Firstly, lets dig into the rate cut. I just want to start off by saying this to be expected. We now have confirmation that the FED will be looking to start the cut cycle imminently and we should see many other companies start to roll back their money market rate. We can look at the chart below and see we have started to roll down from the high.
SOFI does appear to be getting in early on dropping rates, which isn’t ideal given some of the bull arguments are for being able to offer a higher rate for longer. However, if we look a little deeper into this and check out what their ”peers” are doing, we can see that SOFI is still on the higher end of the offerings. In the grand scheme of things -0.1% is marginal but it’s important to note these offerings will continue to fall throughout the coming year and we must always keep an eye on where they rank amongst their competition, just to give us perspective. Otherwise a sneaky bear might convince us that there is blood in the water… when the reality is the opposite.
So should this be a concern? Personally, I don’t think so.
The second bit of SOFI news we have is SOFI’s Galileo is the first issuer-processor to offer Mastercard Smart Data, allowing businesses better insight into their employees business spend. SOFI , is now offering its fintech clients, with fintech Rho as the first to launch, the ability to connect their business customers to Mastercard Smart Data, a market-leading expense reporting and analytics suite. By integrating detailed transactional data directly from Mastercard, businesses can significantly reduce the time and complexity of managing corporate expenses.
Not the sexiest product but it’s another string in the bow. Their Tech stack has been a little lagging and it’s one of the areas the bears love to bring up so anything to provide some lift there is a positive. We don’t know if this will be part of a bundle package or anything yet though.
Source: Click here
