Square square financial fdicann azevedotechcrunch
Square square financial fdicann azevedotechcrunch, the payment processing company, has received approval from the Federal Deposit Insurance Corporation (FDIC) for its bank charter application. The new bank, called Square Financial Services, will be based in Utah and will offer small business loans and deposit products to Square’s existing customer base. This move is a significant step for Square, as it will allow the company to expand its financial services offerings beyond its current capabilities. With a bank charter, Square will be able to offer loans and deposit products directly to its customers, rather than relying on partnerships with other banks.
The benefits of a bank charter
Obtaining a bank charter comes with several benefits for Square. First, it will allow the company to offer loans and deposit products directly to its customers, which will increase revenue and help Square compete with other financial services companies. Second, having a bank charter will give Square more control over its financial services offerings. Currently, Square partners with other banks to offer loans and deposit products. With a bank charter, Square will be able to set its own interest rates and terms for loans and deposits. Finally, having a bank charter will give Square more regulatory oversight. As a bank, Square will be subject to strict regulations and oversight from the FDIC and other regulatory bodies. This will help ensure that Square’s financial services offerings are safe and secure for its customers.
What this means for Square’s customers
For Square’s existing customers, the new bank charter means that they will have access to a wider range of financial services products. This includes small business loans and deposit products that are tailored to their needs. In addition, customers can expect a seamless experience when using Square’s financial services products. Since Square will be able to offer these products directly. Customers will be able to manage their finances within the same platform they use for payment processing.
Conclusion
Overall, Square’s new bank charter is a significant development for the company and its customers. With the ability to offer loans and deposit products directly. Square will be able to expand its financial services offerings and compete with other financial services companies. For customers, this means access to a wider range of financial services products within the same platform they already use for payment processing.
