US payments processing company Square is set to reapply for a banking licence, months after it withdrew its first application.
The payment company, led by Twitter chief executive Jack Dorsey, will re-file its application with the state and federal regulators to create a bank in Utah.
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It will apply for a special industrial loan company (ILC) licence with the Federal Deposit Insurance (FDIC), reported Reuters.
The licence will allow Square to collect government-insured deposits.
Square bank licence application: Background
In September 2017, Square first applied for the licence, but it withdrew its application in July this year.
After withdrawing, the company revised its application and addressed key questions raised in the earlier bid in consultation with the regulators, a Square spokesperson told the news agency.
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By GlobalDataThe spokesperson added that certain sections of the application have been improved including naming additional officers.
It has also provided additional documentation and information on the prospective bank’s infrastructure, governance and services.
The Wall Street Journal first reported about the firm’s intention to re-apply for the banking licence. The move is a part of Square’s effort to diversify its business and foray in providing key banking services.
If approved, the new banking unit will be called Square Financial Services. It will offer deposit and loan services.
Currently, Square offers loans to small businesses in collaboration with a bank.
