SoFi Technologies Obtains Regulatory Approval to Become a National Bank

The digital personal finance company, SoFi Technologies announced that it has received approval from the regulatory authorities to operate as a national bank today. The details shared by the Nasdaq-listed firm highlighted the approval from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve.

SoFi has received approval through the company's proposed acquisition of Golden Pacific Bancorp. The mentioned acquisition is expected to be completed by February 2022, subject to the completion or waiver of the remaining closing conditions. Following the approval announcement, the stock price of the firm jumped by almost 15%.

In an effort to obtain a national bank charter, SoFi announced a definitive agreement last year by its subsidiary Social Finance, Inc. to acquire Golden Pacific Bancorp. The digital personal finance firm is planning to accelerate the expansion of its operations in the future.

“This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said Anthony Noto, the CEO of SoFi. “With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with a high-yielding interest in checking and savings, but it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners and communities across the country while continuing to uphold a high bar of regulatory standards and compliance.”

Acquisition

SoFi has witnessed a jump in demand for its products related to borrowing, saving, spending and investing during the last 12 months. According to the company, the acquisition will boost its products and services. After GBP’s acquisition, SoFi Technologies will become the parent company of SoFi Bank, National Association.

“I’m incredibly proud of our team and excited about the opportunities ahead to help even more people achieve financial independence,” Noto added.