SoFi Technologies (NASDAQ:SOFI) is struggling.

Fluctuations in interest rates could negatively affect its business lines. Federal Reserve Chairman Jerome Powell has indicated that that the economy is probably going to clear the bars set by the Fed for raising interest rates in the coming months.

With these issues come fears about the digital bank’s stability going forward if these events occur or continue to affect lending rates across all industries, which are reflected positively or negatively when computing margins accordingly. Nevertheless, SOFI stock has been down 23% in the last month, creating an excellent opportunity for value investors.

SoFi’s recent expansion into the world of cryptocurrency, credit cards and investing services has caused rapid growth in membership. The easy-to-use personal finance app allows fast transactions, attracting more people with different needs to Sofi’s products.

Additionally, it brings a host of products such as home loans, student loan refinancings, and insurance products under one app. So, not only are you getting an incredible servicing experience with them.

SoFi’s product offerings have expanded greatly during the pandemic and now offer 4.3 million different products to its members, leading to impressive growth for its user base.

The number of members increased by over 35% to 2.9 million in Q3. Some financial service providers are starting to offer new investment products that cater to the growing demand for alternative investments.

These include fractional investing and digital currencies, with more companies expected in this field as they see how popular it has become among their clientele base.

SoFi’s Business Model Is Strong

SoFi’s business has been booming during the pandemic. People are forced to work remotely, and as such, they have flocked towards Sofi’s finance platform since it offers services like loans.

SoFi’s customer base stands at 2.94 million at the end of the third quarter. The pandemic saw the company add 1.96 million new members to its ecosystem, dramatically expanding its cross-selling potential exponentially during this period when it seemed like everyone was trying to get out ahead by flooding markets with money and credit options.

SoFi has experienced a slowdown in member growth, with a third-quarter rate at 96% year over year. It is slower than during the first and second quarters. However, it is still a very healthy number.

SoFi’s future is bright, despite the slowing of customer sign-ups post-pandemic.

SoFi has an opportunity to tap into the lucrative personal finance market. More than half of Americans use two or more different banks for their financial needs. This decade, its easy-to-use app and major growth in lending products position it unique among competitors.

Pagaya Partnership Is a Boon for SoFi Stock

SoFi will have a tough time trying to keep up with growth without compromising quality. I believe that partnering with Pagaya Technologies could help them in this endeavor.

Pagaya Technologies is a fintech company that has created an AI-driven credit and analysis technology. Their platform allows companies like SoFi to make more informed decisions about who should be given loans or not through their services.

Pagaya uses big data analytics for this purpose. The whole process provides insights into customer behavior patterns. Overall, loan processing and approval are quicker due to this technology. Consequently, the partnership between these two entities is causing a lot of excitement.

Today’s legacy credit models and underwriting systems are inefficient. They are often siloed. The data is not shared across all lenders. That means prospective customers face delays when processing their loans. In many cases, they go elsewhere. Losing customers is not a great business model for a company still at a nascent stage.

The API plug-in from Pagaya offers SOFI the ability to integrate their credit model with minimal latency and create more well-informed decisions. This is a sure way to stimulate volumes and growth. Pagaya has made real-time decisions to evaluate an application every second, which means that SOFI will likely see quick upturns in their volume levels!

SOFI’s management is on record stating that they are currently only meeting 30% of the demand for their unsecured personal loan requests. That is because many potential clients don’t quite have adequate credit profiles.

SOFI can now offer digital financial services to prospective clients in addition to traditional loan products. These new AI-powered options use credit profiles, pricing models, and other more tailored factors for each customer’s needs, so they don’t need only one type of account – which means better service overall!

SoFi Is Still Growing at a Very Healthy Rate

After the pandemic, SoFi’s member and revenue growth has slowed down. However, despite this change in fortune for them, it is still one of the fastest-growing companies on Wall Street.

Growth can go back into overdrive if the omicron variant keeps spreading at a fast pace. At the moment, this variant is a point of concern for economies all around the world. If its rate continues to grow without any mitigation efforts, it could lead to a return to mass lockdowns. However, we could see yet another boost for SOFI stock.

Barring that scenario, SoFi’s growth will still be healthy. It will just not be as good as the growth we saw this year. SoFi will have to compete with other financial technology companies and banks not only to maintain but also to grow their market share.

SoFi also doesn’t have a moat. Rivals can build similar digital banks and compete on aggressively low margins, which means the company needs to maintain its finance platform with new features for customers. Hence, they continue using it to not lose revenue due to competition.

SoFi has a long way to go before slowing down. The revenue forecast for FY 2021 implies that the company will grow between 61% and 63%.

For the fiscal year 2022, SoFi is projected to reach a revenue of $1.5 billion in increasing its growth rate by 47% over last year’s numbers. Although these percentages will slow down in the coming years, they will still outpace traditional banks.

SoFi Stock Is Attractive at These Rates

SoFi stock has dropped very steeply since November. A respectable third-quarter could not do anything to arrest the decline. Despite the drop in pricing since November, SoFi’s forecast for FY 2021 revenues is up.

SoFi’s customer base will continue to grow at very high rates in the future, even as they experience a continual slowdown post-pandemic. That’s why SoFi stock is trading at such attractive price multiples; it presents a very attractive opportunity.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.