Latest news with #onlinebanking
Globe and Mail
4 days ago
- Business
- Globe and Mail
Could Buying SoFi Technologies Stock Today Set You Up for Life?
Without a doubt, SoFi Technologies (NASDAQ: SOFI) has been a volatile stock. The company's stock chart in 2021 looks like a wild roller-coaster ride, and 2022 was a long slope downward from prices in the low $20s to prices in the mid-single-digit range. However, after about 2 1/2 years of trading in that single-digit range, shares have soared by 90% just in the past 12 months to more than $13. Investors who take a closer at this fintech company now will likely come away impressed. But if you buy shares today, could SoFi set you up for life? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Rising in the financial services industry It has been remarkable to watch SoFi's evolution from its launch in 2011 as a business that specialized in offering more affordable student loans to its current form as a comprehensive online bank. Now, SoFi can help its customers with an array of financial needs, from checking and savings accounts to stock investing, insurance, and loans. Its growth has been exceptional. During the five-year period that ended in 2024, SoFi's customer base expanded 10-fold. And in the first three months of this year, it added 800,000 net new customers. This propelled a 20% jump in revenue year over year. Its ability to cross-sell additional products to existing customers as their financial needs evolve should drive durable growth over the long term. Based on its impressive trajectory, the business is doing a fantastic job at filling a market need. That should make investors bullish because it highlights SoFi's ability to take advantage of the weaknesses of banking industry incumbents by offering a tech-forward banking platform that provides a superior user experience. There's reason to be optimistic about SoFi's future, at least if you believe what its leadership team says. Chief Executive Officer Anthony Noto has said publicly that he wants SoFi to become a top 10 financial institution one day. It's not exactly clear what metric he's focused on -- asset base, revenue, market cap, or something else -- but it's obvious that his goal is to aim high. Focus on earnings growth SoFi stock is still far below the all-time high it reached in February 2021. The stock is currently 48% below that peak. However, its momentum has been notable in the past year. I don't believe its current valuation is expensive. The stock trades right now at a forward P/E ratio of about 41. At first glance, you might think this is not a bargain by any means. But in the context of the company's earnings growth trajectory, it looks more appealing. SoFi generated earnings per share (EPS) of $0.39 in 2024, its first full year of being profitable on a GAAP (generally accepted accounting principles) basis. The leadership team is projecting EPS of $0.68 (at the midpoint of its estimates) in 2026. After that, their outlook is that this key metric will grow at a compound annual rate of 20% to 25%. On one hand, it's best to take such forecasts with a grain of salt. Consider, though, that SoFi has exceeded Wall Street's average EPS estimate in each of the past 11 quarters. This could be a sign that management is making a habit of guiding analysts toward setting expectations that it will likely be able to beat. And it's important to remember that SoFi is a fully digital bank. It has no physical branches to deal with. Its lower infrastructure costs should make it easier for it to increase its profits in the years ahead as it scales up further. While I wouldn't go so far as to say this fintech stock could set you up for life, it does look like a smart buying opportunity right now. Should you invest $1,000 in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
5 days ago
- Business
- Yahoo
Better Growth Stock: Block vs. SoFi Technologies
The advent of mobile internet connectivity has turned the banking business into self-serve. Cryptocurrencies' underlying blockchain technology, in the meantime, has been held up as a solution for a range of problems. Investors are underestimating the potential of one of these young businesses while overestimating the upside of the other. 10 stocks we like better than SoFi Technologies › Does your portfolio need a bit more exposure to the fintech space? There are plenty of great options out there, although payment technology platform Block (NYSE: XYZ) and online banking outfit SoFi Technologies (NASDAQ: SOFI) are a couple of investors' favorites right now. Either would likely work well enough for you. If you've only got room for one of these holdings at this time, however, choose SoFi. Here's why. Don't panic if you already happen to own a stake in Block. You're hardly doomed. While shares are still trading down more than 70% from their pandemic-inspired 2022 peak, analysts remain largely bullish, collectively rating the stock as a strong buy while supporting a consensus price target of $66.86 that is roughly 7% above this ticker's present price. Slow and steady long-term revenue and earnings growth are in the cards, even if that progress can run a little hot and cold. SoFi Technologies is still the better bet, though. On the off-chance you're reading this and aren't familiar with it, SoFi is an online bank offering all the services you'd expect from a more traditional brick-and-mortar banking company. Checking and savings accounts, loans, credit cards, investing services, and even insurance and travel planning are in its wheelhouse. Where SoFi Technologies differs is that it's only an online bank -- there are no physical branches to visit. That might initially seem a bit nutty to investors who remember a time when online banking didn't exist at all, simply because the internet itself had not yet been invented. When brick-and-mortar banks added online self-service as an option, it was a game-changing add-on. Now, this digital self-service choice isn't just the norm -- it's the preferred means of handling most banking matters. A 2024 survey commissioned by the American Bankers Association and performed by Morning Consult found that 22% of bank customers in the United States now use their personal computers as their first choice for taking care of their banking business, while a whopping 55% of this crowd prefers a mobile app for handling banking