San Diego’s largest fintech company receives $5 million state tax credit
ServiceEconomic Incentive Consulting
Some of San Diego’s most innovative and successful companies have deployed novel technologies to transform industries. Axos Bank, one of San Diego’s best kept secrets has rapidly grown to become the largest bank founded and headquartered in the State of California.
Since 2013, San Diego Regional EDC has provided complimentary support to more than 30 businesses, including Axos, to receive the California Competes Tax Credit, a discretionary income tax credit available to businesses that want to grow in California. Although San Diego represents eight percent of the state’s population, it has secured 14 percent of the credits awarded since the program’s inception.
A publicly-traded company, Axos was receiving pressure has mounted from its board and investors to reduce costs, pushing the company to explore moving headquarters operations outside of California.
EDC staff, alongside GO-Biz and the City of San Diego, briefed Axos leadership on the Cal Competes program and began working with its CFO and consultant to create a competitive and meaningful application. In order to help elevate the project’s competitiveness and tell the story of Axos as more than just a bank, EDC team members directly outreached to elected officials and senior Go-Biz staff to convey the importance of the project for both the company and the San Diego region.
In April 2018, Axos was awarded a $5 million tax credit to support the growth of an additional 160 jobs and more than $22,427,500 in capital investment to continue to maintain their headquarters operation in San Diego.
Axos Bank, founded by San Diego entrepreneurs with a vision to be the most innovative branchless bank in the United was established 17 years ago. Since then the company has grown its headquarters in UTC to over 600 employees managing $8.9 billion in asset savings and loan holding. They are continually ranked among the best performing Fintech stocks in the country.