Square will create an industrial bank

An American technology company developing electronic payment acceptance and processing solutions, Square, will open an industrial bank next year. The relevant application has been approved by the board of directors of the Federal Deposit Insurance Corporation (FDIC).

In particular, the new institution – Square Financial Services, Inc. will issue commercial loans to users who make transactions with cards through the Square payment system. Such loans can only be obtained if seven requirements are met, including, for example, the client’s financial history, the adequacy of the institution’s capital structure, business development prospects, and whether the institution’s corporate powers are consistent with the objectives of the Federal Insurance Law.

Currently Square Financial Services, Inc. pending approval by the Utah Department of Financial Institutions regarding its application.