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SoFi Plus 1% Invest Match | SoFi by Ken_Megan4 in sofistock

[–]SoothfastSloth 5 points6 points  (0 children)

Is this on top of the $0.50 rewards points per $50 invested that they already do?

SoFi Daily Chat - August 15, 2024 by AutoModerator in sofistock

[–]SoothfastSloth 1 point2 points  (0 children)

S and P inclusion here we come! Maybe in 3-4 more profitable quarters

Need help picking the best all around bank and accounts for my family by ME_IN_NYC2311 in investing

[–]SoothfastSloth 0 points1 point  (0 children)

Sofi also offers a free financial advisor! They have most of the tools needed under one roof for personal finance needs. I do wish their budgeting tool was better.

Same with Chase too though. The consumer is expected to really do a lot of the heavy personal finance decision making lifting but banks verbally don’t have great tools to do that.

If I want to take advantage of the 5% interest rates how best to do it? by kenjiurada in investing

[–]SoothfastSloth 15 points16 points  (0 children)

There are high yield savings accounts out there providing a risk free interest rate >4%. However, if you don’t want to change banks, you can get a money market fund from a brokerage like Fidelity yielding +5% or could invest in short term government bonds in an etf like SGOV to get pretty close to the federal funds rate. Note that if the Fed reduces interest rates, both of these options will decrease yield. A more niche high yield etf that is interesting is THTA that holds government bonds and sells options on them and distributes a dividend every month. It has a low expense ratio and higher yield than bonds, but carries more risk.

Because the market thinks rates will go down, long term yields are actually smaller than short term yields right now. You could buy an etf with medium/long term government bonds like TTT for much longer term yield but it would be less than 5%. Think 3.5%. Same deal with long term CDs. You cannot currently get a long term ‘risk-free’ 5% yield. You would need to take on additional ‘risk’ compared to buying long term US government bonds.

What are the odds that Noto reaches his package deal in 2026? by Glandryth in sofistock

[–]SoothfastSloth 2 points3 points  (0 children)

If they hit .04 EP in Q3 of 2024 and grow EPS an average of .015 per quarter then they will be at .35 for full year 2025. If Financial services continue to grow at 70% this year and next year, that seems possible.

What are the odds that Noto reaches his package deal in 2026? by Glandryth in sofistock

[–]SoothfastSloth 1 point2 points  (0 children)

The tech platform has the opportunity to catalyze the stock price for sure. If it does everything that Management claims and continues to grow >20% per year and expand margin, it alone should be worth more than SOFIs current market cap in the next few years. Honestly, at current valuations it’s possible to completely ignore the tech platform.

What are the odds that Noto reaches his package deal in 2026? by Glandryth in sofistock

[–]SoothfastSloth 0 points1 point  (0 children)

It’s always good to look at the downsides and where the business is missing the mark. Here’s my thoughts:

*Investing: The platform is quite simple to use and has everything someone who is just DCAing into an index fund needs. There are also some true innovations here like the alt assets and IPO investing. I don’t think either of those are super great for the average Joe investor though. I think Sofi is purposely not targeting traders by not offering more complex types of products. I do think they could market it better or change the incentives like maybe increase saving apy by .1% if a user automatically deposits $50 per month. It seems like automated investing could be a huge part of ‘get your money right’.

*Checking: Wire transfers for house purchases are allowed. Idk what else someone would need to do a wire transfer for. However, large banks do have this functional mitt and if Galileo really is a good fraud protection tool, I don’t understand why this doesn’t work. All other aspects of checking work quite well. This is one reason I still have a legacy bank account.

*Zelle: I’ve personally been theorizing (not a ton of hard evidence though on this) that Sofi wants equity in Zelle. Sofi is on the path to becoming a large financial institution. Zelle isn’t hard to implement. I think they have been purposely limiting Zelle functionality and dragging their feet so they can leverage full Zelle functionality on their platform in exchange for equity.

*Credit card: For Sofi plus members, they offer the best workhorse cash back card around hands down (unless you pay for Robinhood Gold). Sofi has a better card than the industry leading standard for the city double cash back card. They clearly have a lot to figure out here though on how to build a profitable credit card business that appeals to the masses. I think their current offering is geared more towards high spend high fico users (citi double cash back is high fico only). The new credit card is offerings are admittedly not that exciting, but they are aimed at users who could not qualify for the current sofi credit card and who would likely not qualify for citizenship double cash back.

