Square's bank arm launches as fintech aims 'to operate more nimbly'

Known for its innovations in the payments sector, Square officially now has a bank.

Nearly one year after receiving conditional approval, Square said Monday afternoon that its industrial bank, Square Financial Services, has begun operations. Square Financial Services completed the charter approval process with the FDIC and Utah Department of Financial Institutions, meaning it’s ready for business.

The bank, which is headquartered in Salt Lake City, Utah, will offer business loan and deposit products, starting with underwriting, and originating business loans for Square Capital’s existing lending product.

Historically, Square has been known for its card reader and point-of-sale payment system, used largely by small businesses — but it has also begun facilitating credit for the entrepreneurs and smalls businesses that have used its products in recent years.

Moving forward, Square said its bank will be the “primary provider of financing for Square sellers across the U.S.”

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Source: Square’s bank arm launches as fintech aims ‘to operate more nimbly’