SoFi, the digital bank, has made an all-cash acquisition of Wyndham Capital Mortgage, which is expected to broaden its suite of mortgage products and minimize its reliance on third-party partners. This move comes after several weeks of volatility in the banking sector, including the collapse of SVB Financial and Signature Bank, and Credit Suisse being acquired. SoFi is looking to build a one-stop banking ecosystem, just like Amazon Web Services of fintech.
The company believes that the acquisition will create value for its investors within six months of closing, and this “full stack” approach will reduce outsourced costs, contributing to SoFi’s bottom line. Although there are some concerns about the potential risks of the deal in light of the rising interest rates and a recession, SoFi’s leadership believes that the acquisition of Wyndham will help to enhance unit economics and create value for long-term investors.
