your products?
Yeah. SoFi Pay is a real easy telegraphic thing to communicate as opposed to SoFi Money, which may not be that obvious, or SoFi Invest may not be that obvious. There are a lot of different ways to market the product. Our goal is to have it available through partners as a way to pay in that moment and to use it to switch the way they pay and give them economic incentives, both the merchant and the consumer, to do that. We will also market it from an acquisition vehicle in other ways. Sign up for SoFi Pay and get X reward points or sign up for SoFi Pay and get X back when you pay. Referrals is another example.
Got it. So you rolled out crypto trading capabilities today with SoFi Crypto. What will differentiate your product and what kind of expectations do you have for it?
Yeah, sometimes it's better to be lucky than good. I never imagined a day that the OCC would say that a national bank, and there's different types of charters. We have the best charter in my mind. We're not a trust bank, but we're the first national bank that is offering crypto trading in the United States. I think we'll be the only one for a short period of time, but we'll continue to differentiate. When we launched SoFi Invest back in 2019, we launched with cryptocurrency, the ability to invest in it. In 2023, we were forced to close it down because it was deemed as not permissible by the Fed in a bank holding company. March 7th of this year, the OCC came out with an interpretive letter that said crypto trading or investing, not in those exact words, was permissible by banks.
We ran as fast as we could to reintroduce the product. It is way better than it was before. Here is why. We have to invest a significant amount of money in the infrastructure, in the processes, in the people, in the technology to ensure that we safeguard people's money. We have a huge responsibility for safety and soundness. It is governed by the OCC. It is governed by the Fed in the bank holding company. People want to know that what they do is safe. They want to know they can trust their partner with. Having a national bank license telegraphs significantly the amount of safeguards that are in place for people with cryptocurrency. We know there is a growing interest in cryptocurrency or digital assets. What people are worried about is, are they going to get hurt by a company going out of business?
Are they going to get scammed? Having that seal of approval as a bank is super helpful. All the things that we do to build the rest of our businesses have gone into SoFi Crypto. One additional benefit compared to others that we'll compete with is you do not have to put your money in one of these wallets that you do not know where it sits. You do not know if it is insured. You do not know if you are being hacked. It actually is going to sit in your SoFi Money account. If you want to buy Bitcoin, you transfer money into a SoFi Money account, which is checking and savings. You can earn interest with that money sitting there. You could pay any way you want. You do not have to use it on crypto.
The second you put in an order for Bitcoin and it executes, we withdraw the money from that account. We put it into the marketplace to third parties, and we execute it for you. You do not have to fund the crypto account. All you are really doing is signing up for the ability to buy, sell, or hold crypto. You are getting the benefits of this great checking and savings account that gives you 3.8% interest, allows you to pay any way you want, not keep your money locked up. One of the challenges with crypto accounts and wallets is that your money is kind of siloed. You have to remember, oh, shoot, I have $5,000 there that I have not invested yet. I want to move it someplace right now. It is not so easy. If it's sitting in SoFi Money, you can send it all the ways I just mentioned instantly.
Got it. So it sounds like you have big ambitions about building this platform and ecosystem, and you want to offer a lot of different products. How quickly do you think you can get there?
I mean, it's not, I mean, we built this SoFi Crypto buy-sell-and-hold technology. We were able to buy some technology that was in a company that had gone out of business that was proven and scalable. We have gotten there pretty quickly from March. We're going to do institutional buy-sell-and-hold as well. That's around the corner. I mentioned SoFi USD by January, hopefully sooner. Our team's listening and knows that I'm telling everyone hopefully sooner. I think it will be a very short walk to the rest of the products. We can move very fast. We have a great engineering product and design team. We have a great business unit leader for our crypto ambitions. We believe first to market matters a lot. It's not the only factor, but getting there first and building trust before someone screws it up is pretty critical.
Do you feel like you might be behind some of the non-bank competitors given that's a regulated entity?
