Fintech lender SoFi follows Zopa on millennial banking path

By Daniel Lanyon on Wednesday 14 June 2017

Alternative Lending

The US-based leader in the marketplace lending market also wants to offer checking accounts under its new SoFi Bank brand.

Alternative lender SoFi is plotting the launch checking (current) accounts as part of its longer term plans to offer a fuller suite of financial products to compete amongst the largest US banks.

The San Francisco-based firm, which is biggest player in online student loans market, has expanded rapidly in recent years. Back in February 2017 SoFi acquired Zenbanx with view to entering digital banking sector.

Now, SoFi has submitted its own application in order to gain an official Bank Charter – this means it can incorporate Federal Deposit Insurance.  The proposed industrial bank will be named SoFi Bank, a wholly owned subsidiary of SoFi, with 100 per cent of all issued stock to be held by SoFi.

In its application SoFi said: “The bank will primarily, although not exclusively, offer its accounts and other products and services to SoFi members, which make up borrowers and investors on the SoFi platform. SoFi specializes in marketing financial products and services to people who prefer to access banking products and services over the Internet and other electronic systems, especially ‘Millennials’.”

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