SoFi Gets Regulatory Clearance for Bank Charter. The Stock Is Surging
Industry News
In premarket trading on Wednesday, SoFi Technologies stock soared after the financial technology firm gained regulatory approval to become a bank holding company.
Following its intentions to purchase Golden Pacific Bancorp, SoFi gained permission from the Office of the Comptroller of the Currency and the Federal Reserve. The deal is expected to finalize in February, according to SoFi. Last year, the business stated that it had reached a deal to buy Golden Pacific Bancorp and its Golden Pacific Bank subsidiary.
In premarket trading on Wednesday, the stock was up 19.2 percent to $14.38.
“This great milestone strengthens our potential to assist even more individuals in managing their money and achieving their goals,” SoFi CEO Anthony Noto said. “With a national bank charter, we will not only be able to lend at even lower interest rates and offer our members high-yielding checking and savings accounts, but we will also be able to expand our financial products and services.”
SoFi began as a student loan refinancing company but has now evolved to include various additional financial services. The business became public on June 1 after merging with Chamath Palihapitiya’s special purpose acquisition company, previously known as Social Capital Hedosophia Holdings V.
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