I mean, what I'd say is they're already doing billions and billions of dollars of trading. It would be misleading if I didn't say we're behind. We just started trading today for the first time in two years. They have more volume than us. They have more customers than us. They have more years of experience than us. We'll absolutely kick their butts because we are a national bank. We'll provide a level of safety and soundness that they'll only desire to do, and they'll never get there without the investment. They won't make the investment unless they have to do it from a regulatory standpoint. I don't think they have the intestinal fortitude to climb the mountain that we've climbed and now on the other side of to get that bank license.
It is not just about technology and KYC and AML and BSA and all these other buzzwords. It is about liquidity. It is about quality of assets. It is about the management team, quality of earnings, and vibrancy in tough times. Having survived the fallout of First Republic, Silicon Valley Bank, Signature Bank, as a technology financial services company that is in those similar markets is a true testament to how battle-tested our technology is, our processes, and our safeguards. I think it is a huge advantage. It allows us to differentiate in the marketplace. Because we have done that investment, I think we can move faster and safer.
You described crypto as a super cycle. AI is obviously another one. How are you incorporating AI into your processes at SoFi?
We have over 40 proof- of- concepts going on at the company currently. If you'd asked me that question in September of 2024, I don't think I could have really made an argument for more than a handful of proof- of- concepts. Here are the different ways we're using it. We're using it to remediate account takeovers faster. We automated that process now. We're using AI to basically remediate account takeovers faster. We're now implementing that into restrictions, account restrictions. We're actually doing the same thing with disputes and resolving disputes faster and quicker. It not only makes a great member experience or improved member experience, it lowers cost, provides better accuracy. I call that defensive. There is one thing that we talk about internally that's not that broadly talked about in the investment community, which is second-order effects.
If you launch a product that's the best of checking and savings in one, like SoFi Money, first-order effects is you grow that to 6-7 million members, $32 billion of deposits, X billion dollars of transactions. What you also grow on a second-order basis is disputes, account takeovers, fraud, all those different issues. Up until 2024, no company in the sort of ecosystem of Silicon Valley and technology investment was focused on solving second-order effects. There are now companies that exist just to solve account takeovers, just to resolve disputes, just to provide protections on transactions and authorizations. That is super exciting. It will make the experience better. It will move more transactions digitally from physical. The second area is offensive. In our app right now, you can click on Cash Coach.
Cash Coach will look at the cash you have in all of your accounts. You have to connect those accounts to us, or if you have them all with SoFi. It'll look at cash in all your accounts. It'll look at all your spending. It'll try to predict how much excess cash you'll have and how to optimize its location. You may have a credit card balance that's only $1,000, but you're paying 25% interest on it. Pay down your credit card and basically pay yourself 25% interest by paying it down. You may have $10,000 sitting in a checking account bearing no interest, and you can simply move it to SoFi Money and get 3.8%. You may have a credit card that's maxed out and it's paying 25% interest, and we can refinance you at 12% through an unsecured personal loan.
Cash Coach is giving you options to optimize your cash. There is something that we have not launched that we are working on right now called Coach overall. We make fun of these things internally. I see T-shirts with my face on it and hats. They make me smile. Hopefully, they make other people smile when Coach helps you get your money right. Coach is really meant to be like the equivalent of a ChatGPT for you at SoFi. For example, my credit card was run up to $6,000. I had just paid it off about eight days ago. I am like, I did not spend $6,000 on anything. I went in and clicked on Coach. I said, please give me a list of every transaction that has happened on my SoFi Credit Card since I paid the bill off X days ago. Ten seconds, it has every transaction.
Please aggregate them by merchant. All of a sudden, I'm like, holy cow, my family's spending a lot of money at DoorDash and on Uber and a lot of money on Apple. We have four Netflix accounts. We're the only family in the country that's actually paying for multiple Netflix accounts. You can ask it other things. How do I improve my credit score? How do I lower my cost of debt? Can I refinance my mortgage? Am I diversified enough? How may I change my risk profile? That is something that will come out later. It will be something that's unique to SoFi because we have all this data on you, but we also have all this data on other people. We can train models based on that data.
