Jack Dorsey, the CEO of both Twitter and Square, tweeted today that the "Bank now open." What he's referring to is that now, about a year after receiving FDIC approval, Square Financial Services has begun operations. Operating as a subsidiary of Square, which also owns the Cash app and handles payments for many merchants, the bank unit is working on providing financing for Square sellers in the US.
As TechCrunch notes, Square's fintech ambitions have expanded in recent years to include extending credit for entrepreneurs and small businesses, which now will happen primarily through its own bank. In a statement, Square CFO Amrita Ahuja said "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."