matters. In-branch visits and phone calls, conversely, are only the first choice for 8% and 4% (respectively) of U.S. banks' customers. It also comes as no surprise that older consumers are less likely to use a mobile app or PC to do their banking, while digitally native younger customers are increasingly likely to do so. Connect the dots. Where SoFi Technologies already sits is where the world is going. That's what its results indicate, anyway. Its customer headcount has grown every quarter since the beginning of 2020, from just over 1 million members then to nearly 11 million members as of the end of this year's first quarter. It's expecting more of the same pace of growth this year as well, driving revenue and earnings higher in step with this ongoing expansion, thanks to a greater and more cost-effective scale. SoFi's full-year guidance is for top-line growth of around 25% and a near-doubling of per-share profits. Don't look for this growth to end then, however. An outlook from Precedence Research suggests the global online banking business is set to grow at an average annual pace of 40% through 2034. Although Europe is the biggest and apt to be the fastest-growing market, the North American market, where SoFi operates, isn't far behind by either measure. Just brace for the fact that you may not see big gains right away if you're going to dive in at this time. Shares are already priced near analysts' consensus one-year target of $13.70, and this crowd's collective rating on this ticker is a lukewarm hold. SoFi Technologies should only be viewed here as a long-term prospect. Still, SoFi is arguably a stronger growth investment than Block is at this time for a couple of key reasons. But first things first. You may be more familiar with this outfit than you realize. This is the company formerly known as Square, which, of course, offers card payment acceptance technology to small businesses and sole proprietors that weren't being served by more conventional payment solutions providers. It still manages this business, too, but in 2021, it dove headfirst into the then-red-hot cryptocurrency arena by building a whole new technology around Bitcoin. Later that same year, Square changed its name to Block to better represent the new prioritization of its blockchain-based business. It hasn't been a terrible decision; obviously, these markets are still around and are still producing at least some growth. However, the payment-acceptance space is now both mature and crowded by entrenched powerhouses like PayPal, while technology companies like Alphabet's Google and even IBM are creeping deeper into these same spaces. The barriers to entry into these markets are now quite low, taking a toll on Block's pace of forward progress. To this end, the company is only expected to produce sales growth of about 4% this year, dragging per-share earnings lower with that slowdown. Revenue growth should slightly accelerate next year -- but only slightly -- to a modest pace of about 10%. Analysts don't expect it to ever get much better than that again, either, even though profit margins are likely to continue widening at a measurably faster pace. That's the first reason investors might want to opt for something more promising from the fintech space. As for the second reason to steer clear of Block, while the blockchain hype was once palpable, it's not unfair to say it hasn't exactly lived up to expectations. That's not to say it won't. If and when it happens, Block is ready to serve its targeted sliver of the business. That's mostly by offering a secure digital Bitcoin wallet. As it stands right now, though, neither consumers nor corporations seem as interested in cryptocurrencies or their underlying blockchain technology as much as previously hoped. Their security (or lack thereof) remains a reasonable concern, while blockchain itself is proving to be a complicated and costly solution to problems that don't actually exist. In the meantime, although Bitcoin currently accounts for 40% of Block's revenue, it still only makes up about 3% of the company's gross profits. Perhaps Block hitched its wagon to the wrong star. Never say never, of course. Things could change. There's also an obvious opportunity ahead for Block's well-established Cash App and payment-processing businesses, even if the business is crowded, as the world continues to wean itself from cash and even conventional credit cards in favor of more payments being made directly to and from bank accounts. As it turns out, these direct transfers are often more secure and typically cheaper than card-based payments. It's a shift, however, that still works to SoFi's advantage far more than it does to Block's. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Bitcoin, Block, International Business Machines, and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. Better Growth Stock: Block vs. SoFi Technologies was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
22-05-2025
- Business
- Forbes
16 Strategies For Promoting Digital Banking Services To Customers
getty Financial institutions are facing the ongoing challenge of differentiating their online products and services in a crowded marketplace. Educating current and prospective clients about these offerings is key to building trust, increasing engagement and driving adoption. The right strategy can turn digital tools into powerful value-adds that deepen customer relationships. To help financial institutions stand out and connect more effectively with their audiences, 16 Forbes Finance Council members share their top strategies for promoting and educating users about online banking services. One effective strategy is integrating AI-powered support agents to provide instant, personalized guidance on digital products. These agents can educate users in real time, reduce pressure on staff and deliver consistent experiences, helping institutions stand out not just through their offerings but also with smarter and efficient service. - Tomer Guriel, ezbob Ltd. One effective strategy is to create interactive, easy-to-follow video tutorials and webinars that showcase online banking features. Pair this with personalized support and targeted content. To stand out, highlight unique tools, security features and real-life success stories that build trust and demonstrate real value. - Andre Pennington, Pennington Law It's important