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.
The financial super app SoFi Technologies (NASDAQ: SOFI) and the Brazilian digital bank Nu Holdings (NYSE: NU) have been two of the most highly anticipated and most-watched fintech companies to hit the public markets in recent years. Both initially saw fast growth in their respective markets. After going public through a special purpose acquisition company (SPAC) in 2021, SoFi rose to a huge valuation like many tech stocks before falling more than 70% this year amid high inflation and rising interest rates.