Payment company Square Inc (NYSE:SQ) announced on Monday its industrial bank, Square Financial Services, has begun operations after completing the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.
According to Square, Square Financial Services is an independently governed subsidiary of Square, Inc. Headquartered in Salt Lake City, Utah, its primary purpose will be to offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital’s existing lending product. Square Financial Services will also be the primary provider of financing for Square sellers across the U.S.
While sharing details about the services, Amrita Ahuja, Square, Inc. CFO and Executive Chairwoman of the Board of Directors for Square Financial Services, stated:
“Bringing banking capability in-house enables us to operate more nimbly, which will serve Square and our customers as we continue the work to create financial tools that serve the underserved. 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.”
Joining previously announced CEO Lewis Goodwin and CFO Brandon Soto to the Square Financial Services executive team are:
- Sharad Bhasker, Chief Risk Officer
- Samantha Ku, Chief Operating Officer
- Homam Maalouf, Chief Credit Officer
- David Grodsky, Chief Compliance Officer
- Jessica Jiang, Capital Markets and Investor Relations Lead
Square went on to add that Square Financial Services will continue to sell loans to third-party investors and limit balance sheet exposure. We do not expect the bank to have a material impact on Square’s consolidated balance sheet, total net revenue, gross profit, or Adjusted EBITDA in 2021.