SoFi Technologies Inc (NASDAQ:SOFI) is trading significantly higher Wednesday morning after the company announced it received approval to become a Bank Holding Company.
The Office of the Comptroller of the Currency and the Federal Reserve approved SoFi's applications to become a Bank Holding Company through its proposed acquisition of Golden Pacific Bancorp. SoFi will operate its bank subsidiary as SoFi Bank, National Association.
The company said it expects the transaction to close next month.
"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, it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners, and communities across the country," said Anthony Noto, CEO of SoFi.
Initially known for its student loan refinancing business, SoFi has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, financial planning and banking services.
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SOFI Price Action: SoFi has traded as low as $12.02 and as high as $24.95 over a 52-week period.
The stock was up 17.4% at $14.16 Wednesday morning.
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