Square launched an in-house bank that it says will allow it to "operate more nimbly" in an increasingly crowded fintech market. The firm announced Monday that the bank has begun operations after completing the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions. It will operate as an independently governed subsidiary of Square Inc (SQ), and will provide business loans and deposit products to sellers who use its card reader and other point-of-sale services.
Unlike a traditional bank that must rely on a business' report of its performance, payment service providers "have a constant, near-real-time view into the business performance and perhaps the entirety of their revenue stream," Ford said. "As far as managing risk, they have a constant pulse check on how the business is doing."
https://www.cnn.com/2021/03/02/tech/square-bank-business-lending/index.html