San Francisco-based Square, which offers card readers and a payments app, has confirmed to CU Times that is has filed an application for an industrial loan charter with the FDIC. 

The company is the latest in a string of fintechs to make the move toward bank status. Lending fintech SoFi and mobile-banking personal finance startup Varo Money have also applied for bank charters recently. Those companies are also based in San Francisco.

“The primary purpose of the bank will be to offer business loans to small businesses, similar to the existing business of Square Capital, and to offer deposit products,” a company spokesperson told CU Times. Square’s average loan size is $6,000, and the company said it is often a substitute for business loans from friends and family rather than banks.

Brian Kaas, who is managing director at CUNA Mutual Group’s venture capital arm, CMFG Ventures, said credit unions can’t ignore the bigger issue at hand.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Tina Orem

Dig Deeper

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.