time to read 1 minutes

Square is now a full-on bankINTL

Square is now a full-on bank

In case you missed it (which is why we’re here to tell you all about it), Square Inc. is now a fully-fledged bank. The FinTech company, which is known for bringing innovation to the payments sector (like its super portable card reader), will offer business loans and deposit products through its new lender status. Square Financial Services, headquartered in Salt Lake City, has now begun operations.

Companies operating in the FinTech realm offer typically unbanked communities alternatives to conventional banking services. With the new license, Square will be able to massively expand its services and grow its customer base of mostly small businesses.

why it matters
FinTechs becoming full-on banks is not necessarily a newfound trend (take Brex, for example). Square’s new license will allow it to compete with other online lenders (like Monzo, Starling Bank, and Chime, as well), and increase its competitive position in the payments space, its current industry (watch out, Stripe and Paydiant).