SoFi Technologies (SOFI 3.69%) has benefited from a favorable market environment. Since the start of 2023, the shares are up 60% (as of March 6), boosted by strong financial results.

Looking at the bigger picture, there is no shortage of reasons to appreciate this business. In fact, shareholders could be richly rewarded over the long term.

With that said, can this digital bank stock help you become a millionaire one day?

Disrupting a massive industry

As one of the world's oldest industries, coupled with its slow pace of innovation, the financial services arena has been among the ripest for disruption in the past decade. The popularity of smartphones and the internet only underscored the fact that there had to be a better way to serve customers.

This is exactly how SoFi ascended. The online-only financial institution doesn't rely on physical bank branches, instead operating a true digital business model that blends technology and banking. It's all about improving the user experience.

While the business started off offering only financing solutions for students to pay for their educations, SoFi has evolved into a full-fledged banking services provider. It also extends personal and home loans, as well as checking and savings accounts, credit cards, brokerage services, and insurance products.

It also helps that SoFi targets younger and higher-income consumers. As they age, their incomes rise, and their financial needs become more complex, giving SoFi an opportunity to cross-sell different products. And this can lead to switching costs, reducing the risk of customer defections and bolstering SoFi's economic moat.

Given these appealing attributes, it's not a surprise that growth has been the key story for this business. Revenue of $2.1 billion last year was up 35% year over year and up 275% versus three years before. SoFi now has 7.5 million customers, adding 585,000 in the fourth quarter.

Management is incredibly optimistic as we look toward the future. Executives said they expect revenue to rise at a compound annual rate of 20% to 25% between 2023 and 2026. These would be lower gains compared to the past, but that's still healthy expansion.

Key investment considerations

It's hard not to be enthusiastic about SoFi based on the details outlined above. However, investors can't ignore some important factors that will certainly have an impact on the potential for strong returns.

As of this writing, the stock trades at a forward price-to-earnings ratio of about 135. For a business that has focused intensely on investing in growth opportunities, mainly to acquire customers, it's not surprising that SoFI hasn't posted meaningful earnings.

But this changed for the better starting last quarter. The company reported net income of $48 million, a first since SoFi went public. The leadership team thinks that by 2026, earnings per share will total $0.63 at the midpoint of its estimates. Based on the current stock price, shares trade at 12 times that 2026 forecast. That looks like an very attractive valuation.

These goals aren't a sure thing, though. Despite its accomplishments thus far, SoFi still operates in a ridiculously competitive industry. Financial services are really just commoditized offerings at the end of the day. To maintain its growth and profit trajectory, SoFi will need to be on top of its game in the decade ahead.

Anyone hoping to become a millionaire from a single stock needs to have serious conviction in the business they are looking to buy. If you have this perspective when it comes to SoFi, you can increase your chances of hitting the seven-figure mark by boosting your initial investment size and extending your time horizon.

But regardless of whether SoFi helps to achieve this goal, the stock looks worthy of investment consideration today.