Being a one-stop shop all of a sudden becomes a differentiator on usable data to help you get your money right. In the end, we want that product to proactively answer for you the three questions every day. What must you do in your financial life that day to get your money right? What should you do and what could you do?
So it sounds like you're using AI for better engagement, for cross-selling other products. Is there a cost savings component?
There's definitely a cost savings on dispute resolution, account takeovers, fraud restrictions. There's also a cost savings in my mind by personalizing experiences to help people get to the point they need something quicker and faster. That's going to help on customer acquisition cost. We are using it for marketing and making our ads have higher click-through rates, better conversion. That drives customer acquisition cost down as well. It's really proliferating the entire company in every area. Forty proofs- of- concepts are not, it's not easy to do. There's that much opportunity. We can do these things on small individual tasks or big offensive opportunities.
Perfect. Maybe you could switch gears and just talk about the health of the consumer because there's just a lot of different data points we're getting around that. It sounds like they're mixed. I'm just curious sort of what you're seeing inside your portfolio. There's a lot of chatter about student debt and students. Maybe just filter through all of the different demographics as well.
Sure. First, the level set. We go after a higher-than-mainstream customer. So $100,000 income or higher. Our average FICO scores for our personal loans and student loans are in the 750 range. So higher income, higher credit. That does not mean we do not have a lot of people below that in check and savings account or invest. We do. Generally, that is the target audience that we go after from a credit standpoint. We have seen really strong performance of credit. We announced our quarter, I think, 12 days ago. It has only been 12 days. We have not seen a change in credit, you can imagine. It has performed really well. It has improved meaningfully over the last two years. A lot of that is because we are doing a good job underwriting. We are seeing credit performance improve while significantly increasing our originations.
Last quarter, we were up to about $9 billion in total originations, $7 billion in unsecured personal loans. We used to do like $3 billion or $4 billion. When you grow that type of amount of originations, you could potentially see some decay in credit performance. We haven't. We haven't changed our credit box. Within the credit box, even at higher volume, we've seen consistent performance. The other two things we look at are spending on a point- of- sale standpoint, which is very strong. Of course, investing. We're seeing really strong engagement on the investment side. We're not really seeing any deterioration in the consumer at all. The things I always focus on beyond our own data is what's going on with employment.
I've said before, until unemployment gets above 5%, I'd even say slightly higher than that, 5.25%, I don't worry about the economy. The things I do worry about that are not related to the consumer because we haven't seen that deterioration is what's going on with liquidity, what's going on with credit more broadly. When I hear things about credit deteriorating in other places, I pay attention. We try to follow a number of leading indicators. It's not like we're oblivious to it. We're just not seeing it translate to us, nor the upstream effects of whoever's having challenges with credit. Similarly, we're looking at credit card spend. It's obviously great to have partnerships with Visa and MasterCard. They provide a lot of healthy information that we look at.
The thing in the past that I think has caught people by surprise in environments like we're in is liquidity issues. Rates are going down. Quantitative tightening is ending. Liquidity really shouldn't be an issue, although you got to look for those canaries in the coal mine. We haven't heard or seen anything like that yet.
Are student loans that?
Student loans have done our SoFi. For those that do not know, we do two types of student loans. One is someone has an existing federal student loan, and it is at a certain rate. Their credit score is meaningfully better than the average credit score that determines that rate when they graduated, and we help refinance them at a lower rate because their credit is better than what the rate is. They may have a 7% rate. We can refinance them at 5%, sort of like a mortgage when mortgage rates go down. That product has slowly been getting back to a normalized level. I think last quarter we did just under $1 billion, and it is doing fine. We are not seeing any meaningful change in that business. The other business that we do in student loans is actually in-school loans that we have slowly been building over the last eight years.