to remember your customer at all times and think about what they care most about. For small and mid-size businesses, that's simplifying life. Offering a high-yield checking account helps them earn extra dollars without having to transfer between accounts. That ease can give businesses the freedom to focus on the core mission of their business or allow them to be more present with their family. That's invaluable. - Eyal Lifshitz, Bluevine One key strategy is to employ consistent content generation across digital platforms. Regular blogs, videos and social media updates help break down complex services into easy-to-understand insights. By staying active and providing valuable, clear information, financial service institutions can build trust, keep clients informed and stand out in a crowded market. - Michael Foguth, Foguth Financial Group Consumers are looking to make better financial decisions. They are no longer content with basic information such as "What's my balance?" They are more goal-oriented, asking questions like, "How can I increase my savings and achieve my financial goals, like homeownership or retiring early?" Financial institutions must communicate the benefits of their online banking products and services and not simply that they exist. - Kevin Cohee, OneUnited Bank Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Offer real-time demos and open Q&A sessions to make learning feel more engaging and easy to access. To really stand out, identify what sets your product apart. Consider offering early adopters a special incentive. That will make them more inclined to pick your product over the competition. - Jake Claver, Digital Ascension Group Online banking should evolve from recordkeeping to real partnership. Use data to flag trends, forecast cash flow and guide decisions. Imagine a bank that doesn't just report the past, but helps shape the future. That's how you serve entrepreneurs and stand out in a crowded market. - Patrick Lonergan, Vital Wealth Embed interactive, AI-enabled tutorials that leverage microservices for real-time data analytics, personalized transaction insights and automated compliance checks. Offer unique risk-based budgeting tools and advanced multi-factor security to differentiate. Keep our unified globe thriving, one secure transaction at a time! - Terry Chen, Modulate Leverage digital education that mirrors real-life financial tasks. By demonstrating relevance and ease of use, institutions build trust, drive adoption and differentiate themselves through client-centric engagement rather than relying on feature lists. - Sumeet Grover, UFCU Firms should educate clients on cybersecurity through live training and videos on security features, such as fraud alerts and two-factor authentication. Clear tips on safe password practices and scam awareness can also help. - Dessy Prasad, RIA Innovations Financial institutions stand out by leading with clarity, not complexity. The most effective strategy is executive-led education, where leaders translate tech into value. At my firm, we elevate adoption by showing clients how digital tools drive outcomes, not just convenience. Vision, not features, is what builds lasting trust. - Aurele Gouy, Hackman Capital Partners One effective strategy for financial institutions to educate clients about online banking is through gamified financial literacy programs. This approach transforms complex concepts into engaging experiences, boosting retention and participation. - Tomas Milar, Eqvista Inc. Encourage active users to provide feedback on how they utilize online banking tools—like mobile deposits, account notifications or budgeting features—in their daily lives. These will provide authentic, peer-to-peer education that is more relatable than traditional demonstrations. By placing clients at the center of the narrative, you establish trust, humanize the brand and distinguish yourself. - Neil Anders, Trusted Rate, Inc. One impactful strategy is to leverage personalized, data-driven storytelling. Use client behavior insights to create tailored content that demonstrates real-life value—like faster payments, smarter budgeting and safer transactions. Combine this with interactive demos and AI-driven support to turn education into experience, and experience into loyalty. - Swati Deepak Kumar (Nema), Citigroup The overall strategy should involve a personalized omnichannel campaign. By using data analytics to segment audiences, institutions can tailor content through emails, social media, mobile apps, webinars and in-branch kiosks. To differentiate themselves, institutions should focus on trust, simplicity and user experience. Offering interactive tutorials, AI-driven chat support and financial wellness tips can help. - Pankaj Vasani, Cube Highways InvIT Our strategy is to constantly update our clients through online marketing campaigns regarding current and new options. Also, by offering multilingual support, we build trust and clarity. Our clients have different preferences for depositing funds, and we are always updating our offerings through direct bank transactions, cards, payment service providers and crypto wallets. - David T. Nudelman, Scandinavian Capital Markets The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Daily Mail
15-05-2025
- Business
- Daily Mail
BREAKING NEWS NAB outage: Chaos ensues as thousands of Aussies are locked out of their bank accounts
Thousands of NAB customers have been left scratching their heads after the mobile banking app was impacted by a major tech outage. Customers have been greeted with an apology notice after being left unable to log into online banking on Thursday afternoon. 'Internet banking isn't working at the moment,' the message read. 'We're sorry and are doing everything we can to get it back up and running.' Customers were told phonelines were open but advised call wait times may be longer than usual. Several customers took to social media to question whether they were alone in facing connectivity issues with the app. One NAB customer wrote on X, formerly known as Twitter: 'Why is NAB banking down??' Another replied: 'Thank God I'm not the only one.' '@nab what's going on? No one can log in,' one customer wrote. 'NAB being down and me accidentally transferring my pay to the wrong account has just made ME the idiot to hold up the line at the supermarket omg jail,' someone else tweeted.
