“We believe that by pursuing a national banking charter, we will be able to help even more people get the most out of their money with improved value and more products and services,” Antoine Noto, CEO of SoFi, said in a Press release Tuesday (March 9).
He added that the combination with Golden Pacific will help accelerate SoFi’s development of a “national bank subsidiary”. The partnership will also help SoFi expand its financial service offerings and enable Galileo’s technology platform to better serve local communities.
Golden Pacific has three branches – in Sacramento, Yuba City, and Live Oak – and around $ 150 million in assets. Pending regulatory approval, SoFi will invest $ 750 million for bank capitalization for digital switch-over and nationwide deployment.
Virginie varela, president and CEO, Golden Pacific Bank, NA, said joining SoFi strengthens the bank’s ability to provide first-class service to its customers. “We will continue our commitment to provide more services and amenities to our individual customers, small businesses and the communities we serve in Sacramento and surrounding counties,” she added.
With a national banking charter, SoFi will be able to accept deposits and provide loans secured by members’ deposits instead of the more expensive loan products it offers as a non-bank. The Silicon Valley startup has already obtained conditional approval from the Office of the Comptroller of the Currency (OCC) in October 2020 based on its initial plan. SoFi will work with GPB on a new business plan for the OCC and then apply for Bank Holding Company status from the Federal Reserve.
SoFi merged with social capital – a special purpose acquisition company (SPAC) – for $ 8.6 billion in January of this year. The agreement with SoFi is PSPC’s third to date. Earlier this year, SoFi acquired payments company Galileo for $ 1.2 billion. It also acquired the Hong Kong 8 Securities investment app.