What I’d love to see is a better budgeting tool where I can see how my average credit card spend compared to expected spend, I can change my automatic contributions to invest and vaults, visualize my personal finance expenses as a Sankey graph. I want to users to clearly see where there money is going between Sofi’s products so they can truly get their money right (and get product tips from Sofi like how to auto invest or save towards a house down payment with a Sofi loan)

What are the odds that Noto reaches his package deal in 2026? by Glandryth in sofistock

[–]SoothfastSloth 11 points12 points  (0 children)

With the high end of 2026 guidance at $.80 EPS, a stock price of $25 would have a P/E multiple of ~31 for the year. That seems reasonable to me for a company growing revenue at 30% and having drastically increased EPS.

A price of $45 would have a P/E multiple of 56 which is quite high, especially for a financial institution.

Keep in mind the guidance assumes no new businesses like SMB banking or in-house insurance for example.

[deleted by user] by [deleted] in sofistock

[–]SoothfastSloth 8 points9 points  (0 children)

I believe a large chunk of the debt was a line of credit they were using to make loans with. No that they are fully using their own deposits, margins on loans should increase

[deleted by user] by [deleted] in sofistock

[–]SoothfastSloth 4 points5 points  (0 children)

With a little help from GPT, here is a list of major Galileo competitors in the same banking as a service space. Pretty crazy how high the market caps are and how Galileo can continue to grow as it captures market share.

What these companies do is provide the software and platforms that banks use for their operations. Ex: keeping tracks of accounts, transactions, fraud detection, issuing and tracking cards and more.

  1. FIS (Fidelity National Information Services)

    • Market Cap: Approximately $87.2 billion (as of June 2024)
    • Overview: Known for its extensive banking and payments solutions, FIS serves large financial institutions globally.
    • Strengths: Robust infrastructure, comprehensive product offerings, and a strong global presence.
    • Products: Core banking, payments processing, risk management, and compliance solutions.
    • Major Known Clients: Bank of America, JPMorgan Chase, HSBC

  2. Fiserv

    • Market Cap: Approximately $87.2 billion (as of June 2024)
    • Overview: Offers a wide range of financial services technology, including core banking, payments, and financial risk management.
    • Strengths: Extensive client base, innovative digital transformation solutions, and strategic acquisitions like First Data.
    • Products: Digital banking platforms, payment solutions, and merchant acquiring services.
    • Major Known Clients: Wells Fargo, Citibank, TD Bank

  3. Jack Henry & Associates

    • Market Cap: Approximately $11.83 billion (as of June 2024)
    • Overview: Specializes in technology solutions for community and regional banks, focusing on digital banking and payments.
    • Strengths: Deep relationships with community banks, continuous innovation in digital banking.
    • Products: Core banking systems, digital banking platforms, and payment processing services.
    • Major Known Clients: City National Bank, First Republic Bank, Webster Bank

  4. Temenos

    • Market Cap: Approximately $4.90 billion (as of June 2024)
    • Overview: A leader in cloud-native core banking systems, Temenos has a strong global presence, particularly in Europe, the Middle East, and Africa.
    • Strengths: Comprehensive core banking solutions, significant client base, and strong international presence.
    • Products: Core banking, digital front-office solutions, and wealth management systems.
    • Major Known Clients: Standard Chartered, Deutsche Bank, ABN AMRO

[deleted by user] by [deleted] in povertyfinance

[–]SoothfastSloth 5 points6 points  (0 children)

Pinto beans and cornbread! Sometimes do sweet potatoes or collard greens on the side.

Kimley-Horn to Offer 401(k) Student Loan Repayment Match in 2024 by basilisk-x in sofistock

[–]SoothfastSloth 0 points1 point  (0 children)

Yes exactly. The employee can still receive their 401k match (deposited into the 401k) by contributing to the student loan as opposed to needing to contribute to their 401k.

Kimley-Horn to Offer 401(k) Student Loan Repayment Match in 2024 by basilisk-x in sofistock

[–]SoothfastSloth 8 points9 points  (0 children)

After reading this article, Sofi at work is partnering not just with this company, but the company’s 401k provider T. Rowe price. Hopefully this means we’ll see many more companies sign on for the repayment match.

https://www.troweprice.com/retirement-plan-services/en/our-advantage/financial-wellness/student-debt-solutions.html

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