CEO of SoFi Anthony Noto CNBC said on Wednesday that the fintech investment platform has seen a large increase in the number of users this year, during a volatile period for the financial markets.
“We have seen the number of people using SoFi Invest double, the number of accounts opened since the start of the year,” said Noto on “Squawk Alley”.
Noto said the increase in use of SoFi Invest is indicative of a “two-city tale” during the coronavirus pandemic, which caused widespread economic damage in the United States in addition to its significant health record.
“There are people who absolutely need to fix their financial lives, and they have to borrow to do it,” said Noto. “There are people who need to build for the future, and they choose to invest during these difficult times now that they have more time to go home and be more thoughtful about investing.”
Young investors, in particular, felt an opportunity during the coronavirus market downturn, as a number of other online brokers say they have seen an increase in new accounts so far this year.
Noto, a former Twitter and National Football League executive, said 40% of transactions on SoFi Invest are via fractional shares.
Authorizing split share purchases is seen as a way to make investment more accessible, especially for young people. Companies such as Robinhood and Fidelity are also offering split trading, and Charles Schwab’s “Schwab Stock Slices” service will soon be launched.
SoFi, founded in 2011, focused early on refinancing Generation Y student loans, but has since expanded its financial products and now offers personal and mortgage loans. He launched SoFi Invest and SoFi Money, a cash management account, in 2019.
Last month, San Francisco-based SoFi agreed to buy payment software company Galileo for $ 1.2 billion.
More details were released on Samsung Money on Wednesday by SoFi, the company’s partnership with Samsung, which is expected to launch later this summer. It provides a cash management account with a Mastercard debit card and integrates with the existing Samsung Pay service.
“Our partnership with Samsung is truly an extension of our ability to reach people to help them achieve financial independence and spend their money well,” said Noto.