The Sun
11-05-2025
- Business
- The Sun
Barclays issues major update on bank closures after shuttering 1,236 locations in last decade
BARCLAYS has issued a major update on its bank branch closure plans after shutting 1,236 sites over the past 10 years. The banking giant has pledged not to announce any additional branch closures in 2025 or 2026. 1 Barclays' boss, CS Venkatakrishnan, made the promise at the bank's annual general meeting on Wednesday. When questioned about future plans, Venkat stated clearly: "We don't have any plans to announce further bank branch closures in 2025 or 2026." While this is good news for now, Barclays hasn't ruled out the possibility of closures in the future. Chairman Nigel Higgins said that the bank hadn't made any decisions beyond the 2026 timeframe, saying: "We want to see how the current branch strategy plays out." Like other major banks, Barclays has been shutting branches as more customers move to online banking. However, this has raised concerns that older and more vulnerable customers could be left behind. Over the past ten years, more than 6,300 bank branches have closed across the country, according to consumer group Which?. Barclays has been responsible for the largest number of these closures, shutting 1,236 branches. Its recent promise to halt further closures follows similar moves by HSBC and Nationwide Building Society. HSBC said last August that it would not close any more branches until at least 2026. This commitment, which extends a previous pledge to avoid new closures in 2024, aims to maintain its 327-branch network and invest over £50 million in improving existing branch locations. Meanwhile, Nationwide has vowed to keep all of its branches open until at least 2028, extending its previous commitment from 2026. What's happening at other banks? Customers are increasingly turning to online banking to manage their finances while banks and building societies look for ways to cut costs. Since 2022, UK bank branches have seen widespread closures, with Barclays leading the way with 397, followed by Lloyds Bank (308), NatWest (256), and Halifax (203), according to ATM operator LINK. Looking ahead from May 2025, Santander has the most planned closures (95), significantly more than Halifax (60) Lloyds Bank (59), NatWest (41) and Bank of Scotland (25). What to do if your local bank is set to close There are still a number of ways people can access basic banking services without having to venture to another town with a branch. You can use one of the Post Office's 11,684 branches to perform basic banking tasks — but not to open new bank accounts or take personal loans and mortgages. You can find your nearest Post Office branch by visiting Meanwhile, many banks offer a mobile banking service - where they bring a bus to your area offering services you can usually get at a physical branch. Other banks use buildings such as village halls or libraries to offer mobile banking services. It's worth contacting your bank to see what mobile services they have available, and when they might next be in your area. New super ATMs are being rolled out across the UK where branch closures have left residents unable to access essential banking services. These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash. Bank of Scotland, Barclays, Halifax, Lloyds, NatWest, Royal Bank of Scotland and Ulster Bank are already signed up to allow deposits, at the super ATMs. Banking hubs are also being opened across the UK with 250 set to be available by the end of 2025. These sites typically feature a counter service operated by the Post Office as standard, enabling customers to conduct routine banking transactions conveniently. Each hub also has a private area where customers can consult with staff representing their banks for more complex matters. What services do banking hubs offer? BANKING hubs offer a range of services to bridge the gap left by the closure of local branches. Operated by the Post Office, these hubs allow customers to perform routine transactions such as deposits, withdrawals, and balance enquiries. Each hub also features private booths where customers can discuss more complex banking matters with staff from their respective banks. Staff from different banks are available on a rotational basis, ensuring that customers have access to a wide range of banking services throughout the week. Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.
