Could SoFi Be a Millionaire-Maker Stock?

Financial industry disrupter SoFi (NASDAQ: SOFI) has been a rare bright spot among the hundreds of companies that went public via reverse mergers with special purpose acquisition companies during the 2021 SPAC boom. Not only is the fintech a financially stable business and well on the way to profitability, but it has maintained terrific growth momentum, even during the 2022 economic slowdown and the 2023 banking headwinds.

Although its growth has been fantastic, there’s a solid argument to be made that SoFi is just getting started. Here’s a quick recap of SoFi’s recent numbers, where it stands relative to other banks, and why it could still have plenty of room to grow in the years to come.

Massive growth and improving profitability

SoFi’s growth trajectory has been stunning, and that’s especially true given that 2023 has featured a tough environment for smaller banks. When a few high-profile regional banks failed during the spring, many depositors started pulling money out of smaller institutions and putting it in big banks.

Yet during that period and the months that followed, SoFi did a great job of retaining its customers, in part by adding new features and products. For example, it set up a program with other banks that allowed it to offer its depositors up to $2 million in FDIC insurance, rather than the standard $250,000. Not only that, it continued to grow its customer base.

In fact, SoFi added about 1.3 million new members in the past two reported quarters alone, and its growth rate even accelerated in the third quarter. The Galileo fintech platform posted its largest quarterly member addition since early 2020. Plus, SoFi ended the third quarter with $15.7 billion in customer deposits — a figure made even more impressive by the fact that SoFi got its banking license in early 2022 and started from zero at that time.

Not only has its growth been impressive, but profitability is right around the corner. Management has said (and reiterated several times) that the…