US online lender SoFi is gearing up to launch a cash management account early next year after inking a payment processing and debit card sponsorship agreement with WSFS Bank.
The firms have agreed a two year deal to support the SoFi Money account, which SoFi vice chairman Steven Freiberg says will “move us closer to our vision of serving all our members’ financial needs”.
SoFi started life as a student loan financing outfit but has been gradually expanding its range of services, acquiring mobile-only bank Zenbanx in February and launching a digital wealth management platform in May.
Over the summer it applied for an industrial loan company charter with the Federal Deposit Insurance Corporation but quickly abandoned this in favour of a “partner-based approach” to new products – something which fits in with the WSFS deal.
The decision to scale back ambitions comes as the firm – once seen as a poster child for the Silicon Valley fintech revolution – faces several lawsuits and sexual harassment allegations, including against co-founder Mike Cagney.