SoFi Technologies Inc SOFI shares traded 1% higher at $12.18 in after-hours trading on Tuesday.
What’s Moving? On Tuesday, in the regular session, SoFi shares closed 8.6% lower at $12.06.
The San Francisco-based digital financial services company said Tuesday it had gained approvals from key regulators to become a full-fledged bank.
Post the approval from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, the road is now clear for SoFi to operate as a Bank Holding Company through its proposed acquisition of Golden Pacific Bancorp, Inc GPBI, as per a statement from SoFi.
Sofi will operate its bank subsidiary as SoFi Bank, National Association, and expects the acquisition to close in February.
“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,” said Anthony Noto, CEO of SoFi.
Why Is It Moving? In March, SoFi announced it was acquiring Golden Pacific Bancorp for $22.3 million. The California community bank at the time had $150 million in assets.
In October, SoFi received conditional approval from the OCC for its national bank charter.
Last year, SoFi went public through a merger with the Chamath Palihapitiya-led Social Capital Hedosophia Holdings V, a special purpose acquisition company. Noto and Palihapitiya have known each other for over 10 years.
SoFi operates Galileo, a leading technology infrastructure service, which according to a tweet from Palihapitiya serves customers like Robinhood Markets Inc HOOD, Chime, Dave.com, and MoneyLion Inc ML.
The enterprise banking infrastructure platform was termed “The AWS of fintech” by the SPAC King.
Read Next: Is Sofi Technologies Stock In Trouble?
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