Financial technology (fintech) is growing in popularity year by year as consumers seek convenient and easy ways to manage their finances. Whether it’s a loan or an investment, we want it close at hand at all times, and SoFi Technologies (NASDAQ:SOFI) is here to make it possible. The movements of the company in the industry make SOFI stock a valuable fintech game.

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Many consumers are no longer willing to visit the physical branch of a bank or investment firm. They are looking for the comfort and convenience of having everything on their smartphone.

This is where SoFi comes in. The company has already revolutionized traditional banking and is constantly growing its user base. It expands the range to make it a complete one stop shop for all your banking needs.

SOFI stock has gone from $ 22 to $ 15 in one month and it may continue to show volatility in the short term. However, there are several catalysts that make the title a solid game for the long haul. Let’s take a look at these factors.

SoFi has stellar finances

Investors are generally concerned with the fundamentals of a business, and SoFi is sure to impress here. It is growing at a rapid pace, and the growth of its members is proof of that. The company has seen an increase in membership for eight consecutive quarters in August, which is nothing short of impressive.

SoFi is growing and growing rapidly. During the last quarter, the number of its members increased by 96% to reach 2.9 million. This means that the company’s products are hugely successful, which leads to an increase in the user base.

Each new member using the product generates more income. It also saw its number of technology platform accounts increase by 80% to 89 million. The company’s revenue, users and products are growing rapidly.

What works for SoFi are its unique products and services. It has simplified banking operations for users and makes them accessible through a single platform for all. The company invests aggressively in its products and constantly develops its offer. Whether it’s a brokerage account, a student loan or a home loan, everything is accessible from a single platform.

SoFi may not have to incur huge expenses to grow in the years to come, and this is when revenues will exceed operating expenses. This will have a big impact on the bottom line and will contribute well to the financial performance of the company.

SOFI stock is down, but as long as the company is generating strong revenue and growing its user base, it’s a buy.

SoFi could be a big bank one day

I have written about this in the past and will continue to do so here. SoFi applied to become a banking holding company in March 2021 and announced its intention to acquire Golden Pacific Bank. If all goes according to plan, SoFi will have a national banking charter and that could be huge.

The company will try to make the most of this opportunity and use it to transform the business. It will no longer need to rely on banking partners for money management solutions, and it will also be able to provide deposit accounts to its members.

Once the banking charter has been granted, SoFi will no longer look back. This will push the SOFI share to a new high, marking a turning point in the company. I believe this is reason enough to bet on the stock at this time. The company has significant growth potential and big plans to transform the industry.

The result on SOFI Stock

Given the growth of its members and its solid fundamentals, it seems that SOFI stock is undervalued. This is a great opportunity to add it to your portfolio and make the most of the downturn. It will not trade for long at this level.

SoFi is already attracting new users quarter after quarter, and its fundamentals are impressive. Once the company receives the bank charter, the sky is the limit for SOFI’s stock.

At the date of publication, Vandita Jadeja had (directly or indirectly) no position on the titles mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

Vandita Jadeja is a CPA and freelance financial writer who enjoys reading and writing about stocks. She believes in buying and holding for long term gains. His knowledge of words and numbers helps him write a clear stock market analysis.