Strong Galileo Growth for SoFi Tech Platform Earnings in Q1
May 16, 2022
Galileo Financial Technologies earned record-high quarterly revenue during the first three months of 2022, driving 32 percent year-over-year growth for SoFi Technologies Inc.’s Technology Platform segment.
Galileo contributed the vast majority of the $60.8 million in total segment net revenue for Q1, SoFi announced in its quarterly earnings report, released on May 10, 2022, with the remainder coming from Technisys, the digital multi-product core banking platform SoFi acquired and added to the segment in March 2022. Total enabled client accounts for the Technology Platform segment also showed robust Q1 growth of 58 percent year-over-year, reaching 109.7 million in Q1 2022 from 69.6 million a year prior.
That increase was fueled both by the acquisition of 10 new clients–two of which operate in the B2B space–and user growth at existing clients, SoFi reported. “Already a market share leader among U.S. neobanks, Galileo continues to expand its client base to include B2B and enterprise clients, as adoption of modern, cloud-based, digital payments and banking has opened up new verticals, client types, use cases and opportunities,” said Anthony Noto, CEO of SoFi, during the company’s earnings call. ”The large installed customer bases of Galileo’s clients also provide unique growth opportunities for our existing capabilities, like instant provisioning, dynamic fraud engine, and two-day early paycheck, as well as financial and engagement products in our pipeline that can drive greater customer activity, like instant funding and direct deposit switching,” Noto added.
Looking ahead, SoFi plans to continue to invest heavily in the Technology Platform segment and leverage the combined capabilities of Galileo and Technisys to offer the only end-to-end vertically integrated banking technology stack that can support multiple products–including checking, savings, deposits, lending and credit cards–all surfaced through industry-leading APIs, for an audience including established banks, fintechs and non-financial brands looking to enter financial services. Along with providing vertical integration that enables faster innovation and growth, the addition of Technisys to SoFi’s Technology Platform segment also offers a complementary geographic footprint of Technisys clients in Latin America, adding to Galileo’s existing presence in Mexico and Colombia.
“Galileo and Technisys are already going to market together to offer new products and services to Galileo clients looking to expand their lineup,” said Noto. “Early reception among existing Galileo and Technisys clients in the U.S. and Latam has been very positive.”
See SoFi’s full first-quarter results for more information.
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