Square Inc. announced its industrial bank, Square Financial Services, has begun operations, on March 1st, 2021. The announcement comes nearly one year after FDIC approved the payment company for an industrial charter license.
Square Financial Services will be an independently governed subsidiary of Square Inc. and will serve SMB businesses only.
“Its primary purpose will be to offer business loan and deposit products,” Square Inc. wrote in their press release. “Beginning with underwriting and originating business loans for Square Capital’s existing lending product.”
Square Financial Services will provide customers with FDIC-insured deposits. The payment platform has been trying to open its own banking entity for nearly four years now.
“Loans will remain available only to…