Square Just Opened a Bank — What Does this Mean for its Stock?

Officially named Square Financial Services, the fintech company will make small loans to small businesses -- exactly who Square already targets.

In this video, I will be talking about Square‘s big announcement on Monday which is…they’ve finally opened a bank!

Officially named Square Financial Services (industrial bank), which essentially means a finance company that makes small loans to small businesses, which is exactly who Square targets. Square’s mission is to give everyone economic empowerment and serve those that are underserved and unbanked.

In my opinion, this is going to boost the seller side of Square which will eventually lead to the adoption of more products inside the Square ecosystem (primarily Cash App’s offerings). After a rather OK earnings report, this certainly is a step in the right direction for the fintech company.

 

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