SAN FRANCISCO–Social Financial, Inc., the peer-to-peer lending giant better known as SoFI that is among the largest and most successful of the fintechs, said the Office of the Comptroller of the Currency has granted it a U.S. banking charter.
The online lending platform acquired Golden Pacific Bank as a means of getting a full-fledged banking license, according to OCC. While the entity will have a national reach and SoFi’s well-established digital lending platform, the OCC said the new license does not cover crypto transactions.
“This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said CEO Anthony Noto in a statement posted on the company’s website.
As CUToday.info reported earlier, the company announced in March 2021 it had signed a definitive agreement to acquire the Sacramento, Calif.-based community bank, which at that time had approximately $150 million in assets. SoFi paid $2.55 in cash for each share of GPB or approximately $22.3 million in aggregate to acquire GPB to advance SoFi’s effort to obtain a national bank charter.
What’s in the Works
At the time it announced the acquisition, SoFi said it planned to contribute $750 million in capital and pursue its national, digital business plan while maintaining GPB’s community bank business and footprint, including GPB’s current three physical branches.
A national bank charter will allow SoFi to accept deposits and make loans that use SoFi’s member deposits versus the higher cost of funding for its loan offerings as a non-bank, creating greater efficiency, and enabling the company to offer more choices and compelling value to its customers, the company said.