SoFi Or Discover: Which Digital Bank To Buy In 2023?

Jan. 15, 2023 9:14 PM ETDiscover Financial Services (DFS), SOFILC55 Comments
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IP Banking Research


  • DFS is an established consumer lending company that is predominantly digital these days.
  • SOFI positions itself as a super-app and one-stop shop for banking.
  • In reality, both firms are predominantly consumer lenders.
  • SOFI also houses an interesting call option on the potential "AWS for Finance".
  • Which digital bank should you own and why?
SoFi Technologies Acquires Technisys SA For $1.1 Billion

Justin Sullivan

The grey line between FinTechs and legacy digital banks has been blurring in the last 18 years. The likes of SoFi Technologies (NASDAQ:SOFI) and LendingClub (LC) obtained their banking charter in the last 18 months and have

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Independent banking research focuses on financials, deep value, special situations, and financial arbitrage. Agnostic and apolitical approach for scouring the earth for durable and uncorrelated cashflows that work well in both inflationary and deflationary settings.See my tipranks profile below: benefit from independent insights and quality analysis from a banking insider - subscribe as a "real-time" follower above.

Disclosure: I/we have a beneficial long position in the shares of LC, SOFI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I may initiate a position in DFS in the next 72 hours.

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