THE BASIS POINT

The tech disruption & millennial misery circle is complete

SoFi, the finance company that is totally not a bank, just filed government paperwork on its plans to let customers invest in groups of stocks called exchange-traded funds (ETFs) for free for a year.

This is a sweet deal, but it’s not what caught my eye.

What did catch my eye was, of the four ETFs SoFi’s launching, there’s one called SoFi Gig Economy ETF that will invest in “companies that directly facilitate and participate in revenue generation from gig economy businesses.”

You know what this means?

The circle of tech disruption and millennial misery is complete.

SoFi launched by making and refinancing student loans—a hipper, cooler Navient or Nelnet. And as a SoFi student loan customer, I can say they’ve raised the game by giving borrowers one less reason to hate loan servicers.

Now SoFi’s branching into banking. There are no branches of course, because SoFi knows The Youngs don’t even know what that is. But they have a growing suite of bank products so they can be a one-stop shop for finances in the same way there are one-stop shops in housing.

Since SoFi’s richer customers now have a cheap way to invest in the hard Gig work of their Not Rich Yet customers, the circle is complete. And everyone is happy, because we’re all HENRYs in the banks’ eyes, right?

Welcome to the future of finance. Now let’s go get drunk at a SoFi party—they’re actually super fun.

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Reference:

Millennial online lender SoFi to offer zero-fee ETFs (CNBC)

SoFi’s SEC filing for new consumer ETF funds

SoFi Once Offered Avocado Toast For Buying A Home—Yes, Really