SoFi Technologies (NASDAQ:SOFI) is a relatively small neo-banking firm right now. However, the data shows that SoFi Technologies is growing by leaps and bounds. SOFI stock has the potential to make a 5x move in five years’ time if the company continues to expand and if the U.S. Federal Reserve finally stops raising interest rates.

Let’s not mince words here. 2022 has been a tough year to operate most types of businesses, especially financial businesses. Lending activity hasn’t been particularly robust this year, and central bank policy has undoubtedly been a contributing factor to this.

Yet, as we’ll see, SoFi Technologies has demonstrated success in many ways. Just imagine how much progress the company could make in a more accommodative monetary environment. All it would take is a “pivot” or perhaps even just a “pause,” and the next thing you know, there could be a massive windfall for SoFi’s shareholders.

Fed’s Tightening Has Pummeled SOFI Stock

I would never claim that the Fed’s shift from dovish to hawkish is solely responsible for SOFI stock’s decline in 2022. However, it’s certainly a major factor.

We’re talking about a precipitous decline here, with the SoFi Technologies share price falling from $15 in January to $5 recently. There’s a silver lining here, though, since usually a cheap stock can more easily make a 5x move than a more expensive stock.

That’s not the only silver lining, though. There’s strong turnaround potential since SoFi Technologies’ business model depends heavily on lending activity. The Fed crimped lending activity this year by raising the federal funds rate multiple times.

Yet, people shouldn’t assume that the Federal Reserve will continue to hike interest rates forever. The prevailing consensus is that the Fed’s “terminal” interest rate will be 4.45%. So, there should be a light at the end of the tunnel, as lending activity will eventually pick up.

SoFi Technologies Has Thrived Despite Aggressive Fed Policy

Even with the headwind of tighter monetary policy, SoFi Technologies has fared surprisingly well. The current share price doesn’t seem to reflect how well the company has done, in certain respects.

First of all, SoFi Technologies has expanded its product and service offerings. For instance, the company can help customers obtain personal cyber-protection and is launching new exchange-traded funds (ETFs) for open-minded investors.

Also, SoFi has demonstrated impressive user-base growth. The platform’s new-user count has increased by 69% or more, on a year-over-year basis, during every quarter since 2020’s third quarter.

Furthermore, SoFi’s quarterly adjusted net revenue has increased sequentially in every quarter since 2021’s second quarter. Amazingly, SoFi Technologies’ second-quarter 2022 adjusted net revenue grew 50% year-over-year to $356 million. This occurred even though the Fed was ramping up its monetary-policy tightening.

So, Where Will SOFI Stock Be in Five Years?

While I have no crystal ball, I’ve laid out the data points that show SoFi Technologies’ growth trajectory. Moreover, the Federal Reserve won’t continue to crimp lending activity forever.

Thus, there’s no crystal ball needed to project robust continued growth for SoFi Technologies, especially when the Fed finally flips back to a dovish stance. With all of that in mind, investors should anticipate SOFI stock to reach at least $25 in five years, and even achieve triple digits eventually.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.