Still, now after seeing the difference between how a digital company and a traditional bank approached the same loan program, according to Noto, the markets gave the big banks a clear directive to rethink their technology stacks and change the way they operate. Many of their older competitors first approached digital banking as a trend, then dipped their toes in the water, and quickly backed out (remember Finn by Chase?). On the Future of Banks and Banking: While SoFi has evolved into a massive company, based on Noto’s comments, it’s clear the company hasn’t lost its startup mindset and operates as such.

Noto says it’s a live case study in the importance of digital distribution, the digital-first systems and of digital lenders, and the simple fact that digital lending is what they do… notice a trend? Whether it was prioritizing customers with existing debt to sure up their books or not being prepared to review the mass-volume of loan applications digitally, those same critics will say companies like SoFi, Kabbage, BlueVine, and other online lenders came to the rescue. Without taking a side, several critics have said the big banks failed when it came to PPP loans. On the Pandemic and PPP Loans: If COVID-19 has shown us anything, it’s the value of digital infrastructure. Sofi believes in reality, what’s best for shareholders is what’s best for stakeholders and instead focuses on a Return on Relationship. At the root of this mission is the significant difference in strategy Incumbent banks focus on a Return on Equity and make significant business decisions on what’s best for shareholders. The company’s mission or “number one goal” is to help its members get their money right. But over the last 20 years, as banks changed, the focus on relationships has changed with them. The idea is to offer customers simple products like a savings account, then be there as their financial needs become more complex and then provide mortgages or investments. On Business Strategy: Banks have always been built on a simple premise: relationships. He told this story through the lens of recent events like the pandemic and PPP loans and why he believes the future of banking will be defined by business strategy, not just technology. CEO Anthony Noto spoke at Lendit 2020 on why the company continues to be a standout and a go-to choice for the next generation.ĭuring a discussion titled “Where is Fintech Going and How SoFi Will Be Central to its Future” Noto delved into the company’s success and why he believes it’s poised to at the tip of the innovation speer as the future of banking becomes a reality. What began as a small fintech startup aimed at helping American students tackle their student loans has grown into a massive financial institution with its name on a Football Stadium.

Sofi ceo anthony noto