News & Tips

FinTechs Bank On Reimagining Business Banking

PYMNTS - Fintech Business Banking | LoanNEXXUS

Source: PYMNTS

Business banking is being reimagined by FinTechs, in an interconnected way – one that, conceptually, creates a one-stop shop for enterprises to accept payments, interact with supply chains and tap working capital in order to finance growth.

Nowhere might that be more readily apparent than Square’s announcement that it has launched Square Banking, geared toward small businesses, combining a range of accounts and payment modalities in an effort to help those firms manage cash flow.

In terms of mechanics, the offering links checking accounts, savings accounts, cards and lending options.

It’s a move away from the payments processing core service that had marked its initial incarnation.

Connecting the checking account to the payments functionality would mean that funds gleaned from sales would instantly be spendable from the checking functions to, for example, pay workers through the Payroll function.

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July 23, 2021 |

SoFi Announces Agreement to Acquire Golden Pacific Bancorp, Inc.

SoFi | LoanNEXUS

Source: SoFi

Acquisition Marks Significant Step in SoFi’s Effort to Obtain National Bank Charter

SAN FRANCISCO — March 9, 2021 — Social Finance, Inc. (“SoFi”), the digital personal finance company, today announced that it has signed a definitive agreement to acquire Golden Pacific Bancorp, Inc. (OTCPK: GPBI) and its wholly owned subsidiary Golden Pacific Bank, N.A. (together, “GPB”). GPB is a Sacramento, California-based community bank that is regulated by the Office of the Comptroller of the Currency (OCC) and has approximately $150 million in assets. SoFi will pay $2.55 in cash for each share of GPB or approximately $22.3 million in aggregate to acquire GPB to advance SoFi’s effort to obtain a national bank charter.

The proposed acquisition is a key strategic step in SoFi’s path to obtaining a national bank charter. As a result of the proposed acquisition, SoFi will switch its current de novo bank application to a change of control application. If successfully granted a national bank charter by the OCC and Federal Reserve pursuant to its change of control application, SoFi plans to contribute $750 million in capital and pursue its national, digital business plan while maintaining GPB’s community bank business and footprint, including GPB’s current three physical branches. Once the transaction is complete–which is anticipated before the end of 2021–GPB’s community bank business will operate as a division of SoFi Bank, N.A., a renaming of GPB’s bank entity. GPB President and Chief Executive Officer Virginia Varela will continue to lead the GPB community bank business under the direction of Paul Mayer, who will serve as President of SoFi Bank, N.A.

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March 11, 2021 |

Digital Lending Levels The Playing Field For Small Business Borrowers


Source: Forbes

America’s largest banks have been shrinking their branch networks for the past several years, mostly by cutting back in relatively poor neighborhoods, according to a report in the LA Times. The report said that consumer advocates are warning that the closings risk widening the wealth gap by leaving scores of low-income areas with less competition for banking services such as personal checking and small-business lending.

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March 23, 2019 |

Big banks get green light to make small short-term loans


Source: CNBC / MSN

Consumers who rely on payday loans to fill their budget gaps may have a new option to turn to: traditional banks. National banks just received the go-ahead to serve that market from their regulator, the Office of the Comptroller of the Currency.

On Wednesday, Comptroller of the Currency Joseph Otting called for national banks and federal savings associations to step into the short-term, small-dollar installment loan market.

These loans typically range from $300 to $5,000, according to the regulator. And that adds up to about $90 billion in loans taken out every year by millions of U.S. consumers.

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May 28, 2018 |
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