Financial technology (fintech) is gaining popularity with each passing year as consumers look for convenient and easy ways to manage their finances. Whether it is a loan or an investment, we want it at our fingertips at a moment’s notice, and SoFi Technologies (NASDAQ:SOFI) is here to make it possible. The company’s moves in the industry make SOFI stock a valuable fintech play.

Many consumers are no longer willing to visit the physical branch of a bank or investment company. They seek the comfort and convenience of having everything on their smartphone.

This is where SoFi comes in. The company has already disrupted traditional banking and is consistently growing its user base. It is broadening the lineup to make it a complete one-stop-shop for all your banking needs.

SOFI stock has gone from $22 to $15 in a month and it might continue to show volatility in the short term. However, several catalysts make the stock a solid long-term play. Let’s take a look at those factors.

SoFi Has Stellar Financials

Investors are generally concerned about the fundamentals of a company, and SoFi doesn’t fail to impress here. It is growing at a rapid pace, and its member growth is proof of the same. The company saw an increase in members for eight consecutive quarters as of August, which is nothing but impressive.

SoFi is growing big and growing fast. In the recent quarter, its membership grew by 96% to 2.9 million. This means the company’s products are a huge success, which is leading to a rise in user base.

Each new member using the product is generating more revenue. It has also seen its number of Technology Platform accounts rise by 80% to 89 million. The company’s revenue, users and products are growing rapidly.

What works for SoFi is its unique products and services. It has simplified banking for users and makes it accessible through one platform for all. The company is investing aggressively in its products and consistently growing its offerings. Whether it is a brokerage account, student loan or home loan, everything is accessible from a single platform.

SoFi might not have to incur a huge expense to grow in the coming years, and this is when the revenue will be higher than the operating expenses. This will have a strong impact on the bottom line and work well in driving the company’s financial performance.

SOFI stock is falling, but as long as the company is delivering strong revenue and growing its user base, it is a buy.

SoFi Could Be a Large Bank Someday

I have written about this in the past, and I will continue to do so here. SoFi submitted an application to become a bank holding company in March 2021, and it announced its intention to acquire Golden Pacific Bank. If everything goes as planned, SoFi will have a national bank charter and it could be huge.

The company will try to make the most of this opportunity and use it to transform the business. It will no longer have to rely on bank partners for money management solutions, and it will also be able to provide deposit accounts to its members.

Once the bank charter is granted, SoFi won’t look back. It will push SOFI stock to a new high, signifying a turning point in the business. I believe this is reason enough to bet on the stock right now. The company has major growth potential and big plans to transform the industry.

The Bottom Line on SOFI Stock

Considering its member growth and strong fundamentals, it looks like SOFI stock is undervalued. This is a solid opportunity to add it to your portfolio and make the most of the dip. It will not be trading at this level for long.

SoFi is already attracting new users quarter after quarter, and its fundamentals are impressive. Once the company receives the bank charter, the sky is the limit for SOFI stock.

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.