SoFi says still moving ahead in Delaware (Update 10/5)
Tom Paine
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With the recent news out of online lender SoFi ( SoFi Board Says C.E.O. Is Out Immediately Amid Sexual Harassment Scandal), reports have raised questions not only concerning executives' personal behavior, but some of SoFi's business practices as well. Although SoFi is privately held, the information it has released about its finances suggests its performing well to date.
SoFi, founded in 2011, is valued at more than $4 billion and has raised $1.9 billion from venture investors, including Baseline Ventures, Discovery Capital and SoftBank.
But what about its plans for Delaware? SoFi closed Zenbanx, the Claymont-based online banking provider founded by ING Direct USA founder Arkadi Kuhlmann, in August after acquiring it in February for about $100 million. Zenbanx had a partnership with Wilmington Savings Fund Society (WSFS) that expired in July and, rather than renew it or find another partner, the company decided to just close existing accounts. SoFi has applied for its own banking charter, which is still pending. In June, SoFi said it would add 400 workers in Claymont by the end of 2018.
Jim Prosser, SoFi VP of Communications and Policy, told me by email that its expansion plans for Delaware haven't changed.
"We wound down the Zenbanx product, but retained most of the staff and are building on top of their technology to bring our banking products to market. Our plans for Delaware remain exactly the same as we said in July, and we're actively hiring. You can check out the open roles here: https://www.sofi.com/careers/. (Note that each role may have multiple openings. We're hiring way more than one customer service rep, for instance!)"
Update 9/25:
SoFi's top technology executive, who is also the wife of former Chief Executive Mike Cagney, plans to leave https://t.co/aZkk8DU0Bu
— Wall Street Journal (@WSJ) September 25, 2017
Update 10/5:
Reuters: SoFi's CEO hiatus stalls its big-time banking ambitions
Explains why bank charter is so critical to SoFi's plans.
10/13: But not so critical that SoFi can't drop it: SoFi Withdraws U.S. Banking Application, Citing Leadership Change (Fortune)