One win behind the back of that business is the government's decision, and I don't think it's finalized, to stop funding graduate school loans or Grad Plus loans, so medical school, law school, business school. That will have to come from the private sector. We're happy to provide that financing for people that are qualified. It's actually an even more attractive loan than our student loan refinancing. Rates are meaningfully higher, almost 30%-40% higher. Credit performance is actually as good as the student loan refinancing. It's almost 30% higher interest charged without a higher loss rate. The funding costs are very similar. That would be a very nice business to add to SoFi. I'll give you a fun fact that we mentioned on our earnings call.
We expect in the fourth quarter to generate more revenue in our home loans business than revenue we generate in our student loan refinancing business, which is a remarkable stat when you think about it, that we did not have a home loans business in 2019. We closed it down. And student loan refinancing was the first business the company was founded on. Many people think that is the only product we still have. It is nothing negative about student loan refinancing. It just shows you how far we have diversified the business away from capital intensity and a loan book that is unsecured.
For that Grad Plus opportunity, when and if it arises, how do you intend to go after it?
We have a sales team that's been calling on universities for the last, I think, six years. It's led by a great General Manager. They're out selling to those universities to get qualified to be a lender for the graduate students.
Got it. So you guys feel like you're in a good position there too?
I think we're in a great position. The best position to be is when the largest companies in your industry don't even offer the product. It is very reliable that banks don't offer a lot of the products that people need.
Maybe you could just talk a little bit while we're on the topic, student loan refi and the current addressable market for that and how it fits into the broader SoFi picture.
Yeah, I don't want to downplay it. It's an awesome product. The members that we have at SoFi, that's their first product or a good product or great members. They do many other products for us. It's just not going to scale the way the rest of the business is scaling. Home loans is going to be a much, much bigger business. I mean, it already is. The rates are still relatively high. Personal loans, I think, can continue to grow meaningfully. We're attacking the credit card industry. Basically, you don't realize this till you get into the nitty-gritty of it. Here's the deep, dark secret about credit cards. It's ruining the financial fabric of our country. It's ruining the financial fabric of our country. I wish we could do more to educate Americans that these large banks are offering these premium credit cards with huge rewards.
In fact, last night on my TV in my hotel room, it said, "Sign up for X card, 125,000 bonus points." Someone is going to get addicted to those bonus points. They're going to start spending, not thinking about whether they can make the full payment at the end of the month to get to more reward points to get a free airline ticket. The fact that they're actually paying 25% interest on that $1,000 balance that they're not worried about paying off is offsetting any savings they have on the reward points. It's almost like a dichotomy in that banks are supposed to help you. They're giving you these reward points as a drug that you keep chasing, not realizing you're building this balance that you're not going to pay off. Maybe it's first $500 that you don't pay off. Then it's $1,000.
It's $2,000. You're getting charged 20%-25% interest. Who realizes they're paying that amount of interest? If you go back and look, I'm pretty confident there are people in this room that have not paid off their entire balance every month in their lives. We're going after that audience and refinancing them from 25% down to 12%. The great thing about that personal loan that refinances them off of that 25% is there's no prepayment penalties. You could pay it just as much as you used to pay and pay it off twice as fast. You could actually refinance it if rates go down again without a prepayment penalty, without any additional fees. It's a great product. Home loans and personal loans are going to be meaningfully greater than student loan refinancing. It's a good acquisition to find great customers.
Great. Let's shift gears. LPB has been a great driver of fee revenue. It's provided diversification to your revenue base. What do you see as the long-term opportunity for that business?
I think it's pretty significant. There are two elements to this. One is, what's the volume of loans that we can generate through our marketing engine, through our underwriting engine, our credit engine, and service? What's the volume of loans we want to put on our balance sheet? The answer to that question is that the amount we can generate is meaningfully greater than what we actually want to underwrite and keep on our balance sheet or even want to sell. We can help be an origination engine for all these dollars out there that have to buy assets at insurance companies and asset managers, et cetera. I think it will continue to be a pretty big opportunity. The area that's new and different that we have less experience in is we turned down 70% of the applicants for unsecured personal loans at SoFi, 70%.
