SoFi ditches ILC push for full-service bank charter

Fintech company SoFi applied for a full-service national bank charter with the OCC after withdrawing its industrial loan company application nearly three years ago, according to reports. ICBA strongly opposed SoFi Bank’s ILC application and continues calling on Congress to permanently close the ILC loophole.

With a full-service national bank charter, SoFi and its bank will be subject to the same rules, oversight and supervision that apply to other national banks and bank holding companies.

Community bankers can use ICBA's Be Heard grassroots action center to urge their senators to co-sponsor legislation to close the ILC loophole. The customizable message urges support for the Eliminating Corporate Shadow Banking Act (S. 2839), which would subject ILCs to the Bank Holding Company Act.

ICBA recently called on the FDIC to deny Rakuten Bank America’s resubmitted ILC application and urged the agency to strengthen its proposal to enhance oversight of ILC parent companies.