Last Updated: February 16, 2022
SoFi, an American online financial service company, experienced a record jump in shares after Betsy Graseck, an analyst from the investment banking company Morgan Stanley, set a price target of $25, whilst saying that SoFi has the “fastest growth story in consumer finance”, MarketWatch reports.
Social Finance Inc., commonly known as SoFi, started with an initial goal of refinancing student loans at a lower interest rate. Founded a decade ago, the online finance company now offers a suite of financial loans besides student loans, such as mortgages, personal loans, and the opening of IRA accounts. If you plan on investing a given portion of your money, SoFi’s smart technology and robo advisors can help you decide where to invest your money. Also, SoFi is one of the many companies offering credit loans to people with bad credit histories.
What Lies Behind SoFi’s Success Story?
SoFi’s ease of use and its accessibility via both mobile and desktop devices make the company a hit among the younger population, especially millennials and Gen Z. That’s not everything that makes SoFi stand out from the competition. This company offers an all-in-one app and a website that guides its customers in everything from investing to lending. In a few words – SoFi does it all.
Student lending has been SoFi’s go-to move and the “largest revenue driver”, Graseck explains. However, she believes that such loans will decrease in the future. Another thing that Graseck sees as a promising sign is that the company plans on acquiring a small community bank. “This alone could boost total revenues by ~10% in its first full year given benefits to [net interest margin,” Graseck says, which could be an additional factor for the boost in share value.