We believe that the cohort of near prime applicants that we do not approve will be equally attractive. We have to build some history on that credit performance. We think it will be equally as attractive. I think Chris has said it on the call. There is $100 billion of declined loans on our platform. We do not think all $100 billion are loans that people would want. There is probably 25% of it that near- prime lenders would love to have. We are just not in that business. That would be an additional driver of the Loan Platform Business.
Are your LPB partners still active? And are you speaking with new potential partners?
Both. We have a bunch of repeat customers that have made annual commitments. They've renewed those annual commitments. They've upped the amount they're doing. We do have people that do an annual commitment, and then intra quarter, they come in and ask for more. We're in dozens of conversations with new partners. We are hiring. If you go on our website and look at capital markets, we're hiring a lot of capital markets people. The capital markets people call on the asset managers and help get those deals done. We have more inbound interest than we have what we call in capital markets, but essentially salespeople. We are hiring quite meaningfully to help meet the demand of what's coming in.
This is a question I have just like, where is all this growth coming from? Is it coming from people refinancing their credit card loans, as you sort of described? Or do you think it's people levering up more than they did before? How would you?
It's people refinancing their credit cards. We ask the question. We're very cognizant that someone may refinance their credit card debt down and then run their credit card bill back up. One way to eliminate credit issues is identifying that. Loan stacking is another thing that we have to identify. By the way, AI does—we don't use AI to predict cash flow because it's a knowable thing. If you want money from us, give us the things that tell us what your cash flow is. If you don't want money from us, don't answer the questions. We shouldn't use AI to predict cash flow. It's a knowable thing. We should underwrite to knowable things. We can use AI as a way to detect first-party fraud, people loan stacking, and other behaviors that increase the credit risk of that person post us refinancing them. The real adjustable market is the credit card trillion- dollar- plus market.
Got it. Maybe we could shift gears and talk about home lending. You've kind of touched on it a little bit. Maybe you talk about the opportunity.
I just think it's the most important economic and emotional decision people make in their lives when they buy a home. We need to be there. It's a hard business to make money on. We're finally at that point that we're making money on it. It's growing very nicely. When rates come down, I think we're in a great position to refinance our members' mortgages. For our members that have mortgages, only 2% of them have it through SoFi. There's a huge opportunity for our existing members in refinancing their home loans as rates come down. Purchase will be a big opportunity as well. We're prepared for that.
Is the origination channel direct?
Just everything else we do. We do direct mail, digital performance marketing, television, pretty much all the channels you'd imagine, radio, et cetera.
Got it. Can we talk about rate cuts and how it impacts NII for you guys?
Rate increases, rate cuts. We're able to make adjustments in what we're doing to maintain net interest income and net interest margin. We're managing to returns. We have pretty good data and analytics and testing capabilities to maintain the right types of spreads relative to the risks that we're taking. Declining rate environment is a hell of a lot better than a rising rate environment. I'd be super excited to see rates come down another 100. I think another 100 basis points would be gangbusters for student loan refinancing, for personal loans. I also think the home loan business would benefit meaningfully. 200 basis points would be really significant. Our investments will also benefit as rates come down because people will make less on savings.
Cool. Could we talk about the tech platform business? When will we see the benefit from new contracts coming online?
Yeah. We provided a perspective on the Tech Platform Business that our transition strategically to large banks and to installed bases. Two things happened. One, large consumer businesses that have installed bases that want to be in financial services, that has done incredibly well. We've signed United and launched that. T-Mobile shift their portfolio over to us. We announced Southwest Airlines and Wyndham. Those are all launched. We're making really good traction there. Large financial institutions have been slower to make decisions. Quite frankly, with the change in administration, I think all the demand from large financial institutions to upgrade their technology is gone because they're not getting the pressure to do it. There's a lot of other products and services that we can offer those two channels.
