Happen vs. SoFi: Which Fintech is the Better Bet?

In the current year, fintech companies Happen Bank and SoFi are on contrasting trajectories. Happen Bank has seen a 2.9% increase in its stock value, while SoFi has experienced a substantial 31.5% decrease. This divergence is notable, as SoFi often garners more attention. Both entities are key players in disrupting the U.S. consumer credit market through technology-driven personal loans. These loans offer rates lower than credit cards but higher than traditional bank offerings, capitalizing on a massive $1.35 trillion revolving credit market. Upstart is another notable fintech in this space.

Happen Bank and SoFi have both obtained banking licenses, allowing them to hold loans on their balance sheets and accept deposits, distinguishing them from many competitors. They focus on borrowers with good credit. SoFi, in particular, is perceived as a more 'tech-like' company, boasting naming rights to a major stadium and offering technology services such as payment processing and ledger technology to other businesses.