After a tumultuous few weeks, online student lender Social Finance, or SoFi as it is better known, is withdrawing its bank license application.
The decision is a direct result of the recently announced transition of many senior executives, including the stepping down of the San Francisco-based company’s former CEO and co-founder, Mike Cagney.
A few weeks ago, Cagney announced he would step down from the company by year end, after stories alleged that Cagney tried to hide a number of cases of sexual harassment within the company.
SoFi executive chairman, Tom Hutton, has been elected as interim CEO.
Back in June this year, SoFi applied for banking license in the state of Utah as well as with the FDIC so that it could offer its customers deposit accounts.
SoFi spokesman Jim Prosser told Reuters:
A bank charter remains an attractive option when the time is right. This decision does not change our plans to make deposit accounts available through partner banks in the near future.
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