Square Inc., the financial tech company has reportedly received a green signal to open its own bank in Utah. The report comes in a wake of conditional approval for banking license provided by the US’s Federal and State banking regulator.
The reports spread on Wednesday, March 18, noting that the U.S. Federal Deposit Insurance Corporation (FDIC) has approved the application filed by Square Inc to open its own bank. Accordingly, the giant will likely launch its bank, ‘Square Financial Services, Inc., in 2021. The bank will be supervised by FDIC along with the Utah Department of Financial Institutions.
Led by bitcoin advocate, Jack Dorsey, Square’s new bank ‘Square Financial Services’ will be spearhead by Lewis Goodwin as CEO and Brandon Soto as its CFO. Both Lewis and Brandon carries years of experience in the banking industry.
Noticeably, the license is known as “Industrial Loan Company” License which is generally granted to newly chartered banks that will be operated under the supervision standards.
Following this, the bank is expected to offer small-business loans to merchants that process payment using Square devices. The giant’s capital lead Jacqueline Reses said in an official announcement that they are now moving towards ‘building out Square Financial Services and making their bank accessible to small business customers”, adding that;
“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,”
FDIC’s insurance license means that the depositor is rest assured to receive insurance cover of up to the $25000 limit in case if something goes wrong with the bank.
Besides, Square is also cheering on another exciting news as the firm has got a green signal for charter from the Utah Department of Financial Institutions. Accordingly, the new bank is headquartered in Salt Lake City, Utah.