IIn this video I will talk about SoFi Technologies‘ (NASDAQ: SOFI) new recruit Chad Borton, the new chairman of SoFi Bank, and I’ll cover a few points from Goldman Sachs 11th annual FinTech conference. You can find the video below.
Last week, SoFi appointed Chad Borton as the new chairman of SoFi Bank, showing real confidence that a banking license could be near. Borton previously served as President of USAA Bank and also worked at JPMorgan Chase and Fifth Third Bank.
Today, SoFi is regulated by 50 states for lending; this means that it must comply with 50 different sets of compliance rules. Once SoFi gets a banking license, it will be regulated by the Federal Reserve, FDIC, and OCC, which will make things much easier.
By being a bank, SoFi will be able to hold more loans on its balance sheet, and it will no longer have to limit its number of mortgage loans. The license will also allow SoFi to determine its own interest rates instead of relying on a sweep partner. SoFi would then also become Galileo’s sponsor bank, and if Galileo’s partners wish to offer credit cards, SoFi would be able to provide this service. The B2B opportunity here is huge.
The future of Galileo
Anthony Noto called Galileo “AWS of fintech” at Goldman Sachs 11th annual FinTech conference. He expects it to be on four different continents within three to five years, excluding North America.
Nowadays, being able to move quickly to add and improve financial services is crucial, and that’s where Galileo comes in.
For a full rundown, watch the video below.
* The stock prices used were the closing prices of September 20, 2021. The video was posted on September 21, 2021.
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Neil Rozenbaum owns shares of SoFi Technologies, Inc. The Motley Fool owns shares and recommends SoFi Technologies, Inc. The Motley Fool has a disclosure policy. Neil is a subsidiary of The Motley Fool and may be remunerated for promoting its services. If you choose to subscribe via his link, he will earn extra money to support his channel. His opinions remain his own and are unaffected by The Motley Fool.
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