Galileo Financial Technologies surpassed the 150 million-end-user milestone during the first quarter of this year, Galileo parent company SoFi Technologies announced in its most recent earnings report, released on April 29, 2024.
SoFi’s Technology Platform segment–which is composed of Galileo and the Technisys cloud-based core banking services platform–tallied 151.0 million total enabled accounts at the end of Q1, up from 145.4 million accounts the previous quarter and a 20 percent year-over-year increase.
Meanwhile, first quarter segment net revenue jumped by 21 percent year-over-year, to $94.4 million, a continued acceleration from the 13 percent and 6 percent year-over-year segment net revenue growth recorded in the final two quarters of 2023, respectively.
SoFi CEO Anthony Noto attributed the Technology Platform growth to strong performances from new clients added over the past three quarters, including deals with major financial institutions in Latin America and robust takeup of new products launched by existing clients on the Galileo and Technisys platforms.
“Demand from traditional financial institutions and clients in non-financial categories remains strong,” Noto said during SoFi’s earnings call. “We’re seeing the transition to modern processing and modern cores playing out as envisioned.”
During the call, Noto highlighted several “key strides in product development” for the Technology Platform in Q1, including an expanded partnership with The Bancorp Bank to offer Real Time Payments for B2C and B2B clients, the launch of post-purchase Buy Now, Pay Later for banks and fintechs and Galileo and SoFi Bank teaming up to launch a small business financing card program with Rapid Finance.
“The demand and interest in… using our technology platform, our modern Gen-3 core, as well as our API-based payment platform is as high as it's ever been,” Noto said.
The SoFi CEO added that that demand has come from a range of client types, including “partners that haven’t historically used an issuing platform or processing platform like Galileo,” as well as the major bank segment, which has shown “really robust demand” for the modern banking core and processing capabilities offered by SoFi’s Technology Platform segment.
Banks Are Asking the Wrong Questions About Core Modernization
In the early 2000s, Netflix offered Blockbuster an opportunity to integrate its online DVD rental model for $50 million. Blockbuster, bullish on its retail dominance, dismissed the offer, scoffing at the idea that digital and mail-based rentals could compete with its physical footprint. Blockbuster became a relic, while Netflix grew into a $433 billion global company.
Galileo Brings Co-Brand Debit Rewards to Hospitality Sector
Galileo is bringing its debit card rewards programme - which allows brands to offer debit users access to rewards normally reserved for credit card customers - to the US hospitality sector.
Choosing the Best Banking Option Isn’t Always Easy
Choosing the right banking option can be complex, with consumers weighing features like fees, accessibility and digital tools across traditional banks, credit unions, online banks and fintech firms.
Relationship Fragmentation is Killing Loyalty: How Should Banks Respond?
Banks have long believed that delivering core banking services inevitably leads to ownership of their customers' full financial needs. That's becoming a dangerous myth, according to a new report on emerging consumer behaviors across multiple generations.
Galileo Rolls Out Wire Transfer API for Fintechs
Galileo Financial Technologies, a leading financial technology company owned by SoFi Technologies, Inc. (NASDAQ: SOFI), today announced it is arming fintechs with wire transfer capabilities, enabling them to better serve consumers and businesses by offering another option for fast, secure money movement.
