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This Fintech Company Continues To Grow at a Respectable Clip

By Danny Vena and Jason Hall - Jun 23, 2022 at 2:45PM

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Product offerings are on the rise.

Some may think that SoFi's (SOFI 5.68%) financial health is poor, but is that true? In this clip from "The Future of Fintech" on Motley Fool Live, recorded on June 9, Fool.com contributors Danny Vena and Jason Hall take a look at some metrics that show the fintech company is not in trouble but growing steadily.

Danny Vena: I want to bring up SoFi's investor presentation with its summary results from the first quarter. Because I think I want to do this to dispel the notion that the financial health of the company is in bad shape because I don't believe that to be the case. If you look at let's see here, I'm going to get a couple of slides here.

Right now, the number of members joining SoFi was up 70% year over year in the first quarter, that's pretty respectable. The number of new products added to their portfolio up 84% year over year. Now, that's down from the triple-digit growth over the past few quarters but necessarily not surprising. Galileo, which is their deposit account that I think they acquired this company not terribly long ago.

Jason Hall: Yes it's a platform. It's something that it provides services for other fintechs too. It's a really, really, really great business.

Vena: Again, on a sequential basis, that's down a little bit, but still 58% growth is respectable. Look at the number of lending products and financial products. Lending products up about 20%, financial products up a 111%, so still triple-digit growth there.

I wanted to bring that up because if you look at these charts, these are not the charts of a company that is in trouble growth-wise. The company is still growing at a respectable clip, maybe down a little bit from the across-the-board triple-digit growth that we saw over the course of the past year or so.

Danny Vena has positions in SoFi Technologies, Inc. Jason Hall has positions in SoFi Technologies, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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