Square square financial fdicann
Square square financial fdicann, a financial technology company, has recently announced the launch of Square Financial Services, a subsidiary of Square Inc. The new entity has been granted a charter by the Federal Deposit Insurance Corporation (FDIC) to operate as a de novo industrial bank in Utah. This move will enable Square to offer loans and deposit products to small businesses.
Square Financial Services:
Square Financial Services will be able to offer loans and deposit products to small businesses that use Square for payment processing. The company aims to provide accessible and affordable financial services to small businesses that have been underserved by traditional banks. The new entity will also be able to participate in the Federal Reserve’s payment system. Which will allow it to offer faster payment processing and settlement services. Square has been offering loans to small businesses through its lending arm, Square Capital, since 2014.
However, the loans were funded by Celtic Bank, a Utah-chartered industrial bank. With the launch of Square Financial Services, Square will now be able to fund its own loans and offer deposit products. The move to launch Square Financial Services comes at a time when small businesses are struggling due to the COVID-19 pandemic. Many small businesses have also been forced to shut down or reduce their operations, leading to a decline in revenue. Square Financial Services aims to provide much-needed financial support to these businesses.
The launch of Square Financial Services is also significant step for Square as it expands its offerings beyond payment processing. The new entity will enable Square to offer loans and deposit products to small businesses. Which will help them navigate through these challenging times. With the FDIC charter, Square Financial Services will be able to operate. As a de novo industrial bank and participate in the Federal Reserve’s payment system. This move will allow Square to provide faster payment processing and settlement services. Which will benefit both small businesses and consumers.