SoFi stock surges on bank approval

SoFi CEO Anthony Noto is a former Goldman Sachs partner and the NFL's CFO

Fintech company SoFi is graduating after winning approval to become a bank. 

The stock soared by double digits Wednesday, as investors assess its growth potential. 

Ticker Security Last Change Change %
SOFI SOFI TECHNOLOGIES 6.72 -0.55 -7.57%

"With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with high-yielding interest in checking and savings, it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners, and communities across the country, while continuing to uphold a high bar of regulatory standards and compliance" said CEO Anthony Noto following the decision by the Federal Reserve and the Comptroller of the Currency. 

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Prior to SoFi, Noto was a partner at Goldman Sachs and chief financial officer for the NFL. 

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Last year, SoFi acquired Golden Pacific Bankcorp and Golden Pacific Bank, setting the stage to become a bank. 

SoFi has been growing with nearly 3 million members as of its third quarter, representing an annual growth of 96%. Lending revenue in the quarter also hit a new high, according to the company. 

Smaller finance companies are stepping up competition for the big banks. 

Ticker Security Last Change Change %
WFC WELLS FARGO & CO. 43.33 -0.49 -1.12%
JPM JPMORGAN CHASE & CO. 126.36 +1.78 +1.43%
BAC BANK OF AMERICA CORP. 35.63 -0.20 -0.56%

Investors can also expect more visibility for the brand. Super Bowl LVI will be played at SoFi Stadium in Los Angeles next month. 

Rosenblatt Securities raised its price target on the stock to $30 per share, while Wedbush Securities started coverage of the company with an "outperform" rating. 

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Shares have lost over 46% during the last 12 months.