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SoFi outlines plans for bank subsidiary in FDIC application

Social Finance Inc. filed an application with the Federal Deposit Insurance Corp. on June 6, revealing details on its plans for an industrial bank chartered by the state of Utah.

As a wholly owned subsidiary of SoFi, SoFi Bank would offer FDIC-insured negotiable order of withdrawal accounts and a credit card product. The bank would be online only, with no branches or deposit-taking ATMs.

The proposed bank would be headquartered in Salt Lake City, though some operations would be conducted in Wilmington, Del. Because it is branchless, the bank's CRA assessment area would be based on its Salt Lake City headquarters

The company said SoFi Bank will primarily offer accounts, products and services to SoFi members who are borrowers and investors on its platform. Regarding the credit card product, SoFi said in the application that the bank would offer a rewards program that allows customers to pay down SoFi loans balances.

SoFi Bank's proposed directors include Arkadi Kuhlmann, Mike Cagney, Luther Helms, David Kirchheimer and Carl Snyder. Kuhlmann is the proposed CEO of SoFi Bank. He is the founder and former CEO of Delaware-based mobile banking service provider Zenbanx, which SoFi acquired in early 2017. Cagney is SoFi's CEO, chairman and co-founder. Tom Hugh is the proposed chief revenue officer.

The comment period on the pending de novo charter application will close July 6.