Magazine article American Banker

SoFi CEO's Strategy for Success: 'Make Every Transaction Faster'

Magazine article American Banker

SoFi CEO's Strategy for Success: 'Make Every Transaction Faster'

Article excerpt

Byline: Penny Crosman

SoFi's newly launched SoFi Money checking account is an effort to maintain a daily relationship with customers and enable them to use a mobile device for all their banking needs, CEO Anthony Noto said this week.

"The reason we call it SoFi Money is it's different from a bank account or a checking, savings or investment account -- we're allowing individuals to use their mobile phone to do everything they need to do," Noto said during CB Insights' Future of Fintech conference. "They can pay a friend, pay a bill, withdraw cash at an ATM, pay with a debit card, they can transfer money, they can wire money, they can set up instant bill pay, they can schedule bill pay, deposit a check from their phone. Ultimately we want to be a place that allows them to do all those different activities in a differentiated way."

The company is offering a 1% interest rate to customers who keep deposits with SoFi. It also intends to use customer data to help give them advice, he said.

The key differentiator SoFi Money will have from its many competitors, both incumbents and startups, is speed, Noto said.

"We think there's a lot of white space in making every transaction faster, every activity faster, using technology to do that," he said. "There's no reason it takes five or six days to approve a loan, it should take five or six seconds. There's no reason the funds aren't available for five or six days, it should take five seconds. There's no reason it takes us a month to do a securitization, it should take an instant. …

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