SoFi’s Recent Acquisition Moves It Toward Building ‘The AWS Of Fintech’

SoFi's Recent Acquisition Moves It Toward Building 'the AWS Of Fintech'
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SoFi technologies to acquire Miami based Technisys for $1.1 billion.

SoFi’s cloud service provider will make a vertically integrated banking technology product capable of supporting traditional financial products like credit cards, checking and saving accounts, said the company in a press release. This will make SoFi serve established banks and fintech and non-financial brands to enter the financial services space. 

Technisys is a cloud-native digital banking platform that supports back-office operations and customer experience interaction for online banks. Technisys was founded in 1999, and the firm is backed by $64 million in funding from investors. These investors include Riverwood Capital and Endeavor Catalyst in New York. 

Technisys has banking and fintech customers, including HSBC, Rellevate, TABbank and Brazil’s Banco Itaú across sixteen countries. After the deal closes with Miguel Santos staying on as CEO, the company wishes to operate as an independent subsidiary of SoFi.

According to SoFi, the company acquired Technisys cloud technology platform inspite of going for the third party products will result in up to $85 million in cost savings from 2023 to 2025 and up to $70 million yearly. 

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The wall street journal reported, “SoFi estimated that the acquisition will produce up to $800 million in additional revenue through 2025”.

“The acquisition of Technisys is an essential building block in delivering on our member-centric, digital one-stop-shop experience for SoFi members and our partners,” said SoFi CEO Anthony Noto. (SOURCE:WWW.bizjournals.com)

SoFi Technologies is an American online personal finance company. In San Francisco, SoFi provides financial products, including student and auto loan refinancing, mortgages, personal loans, credit cards, investing, and banking through mobile app and desktop interfaces. It was founded in August 2011, and Mike Cagney, Dan Macklin, James Finnigan and Ian Brady are the founders of SoFi. Headquarters are in San Francisco, Californian and US. They produce different products like Student loans, Home Loans, Personal loans, Stockbroker, Wealth management and credit cards. 

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