Three Strong Motivations to Acquire SoFi Shares without Considering the Future
SoFi's growth story is nothing short of remarkable since its IPO in 2021. Boasting a membership of over 10 million, the company has dramatically transformed from a modest lender to a full-fledged online banking powerhouse. Despite its rapid expansion, SoFi remains a relatively minor fish in the banking pond, with just 1% of Bank of America's deposit base.
1. A Cash Cow on the Horizon
SoFi's personal loan business generated billions, all funded with its own capital, and the company is venturing further into the loan platform business (LPB). LPB originates loans for third parties and provides servicing on a contractual basis. This diversified revenue stream is capital-light, meaning it requires little upfront investment, and delivers a continuous fee income without adding to SoFi's credit risk.
In the fourth quarter, SoFi originated or referred $1.1 billion in third-party loan volume, generating $63.2 million in fee income and $3.6 million in servicing fees. This component of SoFi's revenue has the potential to grow exponentially in the coming years.
2. Technological Wizardry
SoFi's Galileo technology platform offers innovative financial solutions for enterprise clients, aiming to become the "Amazon Web Services" of fintech. It's an ambitious goal, but SoFi is making steady progress. In 2024, the number of accounts powered by Galileo surged by 15%, and the platform's contribution profit grew by an impressive 34% year-over-year.
Galileo's recent triumphs include being chosen to process federal benefits prepaid debit cards for 3.4 million Americans, signing a partnership with a major U.S. financial services company, and powering a co-branded debit card program with a popular hotel rewards program.
3. Efficiency Unlocked
SoFi's banking services have seen rapid growth, particularly in SoFi Money account holders, which increased by 51% in 2024. While this might seem counterintuitive, it actually creates a more efficient business structure. With financial services products acting as a marketing funnel, SoFi can tap into its growing customer base and offer its loan products to a wider audience without incurring additional acquisition costs.
A Fresh Perspective
To truly appreciate SoFi's growth potential, it's essential to focus on three key factors: a capital-light, fee-generating loan platform, the innovative Galileo technology platform that's tapping into the fintech opportunity, and an efficient business structure that optimizes customer acquisition. Delving deeper into these aspects unveils the underlying growth catalysts that could propel SoFi's expansion in the coming years.
4. Forging Ahead in Finance
SoFi's strategy in the finance sector extends beyond lending and technology, as its recent entry into the world of investing demonstrates. In 2025, SoFi Invest, a digital investing platform, saw a stunning 60% increase in user accounts. This surge in investor engagement aligns with the company's mission to unify money management, banking, and investing under one umbrella.
This expansion into investing provides an additional avenue for SoFi to maximize its customer base. By offering a diverse array of financial services, SoFi can establish itself as a one-stop-shop for its members, further solidifying its position in the competitive banking landscape.
