The banking landscape is ruled by the likes of Citigroup, Bank of America, Wells Fargo, JPMorgan Chase, and others. Smaller players like SoFi ( SOFI 6.22% ) have made their mark against the big guys by identifying fragmentation and inefficiencies in the personal banking industry. Many of the services offered by legacy incumbents are archaic in nature and do not resonate with the rising popularity of mobile-first services.
SoFi’s latest acquisition signals the company is doubling down on tech-enabled services that cater to this new class of customers. It also offers some clues on how it plans to become the one-stop shop for consumer-oriented personal finance.
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Encouraging underlying trends
SoFi originally began as a lending business, and the majority of its revenue still derives from loan obligations. However, management has made a conscious effort to diversify its revenue streams and branch out beyond loans over the last few years.
Roughly two years ago, SoFi acquired banking-as-a-service company Galileo. This was a savvy…
