SoFi Technologies Inc

In the table below, we present the total products metric related to our Financial Services segment:

Total products in our Financial Services segment is a subset of our total products metric. See“Key Business Metrics” for a further discussion of this measure as it relates to our Financial Services segment.

Financial Services Segment Results of Operations

The following table presents the measure of contribution profit (loss) for the Financial Services segment:

Net interest income in our Financial Services segment increased by $61.7 million, or 106%, for the three months ended March 31, 2024 compared to the same period in 2023, which was primarily attributable to net interest income earned on our deposits, which includes interest income based on our FTP framework (which eliminates in consolidation) and interest expense to members. This net increase corresponds with the growth of deposits at SoFi Bank, as well as the impact of higher interest rates offered to members.

Noninterest income in our Financial Services segment increased by $7.8 million, or 34%, for the three months ended March 31, 2024 compared to the same period in 2023, primarily due to an increase in interchange fees, which coincided with increased credit card and debit card transactions, as well as growth in referral fulfillment activity, as we continue to drive volume to our partners.

The directly attributable expenses allocated to the Financial Services segment that were used in the determination of the segment's contribution profit (loss) were as follows:

(1)Other expenses primarily include operational product losses, third-party fraud expense, network servicing fees, travel and occupancy-related costs, tools and subscriptions, and marketing expenses.

Financial Services directly attributable expenses increased by $8.0 million, or 8%, for the three months ended March 31, 2024 compared to the same period in 2023, primarily due to: (i) an increase in direct member incentives utilized to drive adoption and usage of our Financial Services products, the most significant of which was our SoFi Money product, (ii) an increase in product fulfillment costs, which included debit card fulfillment services, primarily related to our SoFi Money product, (iii) an increase in intercompany expenses attributable to increased usage of technology platform services during the 2024 period, (iv) an increase in compensation and benefits expense, which reflected growth in the Financial Services segment that required additional staffing. This increase was partially offset by: (i) a decrease in lead generation expense, primarily related to our SoFi Money and credit card products, and (ii) a decrease in direct advertising costs primarily driven by a decrease in online and digital advertising largely related to our SoFi Money product.