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SoFi: a FinTech, a Challenger, and a Bank

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SoFi: a FinTech, a Challenger, and a BankThe alliance between traditional banks and disruptive FinTechs is no news – the past few years have witnessed several established financial institutions acquiring or collaborating with these novel business model providers to develop collaborative business propositions. As the FinTech industry matures, many of these newcomers are venturing to become a full-stack business by obtaining the trusted safety net of licenses to operate as a bank. The agenda is to reimagine the entire business model and technology stack of the financial industry by launching an extensive set of customer-centric offerings for a variety of segments. And having a license enables a FinTech to get regulatory endorsement to build trust with the consumers, and to independently do everything that an incumbent can do. SoFi has become the latest American FinTech to acquire a banking charter in this race of banking licenses, as the national regulators accepted its applications to become a Bank Holding Company and form SoFi Bank. Through this post, we take a look at some of the key events that shaped its path towards becoming a national bank.SoFi—which started as student loan refinance FinTech —first set its sights on acquiring a banking license […]

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