SoFi Technologies Inc. is buying banking-software maker Technisys SA for about $1.1 billion,
The latest in a string of deals designed to transform the lender into a one-stop financial shop.
The deal is equivalent to roughly 10% of SoFi’s market value, which gives SoFi control of its own core-banking platform, the back-end technology that banks use to power mobile-banking apps, open accounts and keep track of customer deposits.
- SoFi recently has looked into deals that branch out beyond its roots, as a lender that focused on refinancing student debt.
This month, it became a bank when it completed its acquisition of Golden Pacific Bancorp Inc., a Californian lender.
In 2020, SoFi agreed to spend about $1.2 billion on Galileo Financial Technologies Inc., a financial-infrastructure company focused on issuing debit cards.
*Fintech futures tweet on SoFi’s deal w/Technisys
Technisys’ shareholders will receive 84 million shares of SoFi common stock worth $1.1 billion.https://t.co/Pq78214wVU
— FinTech Futures (@FinTech_Futures) February 22, 2022
SoFi will use Technisys’s platform to roll out personalized financial services to its own banking customers. It will also allow other banks and financial-technology companies to use the platform, which today is mostly used by banks in Latin America.
The fintech market has continued to help expand access to financial services during the COVID-19 pandemic, particularly in emerging markets, with strong growth in all types of digital financial services except lending.
According to a study published by the World Bank