Online lender SoFi applies for bank charter

US online lender SoFi has applied for a bank charter with the Federal Deposit Insurance Corporation.

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Online lender SoFi applies for bank charter

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The firm, which started life as a student loan financing outfit, has been gradually expanding its range of services, aquiring mobile-only bank Zenbanx in February and launching a digital wealth management platform in May.

According to the FDIC filing, the company is seeking to establish an industrial bank chartered by the state of Utah "for the purposes of providing its customers a FDIC insured NOW account and a credit card product."

The firm says it will target the service at millennials who no longer see the need for a tradtional banking relationship and conduct most of their transactions via electronic channels.

The move into the banking marketplace comes just four months after SoFi secured a $500 million funding round, giving it the financial muscle to pursue an aggressive expansion strategy.

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