William Blair starts SoFi, Affirm with Outperform ratings

William Blair analyst Andrew Jeffrey initiated coverage of both SoFi Technologies (SOFI) and Affirm (AFRM) with Outperform ratings. The firm believes alternatives to traditional consumer finance and bank cards will gain momentum as younger demographics seek better, more transparent financial experiences. It will be difficult for traditional banks, cards and consumer finance solutions to keep up with the desire of younger consumers for things such as instant credit decisions, creative lending products and flexible payment options, the analyst tells investors in a research note. Blair views SoFi as a “leading” digital bank providing personal, student, mortgage, and credit card loans to prime customers. It also believes Affirm is the best positioned buy now, pay later provider in what is a large and growing industry.