Zhitong Finance learned that SoFi Technologies (SOFI.US) CEO Anthony Noto expects the Federal Reserve to cut interest rates by 75 basis points in 2024. He said this move would benefit his company's loan needs and free up investment cash for other companies. Noto said on Monday that policymakers should immediately begin cutting interest rates, drastically cutting interest rates by 50 basis points.

He said, “Cutting interest rates by 50 basis points now is much better because next year will stimulate more economic activity, because companies are now making decisions for next year. If they know that the cost of debt on their huge balance sheet can be reduced by 50 basis points, they can increase recruitment, increase investment, or even just get a signal to cut interest rates.”

Noto said SoFi is facing the prospect of operating under a “stable” economy and lower interest rates, which give the company “more freedom” on its balance sheet. He said, “We will be underwriting as much of the home loan business as possible because the nature of the business is light capital. In terms of student loans, we will also be very active in lowering interest rates to provide people with good savings.”

Noto said overall loan demand “has increased significantly over the past 18 months.” He added, “Cutting interest rates by another 100 basis points will only make these loans more attractive to buyers. In addition, we have other projects.”

Noto said that lower borrowing costs for businesses will allow them to spend less on debt and spend more money on technology and recruitment, which will help SoFi's technology platform business.

Noto said the “least valued” aspect of the SoFi business is creating “a product above the product.” Among potential products, the company is internally testing a product called “Cash Coach” (Cash Coach), which looks at all the cash held by SoFi and other online venues and suggests to users how to better optimize money.

Sofi shares closed up 1.2% on Monday. The stock is down about 28% this year so far, while the S&P 500 index is up about 15% over the same period.