Financial services are one of the world's largest industries, worth trillions of dollars. Financial technology companies like SoFi Technologies (NASDAQ: SOFI) are trying to do things differently and, as a result, are nipping at the heels of traditional banks. Here is why SoFi's stock could shine like a diamond in 2023.
Financial services company and digital bank SoFi Technologies (NASDAQ: SOFI) went public in June 2021 with lots of support and plenty of hype. At this point, SoFi finds itself in a bit of a regulatory headache.
Shares of SoFi Technologies (NASDAQ: SOFI) were pulling back this week after the fintech that offers everything from banking services to student and auto loans got two pieces of bad news. First, the Biden administration said it was again extending the pause on student loan payments until next June, limiting a key revenue source for SoFi because it makes money on student loan processing fees. Second, a Senate banking committee posted an opening letter asking to review SoFi's crypto products.