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Published January 21, 2022 12:23 PM ESTThe Federal Reserve and the Office of the Comptroller of the Currency (OCC) have accepted SoFi's applications to become a bank holding company. The financial technology company will form SoFi Bank, National Association, pending its acquisition of Golden Pacific Bancorp next month.
SoFi Technologies will soon be the parent company of a national bank, SoFi Bank, NA, pending its acquisition of Golden Pacific Bancorp, which is anticipated 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, banking accounts, personal and mortgage loans, a credit card and more.
As a national bank, SoFi will be able to continue to expand its list of products for consumers, says CEO Anthony Noto. "This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” he added in a press release. “With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with 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.”
The process toward the milestone began in March 2021, when SoFi closed a deal to acquire Golden Pacific. The fintech company will continue to support the bank's community business, while spending $750 million to pursue its national plan as a digital bank.