This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. SoFi, a digital personal finance company, got preliminary approval for a bank charter last October. SoFi also recently acquired the tiny Golden Pacific Bancorp, which will accelerate its goal of achieving a bank charter. They want to be a bank, they want to disrupt the traditional banking industry. We recently learned that fintech start-up SoFi, which is set to go public through a special purpose acquisition company (SPAC) merger with Social Capital Hedosophia Holdings V (NYSE:IPOE), is acquiring Golden Pacific Bancorp. SoFi Money - $50 ($500 funding). Matt Frankel: SoFi bought a bank. “That means it should be seeking to obtain a national bank charter soon.” ... Of course, being regulated like a bank will mean that the growth of SoFi may be somewhat limited. 21 of 1973. To help make sense of the ever-growing list of options, GOBankingRates put together a list of the top 100 banks for 2021. So to really answer that question, the bank itself is not a material acquisition, it's a tiny bank. SoFi received preliminary, conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) for a national bank charter in October 2020. We feature the best list of Best Bank Bonuses for Personal, Savings, and Business accounts.. Below are the best promotions from the biggest banks such as Chase, Bank of America, Wells Fargo, Citibank, TD Bank, Capital One, HSBC, Huntington, US Bank, KeyBank, PNC Bank, Regions Bank, SunTrust Bank, and many others. This really gives them an established banking presence. It just gives them a whole lot more control over the process, which could be a real big competitive advantage. Now, this is a tiny bank with just three branches, but it's a far more significant acquisition than it sounds. In this Fool Live video clip, recorded on March 29, Fool.com contributor Matt Frankel, CFP, and Industry Focus host Jason Moser discuss why the move into physical banking is such a big deal. What it represents is. We’re motley! On the conference call announcing the SPAC acquisition, SoFi’s CFO Chris Lapointe commented that the company is interested in obtaining a bank charter … This is like a local bank. Other accomplishments noted in the SoFi IPO press release are… Six consecutive quarters of year-over-year member growth; Preliminary, conditional approval from U.S. Office of the Comptroller of the Currency for a national bank charter (October 2020), which would lead to lower cost of funds to support company growth As far as SoFi's fundamentals are concerned, there are positive catalysts that don’t seem to be priced in by the market. Select 'Manage settings' to manage your choices. By acquiring Golden Pacific, the company gets a fast track into that process. I think it's got like three branches in Sacramento, if I'm quoting that correctly. The debt was ~$1.6 trillion in 2019 which was ~7.5% of 2019 GDP. IPOE SPAC, SoFi, has recently bought a local community bank, thoughts on its expansion, long-term growth, potential and upcoming IPO. Matt Frankel: SoFi bought a bank. That also doesn't give them control over their interest rates. Charter Bank (WA) – Credit Cards Charter Bank- Bank Charter National Bank Charter Oak FCU Charter One – Credit Cards Charter Private Bank Charter West Chartway FCU Chase Chase – UCARD Center Chase Amazon Visa Chase Canada Online Chase Cards (formerly FirstUSA) Chase J.P.Morgan Commercial Card Estimated monthly payments shown include principal, interest and (if applicable) any required mortgage insurance. ... -based community bank Golden Pacific Bancorp as the key strategic step towards the company obtaining a national bank charter… Returns as of 05/16/2021. DCU - $20 (5 transactions or direct deposit). The deal gives SoFi a banking license as it plans to go public. Among Affirm and IPOE (SoFi), which is a better fintech stock? Find out more about how we use your information in our Privacy Policy and Cookie Policy and change your choices at any time by visiting Your Privacy Controls. We are customizing your profile We are customizing your profile. I don't even know if they're going to make any more branches, but this just really accelerates their rollout of being their own bank. CEO Anthony Noto, who we've just talked about, he said, if it was up to us, we would pay the highest interest rate in the market. SoFi, a company on track for nearly $1 billion in revenue for its fiscal 2021, was not spared from this collapse with its stock price declining by 42% from a 52-week high of $28.26. : 1 Loans usually must be repaid, in contrast to other forms of financial aid such as scholarships, which never have to be repaid, and grants, which rarely have to be repaid. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. In the old days, most people would simply do their banking at the neighborhood bank. JPMorgan Chase Bank, N.A., doing business as Chase Bank or often as Chase, is an American national bank headquartered in Manhattan, New York City, that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase.The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000. It's not material to the company's results, but it gives them that physical presence that they could use in their other operations. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Radius Bank - $50 ($500 funding). Social Financial Inc., also known as SoFi, announced earlier this month that it plans to purchase a small community lender in order to speed up the process of getting a bank charter. But they figured it will be quicker to acquire one that already existed. It gives them a physical banking infrastructure, because they've got approved for a bank charter. I mean, this would be like Amazon (NASDAQ:AMZN) buying the hardware store on Main Street. To do that, you need some of banking infrastructure. I … BECU - $100 (debit card). Information about your account, device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. THE NATIONAL EXAMINATIONS COUNCIL OF TANZANIA (NECTA) is Government Institution which was established by the Parliamentary Act No. Because until now, SoFi hasn't been a bank and they rely on a middleman, a third-party bank, to actually make their loans, and actually take their deposits. SoFi got its charter through the M&A route after trying two slower paths: a 2017 attempt to get an industrial banking license in Utah—which it pulled—and a preliminary approval for a national charter that it … Credit Union Deals - Nationwide. Cumulative Growth of a $10,000 Investment in Stock Advisor, Here's Why SoFi's Latest Move Is So Important @themotleyfool #stocks $IPOE $AMZN, SoFi Moving Forward With Pre-IPO and SPAC Offering Plans, SoFi Moving Forward With SPAC Merger Plans, 1 Fintech That Could Be a Long-Term Winner, Copyright, Trademark and Patent Information. By clicking "Reject all" you reject all non-essential cookies and similar technologies, but Verizon Media will continue to use essential cookies and similar technologies. They did say they're going to contribute something like half a billion dollars to build up the bank's capital, but that's to really accelerate the national rollout of their banking products, not necessarily to build an actual physical bank, which I don't think is in their plans. Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. By clicking "Accept all" you agree that Verizon Media and our partners will store and/or access information on your device through the use of cookies and similar technologies and process your personal data, to display personalised ads and content, for ad and content measurement, audience insights and product development. EBN advised Red Dot Capital, NGP Capital, and Bank Hapoalim on the deal. Because they offer high-yield savings accounts but they don't hold the money because they're not a bank. Mortgage rates valid as of 06 May 2021 09:54 a.m. EDT and assume borrower has excellent credit (including a credit score of 740 or higher). Being a bank give some control over their interest rates, it gives them control over how much they charge interest rate-wise on loans. IPOE SPAC, SoFi, has recently bought a local community bank, thoughts on its expansion, long-term growth, potential and upcoming IPO. If SoFi obtains final regulatory approval to own a bank, it would have a lower cost of funds to further support SoFi’s growth. Market data powered by FactSet and Web Financial Group. Find the best bank bonuses, promotions, and offers here. You're not going to have a SoFi branch on every corner in your city, but they need some sort of physical banking infrastructure. However, with more and more national and online banks, consumer choice is more extensive than ever. Follow him on Twitter to keep up with his latest work! But our third-party banks that we partner with would never agree to that. Red Dot Capital, Bank Hapoalim and NGP Capital complete a Series C investment round of $28 […] May 10, 2021 Guesty’s $50 Million Financing Round. Stock Advisor launched in February of 2002. Matt Frankel: So that's really what SoFi is thinking when they bought that bank. Anyone in the U.S.A. can get these credit union bonuses: Alliant - $100 ($100 funding for 12 months). Student loan debt in the United States has grown rapidly since 2006. Potential winners include US-based challengers like SoFi, which is planning to go public by June 1; Varo, which received a national banking charter … Jason Moser: Question from Ben Scully. And if, as expected, SoFi is able to obtain a national bank charter after its $22.3 million acquisition of Golden Pacific Bancorp (OTCMKTS:GPBI), that … Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. It's a tiny fraction of SoFi's available cash. The bank itself is not material. The company expects the bank charter … EBN Law advised Guesty on the deal. Student loans are a form of financial aid used to help students access higher education. Like Amazon ( NASDAQ: AMZN ) buying the hardware store on Main Street which is a better fintech?. At the sofi bank charter bank specializes in writing about bank stocks, REITs, and finance... Alliant - $ 50 ( $ 500 funding ) help make sense of the top banks... ( NASDAQ: AMZN ) buying the hardware store on Main Street but he loves investment! The Money because they 're not a bank, they want to a! 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