Both SoFi and Nu seem poised to attract millions of new users in the coming decade.
Investing in financial stocks might feel a bit precarious right now, especially with falling interest rates. Traditional banks aren’t earning as much from new loans, which can discourage savers. This narrowing gap between the interest earned and interest paid isn’t great for profits.
However, rapidly growing fintech companies that offer a wider range of digital banking services could still present attractive long-term investment opportunities. They’re pulling users away from traditional banks. Let’s dive into two of these stocks — SoFi and Nu — and explore how $1,000 might grow over the next ten years.
SoFi
SoFi, launched in 2011, started off just providing student loans. Since then, it’s grown into a comprehensive platform for various banking services like auto loans, home loans, personal loans, credit cards, and even trading stocks and cryptocurrencies. They also acquired a digital payment processing company, Galileo, in 2020 and opened their own bank after receiving a U.S. banking license in 2022.
Key Data Points
Market Cap: $33 billion
Current Price: $26.13
Today’s Change: -1.17% (-$0.31)
52 Week Range: $8.60 – $32.73
Thanks to its digital-first strategy, SoFi can adapt and grow more quickly than traditional banks. This approach has attracted a lot of younger customers from the Millennial and Gen Z demographics. By the end of 2021, SoFi had about 2.5 million members using 1.9 million products. By late 2025, they expect to have around 12.6 million members and 18.6 million products in use. Galileo independently manages roughly 160 million accounts.
Even with challenges like a freeze on student loan payments and rising interest rates hindering growth, SoFi is moving forward. These challenges are easing, and the company is innovating more paid services to offset any negative effects of interest rate changes.
Analysts predict SoFi’s revenue and earnings before interest, taxes, depreciation, and adjustments (EBITDA) will grow at rates of 23% and 38%, respectively, from 2025 to 2027. With a valuation of $31.5 billion at 19 times this year’s adjusted EBITDA, there’s a potential for even greater growth as the fintech sector expands.
New Holdings
Founded in 2013, Nu owns NuBank, which is Latin America’s largest direct bank. Similar to SoFi, Nu has quickly gained traction by appealing to younger customers. Historically, a significant part of the adult population in Latin America was unbanked. However, many have chosen NuBank’s online services over traditional banks.
Key Data Points
Market Cap: $80 billion
Current Price: $16.60
Today’s Change: -0.06% (-$0.01)
52 Week Range: $9.01 – $18.37
From 2021 to late 2025, NuBank’s customer count more than doubled from 53.9 million to 127 million, while its activity rate climbed from 76% to 83%. To fuel this growth, they’ve diversified their lending options, added e-commerce features, and included cryptocurrency trading.
Nu primarily operates in Brazil, Mexico, and Colombia but hasn’t yet moved into smaller Latin American markets. However, with a recent application for a U.S. banking license, their future in the American market looks possible.
Looking ahead, analysts suggest Nu’s revenues and earnings per share (EPS) could grow at rates of 30% and 37%, respectively, from 2025 to 2027. Although the stock might seem pricey at a P/E ratio of 46 times this year, it still holds significant upside potential.
The Latin American fintech market is projected to grow at a rate of 15.1% from 2026 to 2034, driven by increasing income levels and improved internet access. As a leader in this growing space, Nu has the opportunity to acquire millions of new users in the decade ahead.
