1. Strong Growth Potential

SoFi has shown impressive user growth, with millions of new members joining its platform each year. Its expanding product ecosystem—including personal loans, student loan refinancing, credit cards, investing, and banking—encourages users to stay within its ecosystem, driving long-term revenue growth.

2. Bank Charter Advantage

In early 2022, SoFi received approval for a national bank charter. This allows the company to offer its own banking products, lowering funding costs and increasing profit margins. This gives SoFi a major competitive advantage over many other fintech companies.

3. Diversified Revenue Streams

Unlike traditional banks or single-product fintechs, SoFi earns income across lending, financial services, and its technology platform (Galileo). This diversified model helps stabilize revenue and provides multiple avenues for expansion.

4. Long-Term Tailwinds

Trends like the shift toward online banking, digital payments, and financial literacy are long-term tailwinds for SoFi. As younger generations increasingly prefer app-based financial services, SoFi is well-positioned to capture and retain this growing market.

5. Attractive Entry Point

With SOFI stock trading below its all-time highs, some investors view it as undervalued relative to its long-term potential. For those with a higher risk tolerance and a long-term horizon, the current price may offer an attractive entry point.