Instead of buying Bank of America, purchase this magnificent bank stock.

Bank of America commands attention as one of the largest financial institutions globally, boasting a market capitalization nearing $300 billion and total assets exceeding $3.3 trillion.

Notably, it holds a prominent position among Warren Buffett-led Berkshire Hathaway's top holdings. While these credentials may spark interest in Bank of America's stock, there's a compelling case to divert attention to another standout in the banking sector.

Enter SoFi Technologies (NASDAQ: SOFI), a financial technology company that has emerged as a digital banking powerhouse through innovative strategies. Initially focused on student debt refinancing, SoFi has rapidly expanded its offerings to encompass a comprehensive suite of financial services, including checking and savings accounts, brokerage services, credit and debit cards, and various loan products.

The company's growth trajectory is impressive, with its customer base skyrocketing from fewer than 1 million to 7.5 million in just four years. This surge has translated into staggering revenue growth, climbing by 375% between 2019 and 2023. SoFi's ability to cater to the needs of a higher-income, digitally savvy clientele underscores its efficacy in capturing market share and driving top-line expansion.

Even amidst a higher-rate environment, which typically poses challenges for banks, SoFi has sustained robust growth, evidenced by a 35% revenue increase last year. In contrast, Bank of America saw a 2% revenue decline in the first quarter of this year. The divergence in performance highlights SoFi's agility and resilience in navigating evolving market dynamics.

Looking ahead, SoFi's growth prospects remain promising, with management anticipating annual revenue growth of 20% to 25% over the next three years. The company's potential for international expansion further amplifies its growth runway, signaling sustained momentum in the foreseeable future.

While Bank of America boasts a long-standing track record of profitability and shareholder returns, SoFi's trajectory is characterized by aggressive investment in growth initiatives, resulting in intermittent profitability. However, the tide is turning for SoFi, as evidenced by its first-ever quarterly profit in late 2023. Management's optimistic outlook, forecasting substantial earnings per share (EPS) growth by 2026 and beyond, underscores the company's evolving profitability profile.

In assessing investment potential, SoFi emerges as a compelling choice for investors seeking market-beating returns over the long term. Its combination of robust revenue growth and accelerating earnings paints a promising picture for future performance. While it may carry higher risk, initiating a smaller position in one's portfolio could offer exposure to SoFi's upside potential while managing risk effectively.