The saga of Upstart Holdings (UPST 2.76%) continues to play out against the backdrop of high interest rates and investor enthusiasm. It has been a highly volatile stock, with fans excited about its long-term opportunities and detractors still waiting for signs that Upstart has a viable business model.

In the past year or so, Upstart has reported sharp revenue declines and net losses. While it tries to get itself back together and wait for interest rates cuts, you might want to consider other financial sector stocks that are demonstrating growth and resilience despite the economic climate. Ally Financial (ALLY 0.41%) and SoFi Technologies (SOFI 3.69%) are both also feeling the macroeconomic headwinds, but they're moving on clear growth paths. Plus, they both have incredible long-term prospects.

Ally: High value and a great dividend

Ally is a medium-sized bank that gained higher recognition when Berkshire Hathaway took a position in it in 2022. It was originally the finance arm of General Motors, and it was only spun off as its own company in 2010, with an initial public offering in 2014. Auto loans remain a robust segment of its business, and Doug Timmerman, president of dealer financial services, is taking over as chief executive officer at the end of this month.

Upstart touts its auto financing segment, but Ally is the company to beat in this industry. It's the top U.S. prime auto lender and has the top spot in dealer satisfaction, according to J.D. Power. Ally partners with Upstart competitor Pagaya to identify would-be borrowers' credit risk accurately and maximize its auto lending business. It had 13.8 million auto loan applications in 2023's fourth quarter with a 30% approval rate and $9.6 billion in loan originations.

But Ally has expanded its offerings to include the full range of retail banking services, and has become the largest all-digital bank in the U.S. It's capturing market share with its easy-to-use banking interface and high interest rates. In the fourth quarter, retail deposits increased by $2.4 billion year over year to $154.7 billion, and it ended 2023 with 3 million customers, a 13% increase. The number of its customers using multiple products continued to grow, reaching 299,000 at the end of the year.

Ally stock has soared since the Federal Reserve said that it may start cutting benchmark interest rates in 2024, and the shares are up about 60% in the past three months. It pays a dividend that yields 3.3% at the current share price, and it's a no-brainer value stock to add to a diversified portfolio.

SoFi: More than student loans

SoFi is similar to Ally in that it too, is an all-digital banking and financial services provider. However, its focus has been on financial technology, and it only got a banking charter in 2022.

It started out making student loans, but as it has expanded to offer a large suite of services, it has escaped what could have been a destructive impact from the student loan repayment pause during the pandemic. It's also in high-growth mode, adding millions of new customers annually -- primarily in younger demographics. It added a record 717,000 new accounts in 2023's third quarter -- a 47% increase year over year -- and record new product adds of more than 1 million.

The lending segment has been strong despite higher interest rates. Student loan originations are surging again, more than doubling from last year. Home loans in Q3 rose 64%, and personal loans increased 38% to a record $3.9 billion.

But SoFi's move into other financial services is what's driving growth. In the third quarter, 67% of its adjusted net revenue growth came from its non-lending segment. Total adjusted revenue increased 27%, and that led to soaring profit based on one key metric. SoFi reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $98 million -- a record, and a 121% increase over last year. And management projected a net profit in the fourth quarter.

SoFi stock gained 116% in 2023, but it's been falling in the new year. Investors got spooked by an analyst downgrade in early January, and on top of that, they may be preparing for sobering news in SoFi's fourth-quarter report, which is expected on Jan. 29. If it delivers a net profit, and if management continues to demonstrate an aptitude for playing its cards right in the high-interest-rate environment, expect the stock to jump. Long term, SoFi is resonating with a younger consumer cohort, like Ally, and it has a long growth runway.