SoFi has benefited from high demand for student loans ahead of repayments that have been resumed this fall.

This American company announced the highest quarterly rate of loans in more than a year. The materials on the income of this firm for the period from July to September of this year report an increase in the number of new members of the corporate community. This figure currently stands at 717,000 people, which indicates a growth of 47% year-on-year.

The increase in the number of Galileo accounts in the third quarter was 10% compared to the same period last year. Currently, there are 137 million accounts on this platform.

Also, the materials on the company’s income for the third quarter contain information that the volume of student loans issued for the specified period amounted to $919.3 million. This figure is 101% higher than the result of a year ago. The volume of loans to individuals in the third quarter amounted to $3.9 billion. This indicator is 38% higher than the result recorded for the same period last year.

The company’s CEO Anthony Noto said during a conference call with analysts that the volume of financial services at the end of last quarter was 8.9 million. This indicator increased by 50% year-on-year. The volume of credit products of over 1.6 million increased by 24% compared to the result of a year ago.

Anthony Noto noted that the demand for student loans has increased slightly in anticipation of the resumption of payments on these loans. He noted that this dynamic was expected. Also, according to him, the mentioned indicator was the highest for the company since the first quarter of last year. He said that at the end of the third quarter, more than 65% of loans were financed by deposits. Anthony Noto said that $2.9 billion in new deposits between July and September helped finance loans totaling $5.2 billion.

The head of SoFi also said during the conference call that the quality of deposits remains high. According to him, 90% of deposits come from customers with direct deposits. Also, 98% of deposits are insured, which indicates not only their high quality but also their diversification.

Anthony Noto, during a telephone conversation, announced that significant growth in SoFi Money products was also recorded in the third quarter. The number of accounts amounted to 3.1 million, an increase of 53% year-on-year. The average score of FICO participants in the company’s direct deposit portfolio was 743. More than 50% of SoFi Money’s newly funded accounts open direct deposits by day 30.

Anthony Noto says that the ability to connect has become a factor of significant influence on the volume of expenses. The cost of quarterly debit transactions in the period from July to September reached a mark exceeding $1 billion. This indicator increased 3.2 times compared to the third quarter of last year.

SoFi’s results from July to September contributed to growth in new vertical segments, including B2B and traditional financial institutions, new products, and geographical regions. Anthony Noto said that the demand for the company’s offers from traditional financial sector organizations in the third quarter was the highest for the entire existence of the firm.

The company’s CFO, Chris Lapointe, said during a telephone conversation that the weighted average income of borrowers on student loans is $180,000 with a weighted average FICO of 781. According to him, the indicators of overdue balance sheet debt and write-offs are still below the levels that were recorded before the outbreak of the coronavirus pandemic.

The overall level of delinquency on personal loans for 90 days on the balance sheet in the third quarter is 0.48%. On an annualized basis, the write-off rate on personal loans was fixed at 3.44%. Chris Lapointe said the company still expects good performance compared to broader industry levels.

During a conversation with analysts, the firm’s management also stated that borrowers on federal student loans are refinancing. According to them, this behavior tactic is aimed at achieving the goal of saving costs compared to their current rates. Many borrowers intend to reduce their monthly payments, which, according to Anthony Noto, can become the basis for slow but steady growth.

As we have reported earlier, SoFi Debuts Student Loan Tool.