San Francisco-based payments processor Square has reportedly withdrawn its regulatory application to open a deposit-taking bank.
However, the company plans to refile its application, with its withdrawal due to procedural issues according to a report by Reuters. Square is yet to provide an anticipated time frame for reapplying with the FDIC, with a spokesperson not responding to a request for comment.
In a statement released to Reuters Friday, Square said: “We have been engaged in constructive dialogue with the FDIC, and our decision to withdraw and refile was a procedural step in the review process that will allow us to amend and strengthen some areas of our FDIC insurance application. We continue to work closely with the FDIC and Utah DFI on our applications.”
Last year, The FinTech applied with the Federal Deposit Insurance Corp (FDIC) for an industrial loan company (ILC) license that, if granted, allows nontraditional financial firms to collect government-insured deposits. Its separate ILC charter application with the State of Utah Department of Financial Institutions remains active.
Founded in 2014, Square enables retailers to accept all major cards, whether they’re chip and PIN or contactless. Users can take payments in person, over the phone, via invoice or online, with the company’s tools including real time analytics and inventory and location management. Having its own banking license would allow Square to operate without its current banking partner Celtic Bank.
Earlier this year, BABB (Bank Account Based Blockchain) raised its $20m goal for its token sale as it looks to receive a UK banking license. London-headquartered BAAB is developing a decentralised banking platform which offers a bank account, payment card, and access to a P2P network, and is eyeing a UK banking license by the end of Q4.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
