SoFi Technologies Inc. (NASDAQ: SOFI) saw its stock surge 6.19% in pre-market trading on Tuesday, following the announcement of a groundbreaking new product from its technology subsidiary, Galileo Financial Technologies. The company unveiled Galileo Deposit Sweep, a solution designed to maximize interest earnings and extend FDIC insurance coverage for fintech customers.

The new product enables fintech companies to partner with a network of participating banks and a deposit sweep provider, offering their customers the opportunity to optimize returns while maintaining liquidity. Key benefits of Galileo Deposit Sweep include operational efficiency, automated fund optimization, extended FDIC coverage, and scalable flexibility. This innovation could potentially give SoFi a significant competitive edge in the fintech space.

Investors appear to be reacting positively to the potential impact of this new offering on SoFi's revenue streams and market position. The Galileo Deposit Sweep product not only enhances SoFi's technology platform capabilities but also demonstrates the company's commitment to innovation in financial services. As fintech companies increasingly seek ways to offer better returns and enhanced security to their customers, SoFi's new product positions the company to capitalize on this growing demand, potentially driving future growth and profitability.