Felix Prehn’s Case for SoFi in 2025: Why Goat Academy Sees Upside
Discover why Felix Prehn of Goat Academy believes SoFi could surge as rates fall. Simple breakdowns of student-loan tailwinds, deposits, crypto, and bank-license advantages.
Felix Prehn, an investor and educator at Goat Academy, shares a straightforward view on why SoFi Technologies could be a standout stock into 2025. His analysis focuses on falling interest rates, SoFi’s low-cost deposit base, strong customer quality, the return of crypto services, and the power of a U.S. banking license. This overview explains each driver in simple terms, with brief definitions for clarity.
SoFi at a glance
SoFi is a modern financial company built for mobile use. It offers savings, checking, loans, credit cards, investing, and more. Unlike old banks with many branches, SoFi runs with a digital-first model. This helps keep costs low and pass more value to users. Recent company updates show momentum: revenue up 44% year over year, profit up 459% year over year, 850,000 new customers last quarter, 11.7 million total customers, and about $30 billion in deposits. These numbers suggest scale and improving efficiency.
Why falling interest rates matter
Definition: A “rate cut” is when the Federal Reserve lowers the base interest rate. This lowers borrowing costs across the economy.
Effect on SoFi: Lower rates reduce SoFi’s own cost of funding. SoFi can then lower the rates it offers on loans while still keeping an edge over government loan rates.
Student loan edge: Government student loans often cost about 6%–9%. SoFi’s average student-loan refinancing rate has been closer to the mid-4% range and can be lower for strong borrowers. When rates fall, the gap between government rates and SoFi’s refinancing rates can widen. More borrowers may refinance to save money. That can lift loan volumes and fee income.
Low-cost funding from deposits
Definition: “Cost of capital” is the price a company pays to get money it can lend out.
SoFi’s advantage: SoFi gathers deposits through its savings and checking accounts. Paying competitive savings rates is still cheaper than many other funding sources. Traditional banks with many branches face higher overhead costs (rent, staff, maintenance). SoFi’s lighter footprint supports competitive rates to customers and a lower company-wide cost base.
Flywheel effect: SoFi’s cross-sell rate is about 35%. That means a customer who starts with savings may later add a mortgage, loan, credit card, or investing account. More products per customer boost lifetime value and retention.
High-quality customer base
Definition: “Credit score” is a number that shows how likely a person is to repay a loan.
SoFi’s customers reportedly average around $136,000 in annual income and hold strong credit scores. Higher-income, higher-credit customers tend to repay on time. This lowers losses and improves profit margins, especially when loan volumes grow.
Crypto services return
Definition: “Collateral” is an asset you pledge to secure a loan. If you do not pay, the lender can take the collateral.
With regulatory changes, SoFi is bringing back crypto trading and is planning advanced features such as borrowing against crypto and using blockchain for cross-border transfers. This can attract tech-forward users and add new revenue streams. It also strengthens cross-selling across SoFi’s ecosystem.
The bank charter advantage
Definition: A “banking license” (bank charter) is government approval to operate as a bank. It allows taking deposits and offering services that non-banks cannot.
SoFi’s bank charter can reduce funding costs and enable services that need special permissions. It also provides a regulatory framework that may help roll out new products, including crypto-related features, with clearer compliance paths than non-bank rivals.
Institutional interest and price behavior
Recent trading data indicates steady institutional participation on many days. Institutions often build positions early. While no outcome is guaranteed, strong buying interest can support trends. From a price-pattern view, stocks breaking to new highs often have higher odds of moving further up than stocks at lows trying to rebound. That does not remove risk, but it frames probability.
Key reasons SoFi could outperform into 2025
Student-loan refinancing tailwind as rates fall: Lower market rates can widen the gap versus government loans and spur refinancing demand.
Strong customers and cross-sell: Higher-income, high-credit users adopt more products and repay reliably.
Crypto’s return with advanced services: Trading, crypto-backed lending, and blockchain transfers can drive engagement and fees.
Bank charter leverage: Lower funding costs, more products, clearer compliance pathways, and a durable edge over non-bank fintechs.
Risk notes in simple terms
Management risk: Even good companies can make poor choices.
Market risk: If rates do not fall as expected or stay higher for longer, loan volumes and margins may be lower.
Competition: Traditional banks and app-first rivals will compete on rates, features, and rewards.
Execution: Adding new products, like advanced crypto services, requires solid risk controls and compliance.
Bottom line
Felix Prehn’s view is that SoFi blends tech speed with bank stability. Falling rates, a strong customer base, the bank charter, and the return of crypto services create multiple growth paths. The company’s recent growth in deposits, customers, revenue, and profit supports this thesis. While investors should always consider risk and position sizing, the setup into 2025 looks favorable based on these drivers.
Learn more about the team and mission behind this analysis at Goat Academy: Felix Prehn Goat Academy.