SoFi Technologies (NASDAQ: SOFI) is undoubtedly an up-and-coming financial services provider. Its all-digital solutions and seamless user experience are catching on with customers.

But the shares have been wildly disappointing. They now trade more than 70% below their peak. They have tanked about 30% this year alone, which is troubling, considering the 17% rise of the Nasdaq Composite index (as of Aug. 15).

You might be considering buying this beaten-down fintech stock right now in the hopes that a turnaround is in the cards. But before you add SoFi to the portfolio, it's critical you take the time to understand one very important risk factor.

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Source Fool.com