On January 18, 2022, the OCC conditionally approved Social Finance, Inc. ("SoFi") applications to charter a full-service national bank.
In the OCC letter, SoFi Interim Bank, National Association ("SoFi Bank, N.A.") has received conditional approval and also received approval to acquire Golden Pacific Bank, National Association as part of the transaction. SoFi Bank, N.A. will have $5.3 billion in total assets. The OCC is requiring, among other conditions, initial paid-in capital of $750 million upon consummation of the transaction. The bank will continue to offer local commercial-focused offerings and deposit products that Golden Pacific previously offered.
The letter states that the bank will also provide a fully digital lending platform for consumers nationally. This is contingent upon (i) meeting the required capital contributions, (ii) adhering to an Operating Agreement, and (iii) confirming that the bank will not engage in any "crypto-asset activities or services."
Additionally, SoFi Technologies, the parent company of SoFi Bank, N.A., has a pending application to the Federal Reserve Board to become a bank holding company and, therefore, would be subject to consolidated supervision.
Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of having an even "playing field." He stated that bringing a large FinTech company "inside the federal bank regulatory perimeter" will subject the company to "bank regulations, including the Community Reinvestment Act," and "comprehensive supervision."
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