Galileo Transforms SoFi Into the Backbone of Embedded Finance

Galileo, the B2B financial services arm of SoFi Technologies, Inc. SOFI, is emerging as a key engine of growth in the rapidly expanding embedded finance market. By offering seamless payment and lending integrations, Galileo enables financial and non-financial firms to embed banking capabilities directly into their platforms. This strengthens SoFi’s competitive edge and opens up new revenue streams. As embedded finance is expected to witness a CAGR of 16.8% through 2029, Galileo’s ability to attract high-profile clients and scale its offerings positions SoFi as a serious contender for long-term leadership.

SoFi is leveraging Galileo to diversify beyond its core consumer lending business, tapping into the broader digital banking ecosystem. The platform’s adoption by other financial firms not only validates its technological edge but also enhances its network effects, improving monetization potential. As the digital banking platform market is poised for substantial growth, Galileo’s early momentum provides SoFi with a significant competitive edge. As more companies, including smaller traditional banks, seek turnkey digital solutions rather than build costly infrastructure from scratch, Galileo becomes an even more attractive proposition. Ultimately, Galileo is transforming SoFi from a digital bank into a foundational layer of the future financial system.

Other Stocks to Watch in Fintech

Block XYZ, Robinhood (HOOD) and PayPal PYPL are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo’s capabilities. Block, Robinhood, and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models.

SOFI’s Price Performance, Valuation and Estimates

The stock has declined 8.5% year to date compared with the industry’s 6% decline.

From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 37.2, well above the industry’s 17.98. It carries a Value Score of F.

The Zacks Consensus Estimate for SOFI’s 2025 earnings has been on the rise over the past 60 days.

SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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