Better Buy: SoFi vs. LendingClub
SoFi and LendingClub (NYSE: LC) are two fintechs that have been making lots of headlines lately. SoFi is going public through Chamath Palihapitiya's blank-check company Social Capital Hedosophia Holdings Corp. V (NYSE: IPOE). LendingClub, which went public in 2014, recently completed its acquisition of Boston-based Radius Bank, which marks a second chance for the once-beleaguered company.
Given the fact that both SoFi and LendingClub are heavily involved in consumer lending and both have either secured or will soon have a bank charter, the two offer an interesting comparison. Let's look at which one presents the better investment opportunity right now.
SoFi offers student, personal, and home loans. The company also has an online brokerage and other financial services such as cash management. Last year, SoFi purchased the fintech Galileo, a platform that helps other fintechs carry out front- and back-end functions such as account setup, account funding, direct deposit, authorizations and processing, and more. Galileo also manages card programs for enterprise partners. All of these activities generate a solid stream of fee income.
Source Fool.com
