Square is one step closer to launching its bank in 2021 after the Federal Deposit Insurance Corporation (FDIC) board voted to conditionally approve the FinTech’s application for deposit insurance for its Industrial Loan Company bank charter.
The Utah Department of Financial Institutions also gave Square its received charter approval.
The bank Square Financial Services is expected to launch in 2021 and will operate independently, as a direct subsidiary of Square. Its primary purpose will be to offer small business loans for Square Capital’s commercial lending business, and to offer deposit products.
“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,” said Jacqueline Reses, capital lead and executive chairwoman of the board of directors for Square Financial Services. “We’re now focused on the work ahead to buildout Square Financial Services and open our bank to small business customers.”
Square Financial Services CEO Lewis Goodwin and CFO Brandon Soto will lead the bank’s executive team. The bank will be headquartered in Salt Lake City, Utah.
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