SoFi plans to apply for a bank charter in the next month

[dealmaker]

SoFi plans to apply for a bank charter in the next month
With an eye on providing banking services later this year, online lending startup SoFi is planning to apply for an industrial bank charter in the next month, according to CEO Mike Cagney. If approved, it wouldbecome the first companyto receive new industrial loan company charter in a decade.(TechCrunch)

 

[Soon2Bgreat]

So SoFi "disrupts" the banking industry by revolutionizing the underwriting and lending process - in reality they take on riskier loans with more lenient requirements, are defaulting at higher than expected rates....and now want to become a bank!

I wonder what their motivation is, oh wait, they were kind enough to point that out for us:

“We’re not doing this to fund our loans. We see this as an opportunity to deliver a better product to our members than what’s available today.”

/half kidding

 

[Soon2Bgreat]

"SoFi is a vocal proponent of the potential for online lending to change consumer lending in the U.S. Mike Cagney, founder and chief executive officer, said that his goal is to “kill banks.”"

https://www.bloomberg.com/news/arti...ses-pile-up-as-even-wealthy-borrowers-default