SoFi obtains a charter to become a national bank

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The Federal Reserve and the Office of the Comptroller of the Currency (OCC) have accepted SoFi’s applications to become a bank holding company. The fintech company will form SoFi Bank, National Association, pending its acquisition of Golden Pacific Bancorp next month.

  • SoFi has received approval from federal regulators to become a national bank.
  • The fintech company started out as a student loan refinance company, but has expanded into other lending and banking products in recent years.
  • SoFi believes the charter will help the company grow its products and services.

SoFi reaches milestone as a financial services company

SoFi Technologies will soon be the parent company of a national bank, SoFi Bank, NA, pending its acquisition of Golden Pacific Bancorp, which is expected to close in March. The company announced its regulatory approval on Tuesday.

Social Finance started as a student loan refinance company in 2011, but has expanded its products and services to include an investment platform, bank accounts, personal and mortgage loans, credit card and more.

As a national bank, SoFi will be able to continue to expand its list of products for consumers, CEO Anthony Noto said. “This incredible milestone elevates our ability to help even more people get their money’s worth and achieve their ambitions,” he added in a press release. “With a national banking charter, not only will we be able to lend at even more competitive interest rates and offer our members high-yield interest for checking and savings, it will also improve our financial products and services to ensure they effectively meet the needs of our members, business partners and communities across the country.

The process towards the milestone began in March 2021, when SoFi entered into an agreement to acquire Golden Pacific. The fintech company will continue to support the bank’s community activities, while spending $750 million to pursue its national plan as a digital bank.

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