SoFi CEO on student loan pause, state of the consumer and A.I.'s impact on fintech

>>> SOFI COMING OFF THEIR BEST WEEK IN NEARLY TWO AND A HALF YEARS. WE'RE LIVE AT THE PIPER SANDLER GLOBAL EXCHANGE CONFERENCE FOR A LIVE INTERVIEW WITH SOPHIE CEO. >> THANKS FOR JOINING ME CONGRESS HAS ENDED THE STUDENT LOAN PAUSE STUDENTS HAVE TO START REPAYING LOANS. WHAT DOES THIS MEAN FOR YOU? >> FIRST OF ALL, IT WAS REALLY IMPORTANT THAT WE GAVE PEOPLE THE RELIEF OVER THE LAST THREE YEARS, NOT TO HAVE TO PAY FEDERAL STUDENT LOANS TO DEAL WITH COVID AND THE PANDEMIC. THAT'S BEEN OVER FOR ABOUT A YEAR WE THANK THE REPRESENTATIVES IN WASHINGTON FOR MAKING THAT BIPARTISAN DECISION. NOW CONSUMERS SHOULD LOOK TO REFINANCE. WE CAN HELP THEM OUT IF THEY HAVE INTEREST RATES IN THE HIGH 6s OR 7%, WE HELP THEM OUT. AS AN EXAMPLE, IF SOMEONE HAS $70,000 OF STUDENT LOANS AND THEY HAVE A TEN-YEAR TERM ON A 6% RATE THEIR MONTHLY PAYMENT IS ABOUT $775 THEY HAVEN'T BEEN PAYING THAT FOR THE LAST THREE YEARS IT'S GOING TO BE A BURDEN FOR THEM LIKELY IN THIS ENVIRONMENT. IF THEY WANT TO EXTEND TO 20 YEARS, THEY CAN LOWER THAT PAYMENT AT 6% TO $500 A MONTH. 20 YEARS IS A LOT MORE THAN 10 YEARS, BUT THEY CAN HAVE THAT FLEXIBILITY. THEY CAN REFINANCE AT LOWER RATES. THEY CAN SAVE BY SPREADING OUT OVER THE TERM. WE THINK PEOPLE WILL DO BOTH >> YOU WERE FOUNDED YEARS AGO FOR MORE AFFORDABLE OPTIONS FOR STUDENT LOAN PAYMENTS. YOU'VE EXPANDED. YOU'RE IN PERSONAL LOANS, HOME LOANS. WHAT'S THE STATE OF THE CONSUMER RIGHT NOW? YOU HAVE A VIEW INTO A LOT OF LOAN BUSINESSES. WHAT IS THE CONSUMER DOING >> WE'RE IN THE LOANS THAT YOU MENTIONED, PLUS CHECKING, SAVINGS ACCOUNTS WE WE'RE A BANK WE HAVE INSURANCE AND CREDIT CARD IN THE MOST RECENT QUARTER, WE DREW 43% YEAR OVER YEAR. THERE'S A LOT OF DEMAND FOR OUR PRODUCTS WE'RE CONTINUING TO SEE STRONG D DEPOSIT GROWTH WE'RE CONTINUING TO SEE MEMBERS SPEND AT A HIGH RATE. >> YOU'RE NOT SEEING AN INCREASE IN LOAN LOSSES >> WE'RE BELOW THE LEVELS FROM 2019 OUR CONSUMER IS MORE OF A HIGH-END CONSUMER, $100,000 OF HOUSEHOLD INCOME AND CREDIT SCORES ABOVE 680 >> YOU MENTIONED YOU COULD SAVE MONEY TO REFINANCE THEIR LOANS, PARTICULARLY STUDENT LOANS RATES MIGHT BE COMING DOWN WHAT DOES THAT MEAN? HOW IS THAT GOING TO HELP YOU AND CONSUMERS? >> FOR CONSUMERS LOOKING TO BUY HOMES, AS RATES COME DOWN, THEY'LL BE ABLE TO DO THAT FOR THOSE WHO HAVE STUDENT LOANS THEY CAN REFINANCE AS MANY TIMES AS THEY WANT WITHOUT PENALTY AND COST THERE'S NO CLOSING COSTS THEY CAN REFINANCE NOW AND SPREAD THE PAYMENT OUT, BUT THEY CAN REFINANCE WHEN RATES GO LOWER AS THEY'RE ANTICIPATED TO DO IN 2024 AND 2025. THE OTHER THING THAT'S IMPORTANT TO KNOW, AS RATES GO LOWER, THERE WILL BE LESS TO MAKE IN CHECKING AND SAVINGS ACCOUNTS, BUT WE'LL BE ABLE TO PROVIDE AN ATTRACTIVE RATE. >> SCOTT HAS A QUESTION. SCOTT? >> ANTHONY, I JUST HAD A CONVERSATION ABOUT WHERE WE ARE WITH ALL THIS AI MANIA AND THE HYPE AROUND IT AND THE HOPE THAT'S SENT A LOT OF STOCKS HIGHER I'M GOING TO SEND YOU BACK TO YOUR YOUNGER DAYS, TO 1999 YOU'RE THE INTERNET ANALYST AT GOLDMAN SACHS. YOU HAD A FRONT ROW SEAT WITH HOW THAT STARTED AND ENDED DO YOU VIEW ANY SIMILARITY FROM BACK THEN? I WOULD LOVE IT THROUGH THE PRISM OF YOUR EYES. >> THERE'S DEFINITELY A LOT OF HYPE AROUND AI COMPANIES ARE CHANGING THEIR NAMES TO AI AND COMPANIES CHANGING THEIR URL ADDRESSES CONSUMERS NEED TO WATCH OUT FOR THAT AND PROTECT THEMSELVES. THE QUESTION THEY SHOULD ASK A CEO OR MANAGEMENT TEAM IS HOW MUCH REVENUE DO YOU THINK YOU'LL GENERATE FROM AI WHAT'S THE SPECIFIC AMOUNT OF COSTS YOU'LL GENERATE FROM AI? GET TO TANGIBLE RESULTS THAT WILL IMPACT THE PERFORMANCE OF THAT COMPANY FROM A CONSUMER PERSPECTIVE THEY'LL BENEFIT A TREMENDOUS AMOUNT THE QUESTION REMAINS WILL THAT TRANSLATE INTO BETTER REVENUE OR PROFITS. FOR SOFI WE USE IT IN OUR CHATBOT TO BETTER ANSWER CONSUMER QUESTIONS WHICH RESULTS IN FASTER RESOLUTION TIMES, LOWER CONTACTS PER

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Id: 11GR5hqJBVc

Length: 5min 23sec (323 seconds)

Published: Wed Jun 07 2023