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SoFi Technology Revisited: Still the Future of Fintech?

Today, SoFi Technology’s diverse suite of financial products is part of what makes it stand out.
SoFi Technology
Que Capital specializes in researching under-covered gems in technology, energy and commodities. We combine fundamental analysis with ESG factors in order to pick the best sustainable long-term investments.
Que Capital specializes in researching under-covered gems in technology, energy and commodities. We combine fundamental analysis with ESG factors in order to pick the best sustainable long-term investments.

By Que Capital Managing Editor Alessio D. Cirino

SoFi Technology SOFI is a pathbreaking fintech that enables  individuals to manage their finances, invest and obtain loans. Founded in 2011 by Mike Cagney, Dan Macklin, James Finnigan and Ian Brady, the company’s initial mission to disrupt borrowing (student loan refinancings, mortgages, personal loans) has since expanded to include investment accounts and insurance.

Today, SoFi Technology’s broad suite of financial products is part of what makes it stand out — along with its innovative technology and strong emphasis on customer-centricity. The company combines the convenience of a digital platform with personalized financial advice, enabling users to make informed decisions and achieve financial goals. Moreover, it has built a strong brand reputation, particularly among millennials and Gen Z, by offering competitive interest rates, low fees and a user-friendly interface.

The company went public through a SPAC merger with Social Capital Hedosophia Holdings Corp. V in June 2021, and since then its share price has fluctuated , mainly due to market volatility and broader industry dynamics. Currently, the stock trades in the $9-10 range, with an approximate 60% return in the last three months alone. In those months, the company benefited not just from the overall market runup but from developments in the area of student loan forgiveness developments.

SoFi investors can take comfort in the fintech segment’s overall strength. After a decade of massive growth — following by the rough road of 2021-22 — global fintech is projected to grow at a CAGR of 23.58% between 2022 and 2026. 

Even more comforting has been SoFi’s ability to capitalize — expanding its customer base, exploiting cross-sell opportunities, and launching new product lines. The company reported a 70% revenue CAGR between 2016 and 2021. Here are the company’s three primary strengths:

Differentiated Product Portfolio

SoFi offers a diverse range of financial products, including lending, investing, banking, insurance and financial education. This suite lets it  cater to various customer needs and cross-sell its products effectively.

Technology-driven Approach

The company’s data analytics in particular enable it to deliver seamless and personalized user experiences. Its user-friendly mobile app and online platform provide easy access to financial services, real-time insights and educational resources.

Member Benefits

Member benefits, such as career coaching, networking events, and educational resources, foster a sense of community and enhance customer loyalty. The company believes its holistic approach goes beyond traditional financial services, adding value to its members’ lives.

Of course, I couldn’t envision the extent to which AI would take off when I initially urged you to buy Nvidia.