The regulatory agency said in a press release Tuesday that it
also approved Social Finance’s application to create SoFi Bank, which will be
based in Cottonwood Heights, Utah. SoFi will have $5.3 billion of assets and
$718 million of capital at the end of its first year of operation.
The OCC approval includes a number of conditions for SoFi,
including specific capital contributions, adherence to an operating agreement and
confirmation that the bank will not engage in any crypto-asset activities or
services.
SoFi Technologies said in a separate release that it had been approved by the Federal Reserve to become a
bank holding company.
“Today’s decision brings SoFi, a large fintech, inside the
federal bank regulatory perimeter, where it will be subject to comprehensive
supervision and the full panoply of bank regulations, including the Community Reinvestment
Act,” Acting Comptroller Michael Hsu, said in the release.
“This levels the playing field and will ensure that SoFi’s
deposit and lending activities are conducted safely and soundly,” Hsu said. “Like
every other national bank we supervise, the OCC will require SoFi Bank … to be
adequately capitalized, have strong risk management programs, policies and
procedures in place, and provide fair treatment to its customers.”
SoFi agreed in March 2021 to buy the $170 million-asset Golden Pacific
for $22.3 million in cash. The deal was originally expected to close at the end
of last year.
“This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” Anthony Noto, SoFi's CEO, said in the company's release.
The national bank charter will "enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners and communities across the country, while continuing to uphold a high bar of regulatory standards and compliance," Noto added.
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