Thinking about divesting all of your bank stocks? Don’t be too hasty, as there will be winners in the financial sector even as some banks fall by the wayside. SoFi Technologies (NASDAQ:SOFI) represents the future of personal finance with features that should appeal to finicky bankers. In addition, SOFI stock is a prime pick because SoFi Technologies looks rock-solid and reliable compared to some less reputable businesses.
First, there was the scandal involving cryptocurrency exchange FTX. Not long afterward, regional banks started to show cracks in the foundation of the U.S. financial sector. It’s enough to make people want to keep all of their wealth in a shoe box underneath the bed.
Yet, there’s no reason to panic. SoFi Technologies provides a comparatively safe haven for its customers, and a potential growth opportunity for its shareholders. With that in mind, let’s see what sets SoFi Technologies apart as a bank that you can bank on.
SoFi Technologies Bolsters Its Bona Fides
First, SVB Financial Group (OTCMKTS:SIVBQ) subsidiary Silicon Valley Bank and Signature Bank (OTCMKTS:SBNY) imploded. Then, more recently, First Republic Bank (NYSE:FRC) failed. Like it or not, 2023 will probably be remembered as the year of bank-failure contagion.
Will SoFi Technologies be the next domino to fall? Not likely. SoFi Technologies didn’t over-leverage itself on cryptocurrency or Treasury bonds. Plus, SoFi was never in need of a rescue plan like First Republic Bank was.
SoFi Technologies isn’t just an app. It’s a legitimate, federally chartered bank. Moreover, while lesser banks are failing, SoFi is actually broading its business model. As Thomas Niel explained, “Acquisitions like its recent deal to buy mortgage lender Wyndham Capital further bolster its bona fides as a financial services giant in the making.”
Bet on Better Banking With SOFI Stock
I fully agree with Niel’s prediction that SOFI stock “is poised to come out ahead” as “uncertainties pass.” Customers want peace of mind in 2023. To address this concern, SoFi Technologies made a brilliant move by offering up to $2 million worth of Federal Deposit Insurance Corporation (FDIC) insurance per customer account. That’s substantially higher than the industry standard $250,000 protection per account.
Not only is SoFi Technologies a comparatively safe place to park one’s capital, but it’s also ideal for ambitious savers. For instance, SoFi checking and savings offers direct deposit members a 4.2% annual percentage yield (APY). That’s 10 times the average savings rate for U.S. banks.
Additionally, it’s easy to see why Millennials and zoomers, who are now building up their finances, would appreciate SoFi Technologies’ policies of zero account fees and no-fee overdraft coverage. Truly, with its combination of safety assurance and money-saving features, SoFi Technologies represents the future of personal finance.
Don’t Be Afraid to Give SOFI Stock a Try
Banking-sector failures are alarming, but they only make SoFi Technologies look better in comparison. There’s no denying that SoFi’s higher-than-standard FDIC protection sets the company apart as a secure place to park one’s money.
So, don’t assume that all bank stocks are toxic in 2023. SoFi Technologies is a legit bank that’s poised to capture the hearts and wallets of young savers. Therefore, even as the headlines point to U.S. banking failure contagion, SOFI stock is a must-own for future-thinking investors.
On the date of publication, David Moadel 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.