Square Inc. is a merchant services aggregator that aims to simply commerce by leveraging technology. Recently, the company has announced to begin its banking operations after taking due charter approval from the Utah Department of Financial Institutions and FDIC i.e., Federal Deposit Insurance Corporation.
According to the company profile, Square Inc. is known to build tools and services that empower businesses and individual entrepreneurs to participate in the economy. Seller businesses such as merchants and retailers use this service to reach out to buyers online and in-person. Also, this app enables sellers to manage their retail business and access financing within the businesses.
On the other hand, individual users use Square Inc.’s Cash App to carry out their everyday expenditures, send money, receive money, store money and even invest money.
Square Financial Services is a Salt Lake, Utah-based independently governed subsidiary of Square Inc. The company’s financial services will be the primary provider of all kinds of financial services to Square Inc.’s sellers across the United States of America. The company is intended to offer business loans and deposit products that begin with operational business loans as involved with Square Capital’s existing lending product portfolio.
The managerial corporate team at Square Financial Services include Lewis Goodwin as the Chief Executive Officer, Brandon Soto as the CFO, Sharad Bhaskar as the Chief Risk Officer, Jessica Jiang as the Capital Markets and Investor Relations Leader, Hoomam Maalouf as the Chief Credit Officer, Samantha Ku as the Chief Operating Officer and David Grodsky as the Chief Compliance Officer.
As mentioned on the company website, Square Financial Services will affirmatively benefit Square Inc.’s ability to expand businesses’ and individual’s access to banking tools and loans to underserved populations in the US. The report mentions that over 58% loans through Square Capital before the inception of Square Financial Services go to women-owned businesses compared to 35% that go to minority-owned businesses compared to 27% of traditional loans.
Square Financial Services will look forward and continue to sell loans and provide other banking tools to third-party investors and limit exposure to the balance sheets of the company. The company further mentions in its profile that it certainly does not expect the banks to have a material impact on Square Capital’s consolidated balance sheets, gross profits, total net revenue or EBITDA in Financial Year 2021.
Square Inc. has operational offices in the United Kingdoms, United States, Japan, Canada, Ireland, Australia and Spain.