Betterment vs SoFi
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
SoFi bundles a whole bank around investing; Betterment is a focused, profitable pure-play robo-advisor.
At a glance
| Metric | Betterment | SoFi |
|---|---|---|
| Revenue | ~$350M (2025 est.) | ~$1.0B (Q4 2025 adjusted net revenue) |
| Profit | Profitable (EBITDA positive) | $173.5M (Q4 2025 GAAP net income) |
| Active users | 1,000,000+ customers | 13.65M members |
| Employees | ~500 | ~4,500 |
| Founded | 2008 | 2011 |
| HQ | New York, NY | San Francisco, USA |
LLitmus Framework Score
Overall: Betterment 89 · SoFi 85
Customer Segment
92
87
Value Proposition
95
88
Marketing Channel
88
82
Engagement
84
85
Income Source
90
86
Asset Validation
93
89
Core Operations
87
84
Strategic Alliance
85
80
Expense Validation
89
83
Betterment leads 8 modules, SoFi leads 1. Overall edge: Betterment.
Head to head
| Dimension | Betterment | SoFi |
|---|---|---|
| Focus | Automated wealth management | Full-spectrum bank + investing |
| Robo fee | 0.25%-0.40% | Low-cost automated investing |
| Tax-loss harvesting | Pioneered, automated | Less developed |
| Model | AUM fees + 401(k) + cash | Lending + financial services + tech platform |
FAQ
Is Betterment or SoFi a better business?
SoFi bundles a whole bank around investing; Betterment is a focused, profitable pure-play robo-advisor. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Betterment and SoFi's business model?
Betterment operates in Fintech (The smart way to invest and save), while SoFi is Fintech (Get your money right). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Betterment or SoFi?
Betterment: Profitable (EBITDA positive). SoFi: $173.5M (Q4 2025 GAAP net income).