SoFi obtains authorization to become a bank

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Online lender SoFi Technologies has received US regulator approval to become a bank holding company.

The Office of the Comptroller of the Currency and the Federal Reserve have approved SoFi’s bids to become a bank through its proposed acquisition of Golden Pacific Bancorp.

SoFi agreed to buy the California community bank for $22.3 million last year specifically to help it secure a banking charter. This acquisition is now expected to be finalized in February.

SoFi started life as a student loan finance company, but in recent years it has grown aggressively, recently launching a credit card. It wants the banking charter to allow it to take deposits and make loans that use its members’ deposits.

The company says it will bring in $750 million in capital and continue its national digital business plan while maintaining Golden Pacific’s community banking operations and footprint, including three physical branches.

Anthony Noto, CEO of SoFi, said, “With a national banking charter, not only will we be able to lend at even more competitive interest rates and provide our members with high-yield interest on checks and savings, but it will also improve our financial situation. products and services to ensure they effectively meet the needs of our members, business partners and communities across the country, while continuing to maintain a high level of regulatory standards and compliance. »

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