Square’s Bank Is Open For Business – Now What?
Square gets a bank – and so, now what? It may be the case that the proverbial floodgates have opened for FinTechs to leverage what we might think of as the “industrial bank” operating model, in order to meld digital-first operations with traditional banking services.
As noted earlier this week, Square’s state-chartered industrial bank, Square Financial Services, is up and running in Utah. That financial services arm will offer banking services such as deposits, according to releases. The initial forays will focus on servicing the company’s network of small businesses that are already operating on Square’s payment processing platform.
This is the 16th FDIC-insured industrial bank operating in Utah. And it’s the second de novo industrial bank operating in the state, according to a Square release emailed this week to PYMNTS.