Shares of SoFi Technologies (NASDAQ:SOFI) are having an abysmal day, down more than 7%. As a refresher, SoFi made its public debut last year after entering into a business combination with one of Chamath Palihapitiya’s special purpose acquisition companies (SPACs).
Palihapitiya’s backing hasn’t seemed to help. The financial services company is down more than 20% year to date.
Now, for dedicated SOFI stock bulls, one key announcement offers hope. Will a bank charter bring strength to the rest of 2022?
SoFi Completes Acquisition of Golden Pacific Bancorp
Sofi announced that it has completed the acquisition of Golden Pacific Bancorp and its wholly owned subsidiary, Golden Pacific Bank. The Sacramento-based company operates as a community bank and has roughly $150 million in assets.
Why does this matter? The acquisition will allow SoFi to offer differentiated checking and savings accounts and a more user-friendly interface. Golden Pacific is now SoFi Bank, National. The Golden Pacific acquisition is a key part of SoFi’s path to a banking license.
SoFi also announced that it plans to launch a checking and savings account feature in the coming weeks that will provide up to a 1% annual percentage yield (APY). SoFi CEO Anthony Noto added that:
“Through this acquisition, Golden Pacific Bank members can expect an elevated digital and more robust mobile banking experience to serve local businesses and individual customers.”
SOFI Stock Fans Celebrate National Bank Charter
Earlier in 2022, SoFi obtained a charter from the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to become a national bank. Noto said at the time that the charter will allow SoFi to offer “more competitive interest rates.”
With the Fed expected to raise interest rates in March for the first time since December 2018, SoFi will be able to charge higher rates on loans. This, in turn, should increase its revenue. With the acquisition of Golden Pacific now complete, SOFI bulls are likely hoping for strong performance the rest of the year.
As of now, it remains too early to conclude whether SoFi will succeed as a national bank or not. However, the digital financial services company is undoubtedly moving in the right direction with a flurry of new developments.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
