Financial Comparison: SoFi Technologies versus Nu Holdings in the Fintech Industry

In the dynamic world of fintech, two standout performers, SoFi Technologies and Nu Holdings, continue to make waves in the financial market.

Nu Holdings, a company that has made significant strides in Latin America, has recently expanded its operations beyond Brazil into Mexico and Colombia. This move aims to provide banking services to millions of unbanked and underbanked individuals in these regions.

SoFi, on the other hand, has evolved into a one-stop financial hub, offering a wide array of financial products such as student loan refinancing, personal loans, mortgages, credit cards, investment services, and insurance. Both companies own and operate rapidly growing fintech platforms that integrate multiple financial services like banking, lending, and payments into a single app.

SoFi's growth potential is tied to customer expansion and product depth. Its 2022 acquisition of Golden Pacific Bancorp gave it direct access to low-cost deposits, lowering its cost to fund loans compared to warehouse and securitization financing. This strategic move has significantly contributed to SoFi's growth, as evidenced by its deposit base growing from zero to over $29.5 billion since the acquisition.

In the first half of 2025, SoFi originated $12.5 billion in personal loans and another $2.1 billion in student loans, driving $483.6 million in contribution profit. Nu Holdings, similarly, is making a strong impact. It offers credit cards, digital accounts, and loans to millions previously excluded from the banking system.

However, both companies face a challenge in scaling profitably while competing with traditional banks and other fintech companies. Managing credit risk in volatile economies while achieving profitable growth at scale is Nu Holdings' primary challenge. SoFi, too, is navigating the competitive landscape, striving to maintain its growth momentum.

As for their stock performance, both Nu Holdings and SoFi Technologies are shining stars in the stock market. Since the beginning of 2024, Nu Holdings has seen a gain of 84%, while SoFi Technologies has recorded a impressive 156% growth. Nu Holdings' stock (NYSE: NU) is currently priced at $14.74, with a market cap of $71B.

Investment advisory firm, The Motley Fool, has acknowledged Nu Holdings' success, with its total average return clocking in at 1,065%, significantly outperforming the S&P 500. However, The Motley Fool's Stock Advisor analyst team did not include SoFi Technologies in their list of the 10 best stocks for investors to buy now. Given its cheaper valuation on a forward basis, Nu Holdings may be considered a better buy today compared to SoFi Technologies.

In Mexico, Nu Mexico received approval to transition into a full-service bank, further solidifying its presence in the Latin American market. Nu Mexico now serves 12 million customers, a testament to its rapid growth and commitment to financial inclusion.

As these fintech giants continue to expand and innovate, they are set to revolutionize the financial landscape, offering accessible and affordable financial services to millions who were previously underserved.

Financial Comparison: SoFi Technologies versus Nu Holdings in the Fintech Industry