June 12, 2017 / 9:35 PM / a month ago

Digital lender SoFi applies for new bank charter

2 Min Read

Mike Cagney, CEO, Chairman and co-founder of SoFi, speaks during the TechCrunch Disrupt event in New York City, U.S., May 16, 2017.Brendan McDermid

(Reuters) - Social Finance Inc, the online lender known as SoFi, said on Monday it applied for a new bank charter with the U.S. Federal Deposit Insurance Corp.

The company has applied for an industrial loan bank charter in Utah under the name SoFi Bank and listed a Salt Lake City location as its address.

Online news portal TechCrunch first reported the news of SoFi's application. tcrn.ch/2te7IJJ

SoFi Bank will operate as an online-only institution, with no branches or deposit-taking ATMs, the TechCrunch report said.

The bank will offer customers FDIC-insured NOW account and a credit card product, the report said.

SoFi, which started out as a company that refinances student loans, launched a digital wealth management platform in May.

San Francisco-based SoFi raised $500 million in a Series F financing round led by Silver Lake Partners earlier this year. The company's investors include Japanese telecommunications and internet company SoftBank Group Corp (9984.T).

Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila

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