This is the secret sauce that the SOFI warehouse needs for fintech success

SoFi technologies (NASDAQ:SOPHIE) is a bank, but we can also think of it as a technology company. Even if you intentionally avoid stocks in the financial sector, SOFI stocks may still deserve a spot on your watchlist.

That’s because SoFi Technologies can secure its place as a fintech standout by protecting its customers in these uncertain times.

Perhaps the most important lesson that banking sector investors have learned in 2023 is: Trust is everything. Without trust, banking and fintech firms will not survive in the long run.

Therefore, SoFi Technologies must continue to reassure its customers and shareholders that they can be trusted. SoFi Technologies is staying proactive and demonstrating its reliability, which should reassure some nervous bankers and investors.

SoFi Technologies is diversifying its business model

One way SoFi Technologies can secure its place in the fintech world is by being and doing more than traditional banks. SoFi is already a digitized one-stop shop that offers savings and investment services along with financial planning, credit cards and loans.

Thus, it is easy to see why young bankers would turn to SoFi Technologies for all their personal finance needs. Still, SoFi is diversifying its business operations as the company moves ambitiously into the mortgage market.

Specifically, SoFi Technologies recently acquired a mortgage lender called Wyndham Capital Mortgage. As you might expect, SoFi targeted a digital-first firm.

With this acquisition, SoFi Technologies’ customers can now access Wyndham’s “intelligent and scalable platform that has set the industry standard for a complete digital mortgage experience.”

The banking crisis and the SOFI share

Again, it’s understandable if you don’t want to buy bank stocks right now. The implosion of SVB Finance Group (OTCMKTS:SIVBQ) subsidiary Silicon Valley Bank and Signature bank (OTCMKTS:SBNY) left a bad taste in the mouths of financial sector investors.

SoFi Technologies does not belong in the same category as Silicon Valley Bank and Signature Bank. SoFi is still standing and should be able to fulfill its customers’ withdrawal requests.

If trust really matters, SoFi Technologies is on the right track. The company is establishing itself as a trusted place to park your money, as SoFi offers $2 million in Federal Deposit Insurance Corporation insurance per customer account. Remember, the industry standard for FDIC-backed deposit insurance is $250,000 per account.

SoFi Technologies goes far beyond the minimum requirements for customer account protection. So, there’s really no need to obsess over the banking crisis if you’re thinking of investing in SoFi Technologies.

This company is not the same as Silicon Valley Bank and Signature Bank, and may actually increase its reputation in times of crisis.

What you can do now

SoFi Technologies is already taking steps to secure its place in the fintech world. Hopefully, the company will continue to demonstrate its reliability and trustworthiness.

Sure, there’s risk involved if you’re invested in SoFi Technologies. The banking sector is shaky right now, so don’t overload your account with SOFI shares. Still, if you’re willing to accept the risk, consider a very small stock position in SoFi Technologies.

As of the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.