Page 24 - ARUBA TODAY

Wednesday 14 June 2017 BUSINESS
A24
‘Fintech’ startup SoFi moving into traditional banking

By KEN SWEET eventually credit cards. as Prosper and Lending nity.” under what’s known as an
AP Business Writer SoFi is one of a wave of Club, SoFi funds all of its But no one should expect industrial bank charter.
NEW YORK (AP) — Online new financial-technology, loans from its own capital. to see a SoFi branch in their In its application to the Fed-
lender and financial startup or “fintech,” startups that That allows it to make loans neighborhood any time eral Deposit Insurance Cor-
SoFi has taken the first step aim to reengineer the way more quickly and some- soon. In its application, SoFi poration, SoFi plans to fund
toward competing with the Americans manage their times at lower rates than its says it believes its all-digital its new bank subsidiary with
nation’s biggest banks on savings, take out loans and competitors. approach — meaning no $166 million in capital. SoFi
their home turf: the check- pay for things. While it’s branching into physical branches — will raised money from inves-
ing account. The company, whose other products, SoFi contin- better serve customers, tors earlier this year, includ-
Last week, the San Fran- name comes from the ues to market itself primarily particularly those who find ing Japanese company
cisco provider of student moniker Social Finance, to younger college gradu- visits to traditional bank of- Softbank and venture capi-
and personal loans sub- was founded in 2011 with ates with well-to-do jobs, fices unnecessary. tal firm Silver Lake.
mitted an application for a focus on refinancing stu- often in major metropolitan The company, however, SoFi’s application carries
federal deposit insurance, dent loans. areas. will have back-office op- symbolic value as well.
a protection normally only The company quickly The company aims to make erations in both Delaware Since the financial crisis
available to conventional branched into other prod- its clients feel like members and Salt Lake City, Utah. nearly a decade ago, only
banks. In its application, the ucts aimed primarily at mil- of an exclusive club, hold- Like other Silicon Valley fin- a handful of brand new
company said its SoFi Bank lennials, including personal ing networking events for techs, SoFi has taken ad- banks have arisen. And no
subsidiary will offer bread- loans, mortgages, wealth them in locales such as San vantage of banking laws institution has applied for
and-butter banking prod- management and, recent- Francisco and New York unique to Utah that allow coverage from the FDIC
ucts, including checking ly, insurance. and referring to them as non-bank companies to under Utah’s industrial bank
accounts, debit cards and Unlike other fintechs such part of the SoFi “commu- set up banking operations laws in 10 years.q
Verizon takes over Yahoo to complete $4.5 billion deal

By MICHAEL LIEDTKE ous AOL services.
AP Technology Writer About 2,000 Yahoo and
SAN FRANCISCO (AP) — AOL workers are expected
Verizon has taken over to lose their jobs as Verizon
Yahoo, completing a $4.5 trims expenses and elimi-
billion deal that will usher in nates overlapping posi-
a new management team tions.
to attempt to wring more “Now that the deal is
advertising revenue from closed, we are excited to
one of the internet’s best- set our focus on being the
known brands. best company for con-
Tuesday’s closure of the sumer media, and the best
sale ends Yahoo’s 21-year partner to our advertis-
history as a publicly traded ing, content and publisher
company. It also ends the partners,” Armstrong said.
nearly five-year reign of Verizon won’t be getting
Yahoo CEO Marissa Mayer, Yahoo’s prized stakes in
who isn’t joining Verizon. two Asian internet compa-
She will walk away from nies, Alibaba Group and
Yahoo with a compensa- Yahoo Japan. Those will
tion package currently belong to a newly formed
worth about $125 million, In this 2014 photo, Yahoo president and CEO Marissa Mayer speaks during the International Con- company called Altaba,
including her severance sumer Electronics Show in Las Vegas. On Tuesday, June 13, 2017, Verizon took over Yahoo, com- which also will inherit Ya-
pay and stock awards that pleting a $4.5 billion deal that will usher in a new management team to attempt to wring more hoo’s $8 billion in cash
advertising revenue from one of the internet’s best-known brands.
will be fully vested with the (AP Photo/Julie Jacobson) and any money that might
deal’s completion. have to be paid in various
Yahoo’s email and other will be run by Tim Arm- bought that company for of a new Verizon subsid- shareholder lawsuits filed
digital services such as strong, who has been run- $4.4 billion two years ago. iary called Oath, which will against Yahoo leading up
sports, finance and news ning AOL since Verizon Armstrong will now be CEO consist of Yahoo and vari- to the sale.q
Sears to cut 400 full-time jobs, mostly at corporate office

ANNE D’INNOCENZIO AP Business Writers Holdings says it will cut cent of the 140,000 full-time stores by early September.
JOSEPH PISANI NEW YORK (AP) — Sears about 400 full-time jobs as and part-time employees it That’s on top of the 150
part of the troubled retail- had at the end of January. stores that closed in April.
er’s plan to turn its business Sears Holdings Corp. said “We are making progress
around. Tuesday that the job cuts with the fundamental re-
The company, which owns are part of its previously structuring of our opera-
the Sears and Kmart chains, announced plans to save tions that we initiated in
says the cuts include some $1.25 billion in costs a year. February,”
at its corporate offices in The retailer, which has been Edward S. Lampert, chair-
Hoffman Estates, Illinois, losing money for years, has man and CEO of Sears
support functions globally, been closing stores, selling Holdings, said in a state-
certain field operations po- locations and putting some ment. “We remain focused
sitions and jobs related to of its famous brands up for on realigning our business
store closures. sale. model in an evolving and
The eliminated jobs repre- The company is reportedly highly competitive retail
sent less than half a per- closing an additional 66 environment. q