SoftBank-backed digital lender SoFi applies for new bank charter

Social Finance image sourced from its Twitter page

Social Finance Inc, the online lender known as SoFi, said on Monday it applied for a new bank charter with the U.S. Federal Deposit Insurance Corp.

The company has applied for an industrial loan bank charter in Utah under the name SoFi Bank and listed a Salt Lake City location as its address.

Online news portal TechCrunch first reported the news of SoFi’s application.

SoFi Bank will operate as an online-only institution, with no branches or deposit-taking ATMs, the TechCrunch report said.

The bank will offer customers FDIC-insured NOW account and a credit card product, the report said.

SoFi, which started out as a company that refinances student loans, launched a digital wealth management platform in May.

San Francisco-based SoFi raised $500 million in a Series F financing round led by Silver Lake Partners earlier this year. The company’s investors include Japanese telecommunications and internet company SoftBank Group Corp.

Also Read: SoFi close to raising $500m led by Silver Lake, Asian investors to join too