A Much-Awaited Upgrade

Human beings can afford many mistakes, but they cannot afford to stay in one place for long periods. If we do so, we run a major risk of stagnating and falling behind the time. Hence, to make sure that we are moving forward under all circumstances, we approach every step in a unique manner. This empowers us significantly in regards to instilling an added value within our experiences, and following each such addition; we end up turning a new corner. Now, while you might find the said setup as productive beyond all known limits, it does come with certain limitations. For instance, having to construct unique ideas for progression can very well brings its own challenges over time. With that dynamic slowly taking the centre stage, you tend to recognize how important it was for us to discover a creation like technology. Technology’s versatility would go on to establish a never-ending supply of innovative ideas. These ideas weren’t just about taking a step here or there, but they rather talked to revolutionizing the way we lived our lives. The change on a bigger scale, however, was only achieved after things were sorted out on the granular level. A part of this larger push was orchestrated by our financial sector. Having pledged its allegiance to technology in the recent years, the finance industry seems to be enjoying what feels like a very interesting phase. In fact, looking at SoFi’s approval story, it won’t be wrong to assume that even better things are in store for the sector.

SoFi technology has formally received an approval from the Office of the Comptroller of the Currency to scale up and turn into a full-fledged bank. Even though the company already offers banking products including loans, cash accounts, and debit cards etc, it relies heavily on partnerships with FDIC banks to hold customer deposits or issue loans, except that is now set to change. The approval news was welcomed by a 16% surge in SoFi’s stock price. However, there is still some work to do before SoFi can become a bank. For starters, the company needs to close the agreed acquisition of Golden Pacific Bancorp. Furthermore, OCC also mandated SoFi to move past the current conditional status and function as a full-service national bank.

“This important step allows us to add to our broad suite of financial products and services to better be there for our members during the major financial moments in their lives and all of the moments in between,” said Anthony Noto, CEO of SoFi.

From a regulatory standpoint, SoFi will have to work within a tighter framework, but by establishing a direct relationship with the customers, the company should hope to operate in a much more economically sound environment. A fact worth noting here, however, is that despite the approval, SoFi cannot engage in any cryptocurrency-related activities.