It's been a rough ride for shareholders of SoFi Technologies (NASDAQ: SOFI). After a drop of 35% this year (as of July 3), the stock currently trades 75% below its peak. But interested investors can now scoop up shares at a price-to-sales ratio of 2.9, well below their historical average.

Before you buy this fintech stock, though, it's critical to take the time to understand one important risk factor.

Founded in 2011, SoFi originally became known as a digital bank that offered student loan refinancing solutions. However, these days, the business provides numerous other financial services, including checking and savings accounts, a credit card, and investment services. But at its core, SoFi is a lender, and a new type of loan product has become its most important offering.

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Source Fool.com