SoFi realises ambition to become national bank with US regulatory approval – FinTech Futures

Online lending platform SoFi has received regulatory approval in the US to become a national bank.

GPB will move under the umbrella of the new “SoFi Bank”

As part of the personal finance firm’s goal of gaining a US banking charter, SoFi announced the acquisition of California’s Golden Pacific Bancorp, and its subsidiary Golden Pacific Bank (GPB), for $22.3 million in March.

The firm had filed an application for its own licence with the Office of the Comptroller of the Currency (OCC) in July 2020.

Though the proposed acquisition, the United States’ OCC and the Federal Reserve have now approved SoFi’s application to become a bank holding company.

SoFi CEO Anthony Noto says the approval “elevates our ability to help even more people get their money right and realise their ambitions”.

Noto adds the partnership with Golden Pacific Bank allowed the firm “to both accelerate our pursuit to establish a national bank subsidiary, as well as begin to expand our offerings in SoFi’s financial products and banking API Galileo’s technology platform to serve local communities”.

SoFi will put in $750 million of capital and pursue its nationwide digital business plan while maintaining GPB’s three current physical branches.

The acquisition is expected to close in February, subject to customary closing conditions. Once completed, SoFi will operate GPB as SoFi Bank, National Association.

Noto says the national bank charter will allow SoFi to lend at even more competitive interest rates, provide high-yielding interest rates and enhance its products and services.

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