In this video, I will be talking about SoFi Technologies' (NASDAQ:SOFI) new hire Chad Borton, the new president of SoFi Bank, and I'll touch on a couple of points from the Goldman Sachs 11th Annual Financial Technology Conference. You can find the video below.
Last week, SoFi named Chad Borton the new president of SoFi Bank, showing real confidence that a bank license might be close. Borton previously served as USAA's bank president and previously worked at JPMorgan Chase and Fifth Third Bank as well.
Today, SoFi is regulated by 50 states for lending; this means it has to 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 mortgages. 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 sponsoring bank, and if Galileo's partners want to offer credit cards, SoFi would be able to provide this service. The B2B opportunity here is immense.
Anthony Noto called Galileo the "AWS of fintech" during the Goldman Sachs 11th Annual Financial Technology Conference. He expects it to be on four different continents in three to five years, excluding North America.
In this day and age, being able to move quickly to add and improve financial services is crucial, and that's where Galileo comes in.
For full insights, do watch the video below.
*Stock prices used were the closing prices of Sept. 20, 2021. The video was published on Sept. 21, 2021.