We said we'd give an outlook for 2026 once we get there to kind of bring it all together because there's just a lot in flux. The biggest benefit of our Technology Platform Business does not show up in the P&L. That is the ability to build infrastructure technology for SoFi. The innovation that you see in our app and on our website and driving this growth, it's a direct result of owning that technology platform, not to mention it's just a very good business in terms of the revenue it has and the marginal profitability it has. Everything we want to do in crypto, we want our Technology Platform Team to build for us and to build for other people. That technology is not something that's replacing stuff at banks. If you look at regional banks or large banks, they do not have crypto- trading technology.
They don't have secure lending capabilities. They don't have stablecoins. As we build all these technologies for SoFi in digital assets and in blockchain, we are going to provide those services to others. That will be a much bigger opportunity than, say, converting a big financial institution's core because they're not replacing something. It's additive, which is a much easier decision for them.
Got it. We have a couple of minutes left. I figured if there are any questions from the audience, I will take them if anyone has any. Otherwise, I got one or two more questions. Just questions.
Regional banks and other banks, they don't have an infrastructure today. What do you think is needed for them to receive, say, for example, stable?
Yeah. This is a commercial to all of them and to all of you that are investors to tell them. We want them to use SoFi USD. And here's why they should use SoFi USD versus any other stablecoin. We are a national chartered bank. We are a bank holding company. We have access to the Fed window, Fed bank accounts. When someone gives you a dollar for a stablecoin, that dollar is supposed to be put into reserves. We are going to put that dollar at our Fed bank account. What does that mean? Others will put it in T-bills or Treasury bonds, et cetera. They all have duration risk. They all have liquidity risk. Even though we do not like to admit it, they also have credit risk.
When you put the dollar into the Fed bank account, it has zero credit risk. It has zero liquidity risk. It will be bankruptcy remote. It does not have duration risk. My pitch to everyone is, we're going to build the technology in our Tech Platform Business. You could wrap our SoFi USD coin with your own name. We'll do all the minting, all the burning. We'll do all the treasury work. We'll give you Fed funds, which we get by putting in the Fed funds without the credit risk, without the duration risk, and without the liquidity risk. We think that's a product that every regional bank, every large G-SIB should use. They should not start other companies that then have to apply for a license and then have to prove they can do this. We're a bank. We're already in third-party technology services.
We're going to ensure that it has phenomenal distribution because we're going to give it to our consumers. We're going to give it to the people that do the 8 billion transactions through our technology platform via ACH and debit. It will have a lot of distribution through those different points, which is critical for a stablecoin. We'll do it in all the necessary currencies outside the U.S.
There's one right over there. Do you have to convert it to fiat to do that?
We will have to provide stablecoins in non-US dollars. It will just be a different smart contract and a different treasury method.
Got it.
Yeah. You launched crypto trading this morning. You're charging a 100 basis point flat fee buy and sell, if I'm correct, I think, what it says. Right now, across the spectrum, we're seeing the cost ranges from 5 basis points to 4%. First off, do you think being at 100 basis points, is it a relative advantage? Or do you think that's less of a factor of drawing interactions versus, say, a Coinbase that's charging 200 basis points?
No. I mean, we want to make it cheaper, faster, and safer for people to do anything with us. We will be competitive on price. That is an initial point of view. We will see how things go. If we can lower it, we will lower it. We like to say that there are only a few competitive advantages in life. Amazon and Walmart's competitive advantage, they are low-cost operators. They provide the best prices, best selection, best service. I believe we have the best unit economics, best lifetime value. We can provide the best prices, the best services, and the best selection. We will compete our butts off to get that to be very competitive.
Turn the volume up a little bit.
Just long term, where do you think that is going? Is it going to follow the same range as equities?
It's really hard for me to predict where it's going. I know this will be incredibly competitive and have the economics to be more competitive than other people to have a competitive advantage on price.
We are out of time. Thank you so much, Anthony.
Appreciate it.