Gate open to net income: the earnings stream completes the loop
SoFi deposit flywheel: members, deposits, net interest margin, and the credit gate A funding loop where member growth feeds a low-cost deposit reservoir, deposits displace warehouse debt, the loan book turns margin into net interest income, and a credit-quality valve decides whether the earnings stream completes to net income or is partly absorbed by losses. Member base drives deposits & fees Deposit base low-cost funding tank Warehouse debt higher-cost · replaced Loan book held on balance sheet Credit gate quality valve Net income earnings stream Losses sink charge-offs · marks Fixed costs spread by scale 1 2 7 4 6 3 · net interest margin flywheel · members feed the next round 5 · fee income · capital-light EBITDA margin holds 5 gains flow through gains absorbed