3 Reasons to Buy SoFi Stock Like There's No Tomorrow
To call SoFi's (NASDAQ: SOFI) growth story an impressive one doesn't really do the company justice. Since going public in 2021, SoFi's membership based has increased from 3.4 million to more than 10 million, and it has evolved from a relatively small lender into a full-featured online bank. But even with the impressive growth, SoFi is still a relatively small financial institution. Just for context, SoFi has roughly 1% of the deposit base of Bank of America (NYSE: BAC).SoFi makes billions of dollars in personal loans with its own capital and has recently started to build out its loan platform business (LPB), which originates loans on behalf of third parties and also offers loan servicing on a third-party basis. This generates a stream of capital-light fee income for SoFi, without adding to its credit risk, and it is scaling at an impressive rate.In the fourth quarter, SoFi originated or referred $1.1 billion in third-party loan volume. The loan platform business produced $63.2 million in fee income from this and also produced $3.6 million in servicing fees. This is a significant portion of SoFi's revenue, and it could get significantly larger in the next few years. Continue reading
To call SoFi's (NASDAQ: SOFI) growth story an impressive one doesn't really do the company justice. Since going public in 2021, SoFi's membership based has increased from 3.4 million to more than 10 million, and it has evolved from a relatively small lender into a full-featured online bank. But even with the impressive growth, SoFi is still a relatively small financial institution. Just for context, SoFi has roughly 1% of the deposit base of Bank of America (NYSE: BAC).
SoFi makes billions of dollars in personal loans with its own capital and has recently started to build out its loan platform business (LPB), which originates loans on behalf of third parties and also offers loan servicing on a third-party basis. This generates a stream of capital-light fee income for SoFi, without adding to its credit risk, and it is scaling at an impressive rate.
In the fourth quarter, SoFi originated or referred $1.1 billion in third-party loan volume. The loan platform business produced $63.2 million in fee income from this and also produced $3.6 million in servicing fees. This is a significant portion of SoFi's revenue, and it could get significantly larger in the next few years.
