Square, the financial payments firm started by Twitter’s Jack Dorsey, announced last week that it has launched a long-anticipated, in-house bank. Square says the bank will allow it to “operate more nimbly in an increasingly crowded financial-tech (fintech) market.”
Square Financial Services began operations after completing a long charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.
Named Square Financial Services, the bank will operate as an independently governed subsidiary of Square Inc.
The bank will be be based in Salt Lake City and will provide business loans and deposit products to sellers who use its card reader and other point-of-sale services.
Fintech companies typically partner with third-party banks to service products such as small-business loans. Moving forward, Square Financial Services will be the primary provider of financing for Square sellers across the U.S.
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