Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

'Fintech' Startup SoFi Moving into Traditional Banking

SoFi is one of a wave of new financial-technology, or "fintech," startups

SoFi, whose name comes from the moniker Social Finance, was founded in 2011 with a focus on refinancing student loans, photo: Pexels
5 months ago

NEW YORK – Online lender and financial startup SoFi has taken the first step toward competing with the nation’s biggest banks on their home turf: the checking account.

Last week, the San Francisco provider of student and personal loans submitted an application for federal deposit insurance, a protection normally only available to conventional banks. In its application, the company said its SoFi Bank subsidiary will offer bread-and-butter banking products, including checking accounts, debit cards and eventually credit cards.

SoFi is one of a wave of new financial-technology, or “fintech,” startups that aim to reengineer the way people in the U.S. manage their savings, take out loans and pay for things.

The company, whose name comes from the moniker Social Finance, was founded in 2011 with a focus on refinancing student loans. The company quickly branched into other products aimed primarily at millennials, including personal loans, mortgages, wealth management and, recently, insurance.

Unlike other fintechs such as Prosper and Lending Club, SoFi funds all of its loans from its own capital. That allows it to make loans more quickly and sometimes at lower rates than its competitors.

In its application to the Federal Deposit Insurance Corporation (FDIC), SoFi plans to fund its new bank subsidiary with $166 million in capital. SoFi raised money from investors earlier this year, including Japanese company Softbank and venture capital firm Silver Lake.

SoFi’s application carries symbolic value as well. Since the financial crisis nearly a decade ago, only a handful of brand new banks have arisen. And no institution has applied for coverage from the FDIC under Utah’s industrial bank laws in 10 years.

KEN SWEET

Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Sessions denies lying on Russia, pleads ...

4 days ago
Business

Senate GOP intent on scrapping health ma ...

4 days ago
Business

Asian shares fall, tracking Wall St, dro ...

4 days ago
Latest News

Washington GOP boosts pressure on Alabam ...

4 days ago
Most Popular

International Virtual Reality Festival t ...

By The News
Business

EU adds haste with call for UK Brexit pr ...

By The Associated Press
World

Meet Mexico City's Foreign Lucha Libre W ...

By The News
Living

Doctor: Hernandez's brain was severely d ...

By The Associated Press
Living

Kenseth Has No Regrets Over End of the R ...

By The Associated Press
Sports