By Michael Dabaie

 

Square Inc. shares were up 4%, to $251.71, in Tuesday afternoon trading.

The company after the market close Monday said its industrial bank, Square Financial Services, has begun operations after completing the charter approval process with the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions.

Square Financial Services is an independently governed subsidiary of Square that will offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital's existing lending product.

"Bringing banking capability in-house enables us to operate more nimbly, which will serve Square and our customers as we continue the work to create financial tools that serve the underserved," said Square Chief Financial Officer Amrita Ahuja.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

March 02, 2021 15:05 ET (20:05 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.