SoFi: Why a Bank Charter = Rocket Fuel

The first time we ever wrote up Sofi we said we loved two things about their business model. It was:

1. A focus on credit

2. A focus on getting a bank charter approved

Sofi to date has been able to deliver strong on #1 even if the face of serious headwinds via the student loan moratorium.

And on #2, Sofi just got approved for a bank charter today! This has massive implications for their business going forward.

Let's discuss it below 👇 

Sofi Bank Charter:

As we discussed the first time we wrote up Sofi, getting a bank charter approved would be a major step in a differentiated business model versus their peers.

And after years of trying to get one, Sofi just announced that they were approved for a bank charter.

We can't overemphasize how historic this is for their business going forward.

It will end up doing three key things for them and this is what will happen to their stock price.