Social Capital Hedosophia Holdings Corp V (NYSE:IPOE) is a special purpose acquisition company (SPAC) that will merge with SoFi, a California-based online bank and brokerage, in the coming quarter of this year.
SoFI is an online bank who had recently purchased Golden Pacific bank on March 9 for about $150 million. This deal must be approved by the Office of the Comptroller of the Currency and the Federal Reserve. If approved, SoFi can become a national bank, which could take direct deposits and make loans based on their deposits rather than acting as a re-seller. This is a good deal after the merger. Recently, SoFi has announced it will offer credit cards and auto loans. SoFi has a brokerage that competes with Robinhood and has a payment processor named Galileo.
Therefore, investors should purchase IPOE before the merger with SoFi. Once the merger happens, this stock will rise as revenue will be growing year over year.