Square Officially Becomes a Bank

Square launched its own industrial bank Monday, after receiving a charter from the FDIC. The Salt Lake City, Utah-based bank will begin underwriting business loans under the Square Financial Services title.

“Bringing banking capability in-house enables us to operate more nimbly,” CFO and Chair of the new bank Amrita Ahuja said, “which will serve Square and our customers as we continue the work to create financial tools that serve the underserved.”

Square had previously offered credit products through a partnership with Utah-based Celtic bank. The move answers the questions “buy or build” when it comes to fintech banking. Many fintech firms, some of who even claimed to be anti-bank alternatives, have made the switch to either partnering with a nationally chartered bank or outright becoming a bank themselves.

“We thank the FDIC and Utah DFI for their partnership enabling us to reach this milestone, and look forward to continuing to expand access to financial services at this critical time for small businesses,” Ahuja said.

Kevin Travers was a Reporter at deBanked.