The intersection of finance and technology, or ‘fintech’ as the unimaginatively-named industry insists on calling it, continues to be one of those phenomena that makes you suspect reality is being generated by a slightly faulty algorithm. It’s a bit like discovering your toaster is secretly running a complex simulation of the Cretaceous period – improbable, yet undeniably… happening. And within this swirling vortex of digital disruption, two companies, SoFi Technologies (SOFI +1.23%) and Nu Holdings (NU 2.62%), are currently experiencing what one might charitably call ‘growth’. (Though, technically, everything is growing, even dust. It’s just a question of scale and whether anyone notices.) Investors, rather predictably, have noticed, with SoFi’s shares rising by approximately 190% in the last 36 months and Nu’s by an even more enthusiastic 260%. The question, then, isn’t whether these companies are interesting, but which one offers the marginally less bewildering investment opportunity at this particular juncture in the space-time continuum.
SoFi: Profits Ascending (Mostly)
SoFi, it appears, has mastered the art of increasing its top line. Between 2022 and 2025, adjusted revenue soared by a rather respectable 140%. This was achieved, largely, by expanding its customer base from 5.2 million to 13.7 million. (Which, if you think about it, is a lot of people trusting a company with their money. A truly astonishing number, when you consider the general state of things.) The company’s all-digital offerings are, unsurprisingly, proving popular, with SoFi diligently developing products to better serve its members. (One assumes this involves more than just politely asking what they want. Though, honestly, that would be a good start.)
But the truly remarkable thing isn’t just the revenue growth, it’s the fact that SoFi is actually, demonstrably, making a profit. In 2022, they reported a net loss of $320 million. Last year, however, things took a turn for the better, with an adjusted profit of $481 million. And management confidently predicts that adjusted earnings per share will increase at a compound annual rate of between 38% and 42% between 2025 and 2028. (Which, if maintained, would mean they’re essentially printing money. A skill previously thought to be the exclusive domain of central banks and particularly resourceful pirates.)
Nu: Global Ambitions (and a Lot of Customers)
As of the end of 2025, Nu boasted a staggering 131 million customers – a 15% increase year-over-year. It has a significant presence in Mexico (14 million customers) and Colombia (4.2 million). However, it truly dominates its home country of Brazil, where it counts 62% of the adult population as customers. (Which is either a testament to its brilliance or a worrying sign about the financial literacy of the Brazilian populace. Or, perhaps, both.)
But Nu isn’t content with simply dominating one country. It has grand ambitions of global expansion, with plans to launch operations in the U.S. sometime next year. (A bold move, considering the U.S. banking industry is a mature, developed, and fiercely competitive landscape. It’s a bit like trying to sell ice to Eskimos, only with more regulatory hurdles.) The management team, however, deserves the benefit of the doubt. They may, for instance, be targeting the U.S. Hispanic population, which represents approximately 20% of the country’s residents. (A perfectly logical strategy, assuming they can accurately identify and appeal to this demographic. And assuming the Hispanic population is, in fact, interested in banking with a Brazilian company. It’s a complex equation.)
This expansion, if successful, should help maintain Nu’s impressive growth trajectory. Revenue surged 45% in 2025, with net income up an even more impressive 51%. (Numbers that, frankly, are starting to feel a little… improbable.)
The Question of Fintech Exposure (and Your Sanity)
Both SoFi and Nu are thriving, which makes choosing between them… difficult. The most sensible approach, perhaps, is to simply invest in both. (A strategy that avoids the agonizing process of making a difficult decision. And, let’s be honest, that’s often the most rational approach.) Investors seeking exposure to the fintech trend would do well to consider both of these stocks.
Over the next five years, I suspect both SoFi and Nu have the potential to deliver strong returns. This view is supported by their ongoing fundamental gains. (Though, of course, the future is inherently uncertain. And, as any seasoned investor will tell you, past performance is no guarantee of future results. Which is a wonderfully circular statement, when you think about it.)
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2026-03-12 11:03