Square begins banking operations under its new charter via Square Financial Services, a subsidiary of Square, Inc.
The company that began with the easy-to-recognize credit card swipers attached to smart phones has continued its expansion into other financial services by officially becoming a bank.
Square created a subsidiary, Square Financial Services, and began bank operations once its charter was approved with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.
According to Square's press release, the new subsidiary's primary purpose will be "to offer business loan and deposit products."
Read the 3/1/2021 Press Release in Full: Square Financial Services Begins Banking Operations
With a market capitalization that has exceeded $100B in 2021 already, Square immediately takes a place in the top 10, making it a formidable competitor.
With solutions for payments, inventory, payroll and loans already, it will be interesting to see what further innovations are around the corner for the company.
“Bringing banking capability in-house enables us to operate more nimbly, which will serve Square and our customers as we continue the work to create financial tools that serve the underserved,” said Amrita Ahuja, Square, Inc. Chief Financial Officer and Executive Chairwoman of the board of directors for Square Financial Services.
Traditional financial institutions that are looking to be the best financial problem-solvers for their small business clients would be wise to keep an eye on Square going forward.
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