- The comparison
- Mobile
- Square Gets Approval to Launch Banking Services, Including Small Business Loans
Digital payments company Square has obtained a conditional license to operate as a bank. The company, led by Twitter CEO Jack Dorsey, now aims to launch Square Financial Services by 2021. It will be set up as a subsidiary of Square, but will operate independently. Headquartered in Salt Lake City, Utah, Square Financial Services can offer small business loans and deposit products for SMBs.
Banking services
The approval came from the Federal Deposit Insurance Corp. and a charter approval from the financial institution's Utah department. “FDIC staff found that Square met each of the legal factors required for approval, subject to certain conditions. One of the conditions would require the proposed bank to maintain capital levels significantly higher than FDIC-insured banks," FDIC Chairman Jelena McWilliams said in a statement. Square Financial Services' management team will include Lewis Goodwin as CEO and Brandon Soto as CFO.Before Square, Varo Money gained FDIC approval to operate as a bank in recent weeks, while LendingClub broke through in the banking industry by acquiring Radius Bancorp for €185 million. Via: FDIC