The Federal Deposit Insurance Corp. (FDIC) has granted conditional approval to an application by the fintech Square for deposit insurance related to its Industrial Loan Company (ILC) bank charter for Square Financial Services.
The San Francisco-based Square, which also received charter approval from the Utah Department of Financial Institutions, is expected to launch its bank next year. The new bank will be based in Salt Lake City and support Square Capital’s commercial lending business and to offer deposit products.
“We appreciate the FDIC’s thoughtful approach to our application and their recognition that Square Capital is uniquely positioned to build a bridge between the financial system and the underserved,” said Jacqueline Reses, executive chairwoman of the board for Square Financial Services. “We’re now focused on the work ahead to buildout Square Financial Services and open our bank to small business customers.”