Shares in SoFi surged 8% on Tuesday after the personal-finance giant shared news of “durable growth and profitability.” Revenue rose from $231M to $362M, while analysts had expected $344M.

Why should we care?
As SoFi CEO Anthony Noto told analysts, "There couldn't be a better time to have become a bank." The company secured a banking license through the acquisition of a small California-based bank in the beginning of the year, which has let SoFi attract billions in deposits and charge high rates on loans thereafter. “To put this in perspective, it took three years to accumulate our first $1 billion of deposits and just three months to grow another $1.6 billion,” Noto said. “In addition, approximately 80% of our deposits are from direct-deposit members, demonstrating the quality and stickiness of these deposits.” The company’s CFO, Christopher Lapointe, seemed to do a victory lap in his statement, perhaps subtly suggesting that investors were wrong about the company’s acquisition and business strategy. SoFi acquired banking-software maker Technisys SA in February, which caused the company’s stock to dip 8% after the announcement. Shareholders were concerned that SoFi was departing too drastically from its traditional wheelhouse of student debt refinancing, becoming a one-stop shop for financial products and services. But, as demand for student loans remains tepid due to the ongoing payment moratorium on federal student loans, SoFi has managed to diversify its revenue streams and find a platform for seemingly sustainable growth. “Throughout the last 12 months, we have demonstrated the benefit of having a diversified set of revenue streams and a keen focus on continuing to underwrite high-quality credit,” Lapointe said. “We expect those benefits to persist going forward even in light of the existing macro backdrop.” Other fintechs struggling with losses or volatility may follow in SoFi’s footsteps, eyeing a banking license as a path to profitability.