SoFi Technologies’ (NASDAQ: SOFI) primary segment in the past has been its lending division, but the company has been diversifying away from being primarily a lending institution. In 2019, lending made up 98% of SoFi’s total revenue. However, according to Visible Alpha consensus, this share is projected to drop to 51% in 2024. SoFi has expanded its services from student loans to also include personal lending, banking, and financial technology solutions.
The company’s expansion into banking has significantly boosted its financial services segment, making it SoFi’s fastest-growing division. In 2022, SoFi acquired Golden Pacific Bancorp, which provided it with a banking charter. This acquisition enabled SoFi to collect deposits, offering a funding base to hold more loans and benefit from higher interest rates. Another key growth area has been SoFi’s technology platform, which offers banking-as-a-service to fintechs and neobanks. In 2024, financial services are expected to make up 30% of SoFi’s total revenue, and the technology platform is estimated to account for the remaining 17%.
Visible Alpha consensus estimates suggest that SoFi Technologies will achieve robust growth of +16% year over year in 2024, with total revenue reaching $2.47 billion. This growth is expected to be primarily driven by a +71% surge in financial services revenue, which is projected to hit $748 million. The technology platform segment is forecasted to grow by +19%, reaching $418 million. Conversely, the lending segment is projected to decline by -8%, generating $1.3 billion in revenue.