The last few years in the stock market have been a wild time, driven by the pandemic, supply chain issues, inflationary pressures, and higher interest rates.

From 2021, investors might remember so-called meme stocks. These are companies that quickly gain popularity on social media among retail investors but whose underlying businesses aren't always sound.

But despite the dubious quality of most of these companies, there is one meme stock that has legitimate long-term upside. Here's why SoFi Technologies (SOFI 3.69%) should be on your investing radar.

Finding success in a crowded industry

The banking industry is ridiculously competitive, but investors looking to allocate capital to the sector might want to ignore this reality.

Think about it from the customer's perspective. When looking for where to open a checking or savings account, sign up for a credit card, or take out a mortgage, the options are essentially unlimited. There are local credit unions and banks, massive multinational financial institutions, and digital-only providers, the latter category being the one SoFi belongs in. This makes it that much more difficult to stand out.

Moreover, the fact that the banking industry has been around just about forever means that it has long been ripe for disruption. And this is where SoFi absolutely shines.

By being an online-only platform with no branches, and by targeting a younger and more affluent consumer, SoFi has found tremendous success. Growth has been a key part of the story since the company's founding more than a decade ago. And even amid macro headwinds, the gains are still notable.

In the most recent quarter (the third quarter of 2023, ended Sept. 30), SoFi's revenue increased by 27% year over year. And for the full year, management raised its guidance for adjusted revenue by $51 million at the midpoint.

The membership base also keeps rising, and it is now at just under 7 million. This is a huge benefit for SoFi because members can sign up for multiple products that the business offers, thus driving stickiness and loyalty for many years to come.

There's reason to be extremely optimistic about its prospects. The company's deposit base of $15.7 billion is tiny in the grand scheme of things. For comparison's sake, JPMorgan Chase has $2.4 trillion of deposits. SoFi probably won't get this large, but it shows you the sizable runway.

To its credit, the company has seen that deposit figure increase dramatically in the last nine months. This is especially encouraging after the regional banking crisis that hurt the public's trust in banks.

It's nearing a major financial milestone

SoFi shares performed well in 2023, ending the year up 116%. This gain handily crushed the Nasdaq Composite Index's return. However, the bank stock remains 63% off its peak price, which was set in February of 2021.

I think this stems from investors placing more of an emphasis on businesses that are profitable, particularly amid higher interest rates. SoFi has long been focused fully on growth at the expense of positive net income.

The good news, though, is that there could be a major financial milestone on the horizon. CEO Anthony Noto said that in the fourth quarter of 2023, he expects SoFi to post its first-ever profit under generally accepted accounting principles (GAAP). This would certainly give investors the confidence they need that the business is on a more sustainable path.

Of course, reporting a single quarter of positive net income isn't enough. Investors will want to see this happen consistently. But it is encouraging that SoFi is able to do this during an otherwise difficult operating environment for banks.

As we look toward the long term, if SoFi can keep growing revenue and members at a solid clip, while also expanding the bottom line, the stock price has some serious upside.