Better Growth Stock: Nu Holdings vs. SoFi Technologies

Investing at the intersection of financial services and technology, known as fintech, can be an exciting way to boost your portfolio's return prospects. There are two thriving businesses to consider.

Nu Holdings (NYSE: NU), whose shares have surged 284% in the past three years (as of Feb. 2), is a Latin American banking powerhouse. SoFi Technologies (NASDAQ: SOFI), whose shares are up 204% in the past three years, is finding tremendous success here in the U.S.

Between these two growth stocks, which is the better one to buy right now?

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Serving a huge unbanked and underbanked population

Nu has a strong presence in its home country of Brazil, with 110 million customers in Latin America's most populated nation. The company is also finding success in Mexico and Colombia. The fact that Latin America is a developing economy with a large group of unbanked and underbanked people means that Nu still has a large runway for growth.

And its growth so far has been impressive. Revenue climbed 42% year over year in the third quarter, with net income up 41%. Profits have soared due to what looks like a very scalable business model. Nu has no bank branches, eliminating an operating expense that helps boost the bottom line.

The company has proven discipline when it comes to risk management, which is even more critical in emerging economies. And the huge gap Nu has built between the revenue it generates from customers and the cost to serve them will keep supporting robust earnings.

Ongoing innovation is a priority for this management team

SoFi is no slouch when it comes to financial performance. Its adjusted net revenue surged 38% in 2025. This was driven by strong gains in both fee-based revenue and interest income. And after adding 1 million net new customers in Q4, the company now has a budding membership base of 13.7 million.

Adjusted net income increased by an impressive 112% last year. Like Nu, SoFi is an all-digital platform, which gives it a scalable business model as well. Management expects adjusted net income to total $825 million in 2026, equating to a notable 72% year-over-year gain.

Besides providing users with an exceptional app experience that makes managing finances a seamless task, SoFi's leadership team is constantly emphasizing product innovation. For instance, cryptocurrency trading, blockchain-enabled cross-border payments, and a stablecoin were all introduced in the back half of last year. It's all about finding new ways to serve customers, a wonderful quality that supports ongoing success.

Why can't you own both?

It's clear that both of these businesses are flourishing. And they both operate in different markets, so there is no overlap in terms of customer base. Therefore, it might be a smart move to consider owning both companies. Their stocks have big potential over the next five years.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.