SoFi Officially Acquires Golden Pacific Bancorp, Becomes SoFi Bank
phones with the SoFi app

SoFi Officially Acquires Golden Pacific Bancorp, Becomes SoFi Bank

Whether you’re a FinTech observer or an everyday American, you’ve probably heard the name “SoFi” a lot lately. For the latter group, that’s likely because this year’s Super Bowl is set to be held at SoFi Stadium in Los Angeles. Yet, outside of that high-profile naming rights deal, the startup has continued to make headlines as it grows and expands. On that note, this week, the company took a major step forward by officially becoming a bank.

SoFi has now completed its acquisition of Sacramento-based Golden Pacific Bancorp, which will now be known as SoFi Bank. The plan to acquire Pacific Bancorp was announced nearly one year ago, with the deal costing SoFi approximately $22.3 million. While SoFi will invest $750 million to grow the bank’s digital presence, it notes that it will also still operate Golden Pacific Bank’s three brick-and-mortar branch locations in Sacramento, Live Oak, and Yuba City, California.

According to SoFi, following the acquisition, it now plans to offer customers 1% APY on their funds. Currently, their SoFi Money hybrid account earns 0.25% APY following multiple interest rate cuts in recent years. Additionally, the platform will forgo its hybrid status to offer separate checking and savings accounts going forward while also teasing a “more user-friendly interface.” These changes are expected to take place in the coming weeks, although no specific timeline was announced.

In a press release detailing the completed purchase, SoFi CEO Anthony Noto said, “This announcement reflects SoFi’s ongoing mission to help people achieve financial independence and realize their ambitions. 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.”

Virginia Varela, Golden Pacific Bank’s President and CEO, added, “This new partnership will enhance our ability to provide the highest level of service while offering our customers a suite of products designed to help them get their money right. I look forward to working hand in hand with our new team as we continue to deepen our community banking experience in Sacramento and surrounding counties.”

Of course, SoFi isn’t the first major FinTech to become a national bank via acquisition. For example, in 2019, LendingClub purchased Radius Bank, renamed to LendingClub Bank. Meanwhile, Varo Bank became the first digital banking service to obtain a national banking charter in 2019, which it did without acquiring an existing bank. Despite this, the advent of SoFi Bank is still a major moment for FinTech and for the company itself. Considering that SoFi had already branched out into several aspects of finance even without a banking charter, it will be fascinating to see where the company takes its ambitions from here.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories:, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...