Digital payments company Square will be starting its own bank by 2021. The company has received approvals from Federal and state bodies.
The U.S. Federal Deposit Insurance Corporation Board (FDIC) granted Square conditional approval on a bank charter, for its Square Financial Services. The company has also gotten approval from the Utah Department of Financial Institutions.
Speaking on the development, the Executive Chairwoman of the board of directors for Square Financial Services Jacqueline Reses, says the project will be a good way to connect more people to financial services:
“We appreciate the FDIC’s thoughtful approach to our application, and their recognition that Square Capital is uniquely positioned to build a bridge between the financial system and the underserved. We’re now focused on the work ahead to buildout Square Financial Services and open our bank to small business customers.”
The company will be a subsidiary of Square, Inc. but will handle operations independently. The press release says that the firm’s main purpose is to offer financial support in the form of business loans, to small businesses.
With this new development, Square is well on its way to cementing itself as a major financial company.
Square is still pushing forward with crypto and received a patent in January for a new payment processing system.