New banks

With no-fee ETFs, is SoFi a challenger bank now?

  • SoFi files plans for a series of no-fee ETF.
  • The consumer lender is blurring the lines between lender and bank.
close

Email a Friend

With no-fee ETFs, is SoFi a challenger bank now?
SoFi plans to launch the industry's first no fee exchange traded funds. The consumer lender filed a series of no-fee ETFs with the SEC. These investment products won't charge investors a management fee, at least in the first year of operation. What's happening here:  The investment industry continues to introduce low fee investment products. Some ETF families and brokers like Vanguard and Schwab offer their investors fee waivers on certain investment products. Those are only available to brokerage customers. SoFi's ETFs would be available freely to everyone. SoFi's ETFs are also designed with millennial investors in mind, including funds with 500 and 50 constituents along with the SoFi Gig Economy ETF. Tearsheet's Take: Most challenger banks launch with a basic current account and then roll out more banking, lending, and investing products as they mature. SoFi's playbook began in the reverse -- it went to market with student loan refinancing and is now moving into investing and investment products with the launch of no-fee ETFs. In a way, SoFi and the other challenger banks are headed in the same direction: providing their users with full access to financial products through a single interface. SoFi's marketing has focused on membership benefits, investing a lot in customer acquisition up front. With this tighter relationship, SoFi believes it can successfully introduce other financial products to its members.

0 comments on “With no-fee ETFs, is SoFi a challenger bank now?”

New banks

Rebundling banking services: Are fintechs trying to be more like banks?

  • Why are fintechs that have grown to a certain size continuing to pursue a banking license?
  • Luis Trujillo, CCO at Alviere sheds light on whether acquiring a license guarantees a successful banking business model for fintechs and if it constitutes a threat to banks.
Sara Khairi | January 09, 2023
Banking as a service, New banks

The Big Bank Theory Conference 2022: All session videos

  • Tearsheet's Big Bank Theory Conference brings together the most innovative players changing the face of the financial institution.
  • Here are the videos from this year's conference, held in December online.
Shabih Rao | December 21, 2022
Modern Marketing, New banks

Embracing ‘side bank’ status: 5 questions with Aaron Wollner, CMO of Quontic

  • As a community bank turned digital bank, Quontic has its own unique challenges in sticking out of the crowd.
  • In this Q&A, CMO Aaron Wollner talks about what’s new in the digital bank’s campaign work and how it’s been shifting its messaging to fit the current financial climate.
Rivka Abramson | October 19, 2022
New banks, Sponsored

Creating a winning neobank strategy through differentiation

  • There is a notable opportunity for neobanks to fill gaps that currently exist in traditional financial services, especially since they are free of the restraints of dated technology.
  • However, to be effective, they must identify a primary differentiator or central mission and then build the user experience around that north star.
Praxent | October 18, 2022
Member Exclusive, New banks

Banking Briefing: Will WFH become a thing of the past?

  • Banks are pushing to get employees back in the office – but what will that do for their efforts to attract tech talent?
  • Meanwhile, gender inequality is alive and well in the banking industry. Here’s what one bank is doing to try and solve that.
Rivka Abramson | September 12, 2022
More Articles