SoFi and Nu Topple JPM as Analysts Predict Big Bank Growth

Despite being the largest bank in the U.S., JPMorgan Chase is not expected to be the top-performing big bank stock over the next two years, according to analysts. Instead, SoFi Technologies and Nu Holdings are seen as potential leaders in growth.

SoFi has been growing at a rate comparable to tech startups, thanks to its combination of fintech features and digital platform. The company added 1.1 million new customers in the second quarter, a 35% year-over-year increase, and 2.2 million new products, with its strategy of bringing customers into the ecosystem and getting them to adopt more products working effectively.

Nu Holdings is also experiencing rapid growth, having onboarded over 60% of Brazil's adult population to its platform in the past 13 years. The company has expanded to Mexico and Colombia, and recently received approval for a full bank charter in Mexico, making it the largest digital bank in the country.

Both SoFi and Nu have seen significant revenue increases, with adjusted net revenue rising 40% year over year at SoFi and 39% year over year at Nu. As they continue to expand their services and enter new markets, analysts expect these companies to remain among the top performers in the industry.