$SoFi Technologies (SOFI.US)$
SOFI is a typical case of sounding very promising, but the reality is very tough business.
First, the so-called one-stop service is all launched through cooperation with third parties. It looks really fast. In 2019, there were money management, wealth management accounts, and home loans; in 2020, limited family wealth planning and credit cards; in 2021, auto loans. It seems like there are new things every year, but none of them are developed through internal growth. Can you collaborate with others for a short time to develop so many products, but others cannot? There is simply no competitive barrier here.
Secondly, closely related to the first point is that I haven't seen many customers using multiple products. In other words, this large platform strategy has not been effective, and the company has spent a lot of money on market marketing and brand loyalty programs. The cash flow situation has been getting worse in recent years, and now it may also be entering a recession, which is the last straw.
Third, getting a banking license does not change the core business and business model of the company itself. The company used to only issue bonds and then distribute them through securitization. Now, with a bank, it just means using customers' savings to increase the time difference between issuing bonds and selling them, and earning a little interest spread in the process. The essence is still relying on the capital markets, and the core has not improved.
Fourth, the main business is still credit card consolidation...