#BankTech #FinTech / Everyone Wants To Be A Bank

And now, Square also has a bank. (And, yes, Tidal; more on that here.) The company finally got a charter approved for Square Financial Services, which will be "the primary provider of financing for Square sellers across the U.S."

It highlights the big trend of fintechs applying for or buying bank charters that allow them to directly offer the many services that banks do.

[Peter Renton, co-founder and chairman of LendIt:] "Fintech and banking are converging… There will be a time in the near future when there will be little distinction between banks and fintech companies… The future of fintech is in banking. And the future of banking is in fintech."

With a bank charter, fintechs can cross-sell different products, and not rely on one line of business…

Charters are of course just one approach, and PayPal appears to be trying something different. The company says it wants to build a "super app" providing a range of payments, shopping and financial services through its app.

… But the view on banks and charters seems to be solidifying: … the future of banking does increasingly look like fintech, and vice versa.

https://www.protocol.com/newsletters/protocol-fintech/bank-charter-square