$SoFi Technologies Inc.(SOFI)$
What I think people are missing with $SOFI, is that its banking business is based upon velocity of money.
When we drop cash into our accounts and SoFi has to start paying us 4.6%, they must get it moving immediately.
They have done so recently heavily via personal loan growth.
They’re approaching their minimum required capital ratios and this has people concerned about growth stopping when they hit the minimum if they can’t sell more personal loans.
But in my view, this cash on the books is a liability to SoFi bank. They need to get it out asap or it generates losses.. why wouldn’t you get to your minimum capital ratios as soon as possible and then find the equilibrium?
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