- Jack Dorsey’s Square has launched a banking arm to “operate more nimbly.”
- Utah-based Square Financial Services aims to offer business loans and deposit products.
- The bank will first underwrite and originate loans taken out by Square’s existing sellers.
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Digital payments processor Square said on Monday it has launched in-house banking operations after completing the approval process with a US insurance agency and Utah’s financial regulator.
Square Financial Services, the industrial bank based in Utah’s Salt Lake City, is now ready for business after receiving conditional approval nearly a year ago.
“Moving forward, Square Financial Services will be the primary provider of financing for Square sellers across the US,” the company said in a statement.
The first few actions for the bank will include underwriting and offering business loans for Square’s existing lending product. Its primary purpose is to offer business loans and deposit products.
“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,” Square CFO Amrita Ahuja said.
Square is headed by longtime cryptocurrency advocate Jack Dorsey, who is also chief executive of social media platform Twitter. With a product line that includes the Cash App and Square Point-of-Sale, the company is known for its easy-to-use mobile payment services.
Shares in the company rose 3% to $248.80 in pre-market trading on Tuesday.