American digital personal finance company SoFi Technologies (SoFi) has received regulatory clearance to become a bank.
The San Francisco-based company secured approval from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve to become a bank holding company.
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SoFi intends to become a bank holding company through the proposed acquisition of Golden Pacific Bancorp (GPB) and operate banking subsidiary as SoFi Bank, National Association.
The acquisition of GPB is expected to complete in February after fulfilling the remaining customary closing conditions.
SoFi CEO Anthony Noto said: “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, 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.”
SoFi will invest $750m and pursue its national, digital business plan. The digital bank will also maintain GPB’s community bank business and physical footprint of three branches.
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By GlobalDataLast year, SoFi went public by combining its operations with special purpose acquisition company (SPAC) Social Capital Hedosophia Holdings. At the time of announcement, the deal valued the firm at around $8.6bn.
