SoFi (NASDAQ:SOFI) provides student loans, personal loans and mortgages. It is headquartered in San Francisco and has offices across the globe. During the last three months, SOFI stock has been down more than 45%, putting it in a precarious position among growth stocks.
It is important to be aware of the risks of investing in stocks, but it is also important to be mindful of the potential rewards. Aggressive investors are running for cover, as the market is off to a rough start this year. Many experts attribute this to rising interest rates and fear that the Federal Reserve will raise rates faster than previously expected.
SoFi is a digital financial services company that offers a wide range of financial services through a single mobile app. The company was founded in 2011 by a group of Stanford graduates and has since grown to be one of the country’s largest private student loan providers. SoFi also offers personal loans, mortgages and wealth management services.
The company has been successful because it provides an easy way for people to access credit. It understands that many people cannot get approved for loans from traditional banks, so it offers an alternative with better rates and more flexible terms.
SoFi’s Asset-Light, Streamlined Approach
Financial services is one of the most important industries globally. It’s also one of the most competitive. There are many banks and lenders to choose from, and it can be hard to find one that suits your needs best.
The use of multiple banks is becoming more and more common. This means there is a greater need for people to compare different banks and lenders before deciding which one to use.
Financial service is a broad category. It includes everything from retirement, savings and insurance to investments, credit cards and loans.
This is why it’s so difficult for big banks to innovate. They offer such a wide range of products that they can’t focus on any area. Instead, they have to rely on the same old tactics of cross-selling — pushing customers to purchase other products in addition to what they came in for.
That’s why many large banks are turning their attention away from retail banking and instead focusing on online banking. It’s much easier to personalize an online experience than a brick-and-mortar one.
What sets SoFi apart is its deep understanding of its customers’ needs and desires. The company offers a wide range of products tailored to clients’ needs and lifestyles. This gives it an edge over other companies that only offer more traditional financial products like loans and checking accounts.
Members can use the app for many different tasks. You can borrow money to spend later and earn interest on the money you’re saving. And if you’re always on the go, you can access your account from any device. Thanks to its easy-to-use platform, its usage has grown exponentially. Therefore, investors cannot afford to ignore SOFI stock.
SoFi’s Growing Business Model
SoFi has been doing well in the competitive financial sector with a growing base of customers and institutions who love it. That’s because it offers excellent rates for loans and mortgages, as well as an investment platform for stocks and bonds.
The company recently announced it has received a bank charter. It has successfully expanded its services, creating a wide range of lending and banking products that benefit from a diverse customer base. That’s important because SoFi Money currently uses third-party banks for cash management.
If the company became a bank, it would offer more products and services, which would make it more efficient. It will lower costs for SoFi’s lending process. For example, it could fund loans with its deposit accounts.
SoFi provides lower interest rates for borrowers while increasing the interest rate for account holders. Coupled with its SoFi Money offerings, it becomes an even more compelling value proposition for many customers. The company’s strong outlook will likely result in long-term earnings growth and make it a great investment.
SoFi Stock Will Rise
SoFi offers more than just traditional banking services. It’s a one-stop shop for all of your financial needs, offering more than half a dozen unique financial platforms. This helps it compete with neobanks and digital challenger banks.
When a company has an increased brand presence, it can drive new member growth and ensure a smooth experience. SoFi’s Galileo platform allows for a seamless exchange of products between customers and provides no confusion around the payment process. It also offers a range of packages to suit your needs with no additional price difference.
The company’s recently-sanctioned charter should speed up earnings and growth. Plus, bond rates are so low right now that SoFi may be able to attract more customers with its high-yield checking and savings plans. In summary, SOFI stock has all the potential to become a winner this year.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.