In 2017, the fintech company applied with the Federal Deposit Insurance Corporation (FDIC) for a special industrial loan company (ILC) licence that, if granted, allows nontraditional financial companies to collect government-insured deposits.
According to the copany, they have been engaged in constructive dialogue with the FDIC, and their decision to withdraw and refile was a procedural step in the review process that will allow them to amend and strengthen some areas of their FDIC insurance application.
The company said its separate ILC charter application with the State of Utah Department of Financial Institutions remains active.
Square did not provide an anticipated timeframe for reapplying with the FDIC.
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