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I’m enthusiastically bullish on SoFi Technologies (NASDAQ:SOFI) stock because the company is both a legitimate bank and a modern financial-sector pioneer. Yet, SoFi Technologies isn’t the only fintech firm you should consider in 2023.
Indeed, there’s a certain “upstart” (hint, hint) that’s effectively deploying artificial intelligence to make the lending process fairer and more efficient.
So, to diversify your fintech investments, keep SoFi Technologies on your radar along with an equally disruptive company with powerful growth potential.
Student Loans and SOFI Stock
There’s been a lot of chatter about the resumption of required federal student loan repayments. Without a doubt, this will benefit SoFi Technologies, which earns some of its revenue by helping people refinance their loans.
Sure, Bank of America analysts are bullish on SOFI stock because America’s federal student loan borrowers will have to repay their debts. Yet, that’s not the only reason to consider investing in SoFi Technologies now.
SoFi Technologies is a legitimate bank that holds a national bank license.
SoFi Technologies showed its commitment to safety and security by offering access to up to $2 million in Federal Deposit Insurance Corporation insurance for qualifying checking and savings accounts. The industry standard FDIC insurance protection is $250,000 per qualifying account.
In addition, SoFi Technologies is boldly venturing into the initial public offering space. Specifically, SoFi Technologies will serve as an underwriter for the highly anticipated stock market debut of grocery delivery app provider Instacart.
Check Out This Fintech Firm
As much as I like SOFI stock in 2023, I believe it’s a good idea to diversify your fintech-sector holdings. There’s another company that’s just as intriguing as SoFi Technologies, and it has a strong AI connection.
In case you didn’t figure it out by now, I’m referring to Upstart (NASDAQ:UPST). This company deploys AI technology to make the borrowing and lending process more accurate and, ultimately, fairer to everyone involved.
Upstart is like SoFi Technologies because both companies seek to disrupt and threaten stodgy, traditional big banks. But if you want direct portfolio exposure to AI tech, UPST stock is a great choice.
Lately, a number of credit unions have partnered with Upstart to upgrade their lending practices with AI. One recent example is Farmers Insurance Federal Credit Union, and another one is Naveo Credit Union.
Certainly, I’m not suggesting that SoFi Technologies isn’t participating in the AI revolution of the 2020s. However, you can invest in both SoFi Technologies and Upstart to achieve a more diversified and tech-enhanced portfolio.
SOFI Stock + UPST Stock = a Power-Packed Combo
Even beyond the resumption of required federal student loan repayments, there are compelling reasons to believe in SoFi Technologies.
For instance, SoFi Technologies has a product called Konecta, which is an “AI natural language customer service bot.”
But for more direct AI-market participation, plus more diversification, I recommend buying both SOFI stock and UPST stock.
So, consider small, equal-sized share positions in SoFi Technologies and Upstart for potentially super-sized fintech-market returns.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.