SoFi’s new chief executive officer Anthony Noto penned his first quarterly missive to shareholders highlighting the company’s mission and its company values but declining to address sexual harassment allegations against co-founder Mike Cagney, who was ousted as a result.
According to a report in CNBC, Noto used the letter, which was obtained by CNBC, to highlight key milestones like its Sofi at Work program, which hooks up with companies to help employees pay down their student loans and other debt, which has seen its funded loan volume increase by 118 percent from a year earlier. The program, Noto said, is used by more than 700 businesses. It was launched in September of 2016. Noto said it added 30 more partners in the first quarter alone.
SoFi is also gaining traction in wealth management, a market it entered last year, providing customers with access to low-cost exchange-traded funds. It has seen a 39 percent uptick in new accounts. Sofi Wealth, according to CNBC, has $43.5 million under management, which is tiny compared to the $10 billion under management that Wealthfront, the robo advisor, has. Noto said in the letter SoFi plans to expand its robo advisory services to offer individual stocks and other investment asset classes.
For the first quarter, SoFi had total loan originations of $3.6 billion, which marks a 27 percent increase from a year earlier. It added 59,000 new members and now has near to 500,000 customers, noted the report. As for the values of the company, Noto said SoFi has created a set of eleven of them — these include embracing diversity, taking care of other people and helping people grow. “We have changed the leadership team to set the example amongst their teams and to help us devise the programs and practices that will reinforce these values in our everyday life at the company,” Noto wrote in the shareholder letter, according to CNBC.
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