Many of the arguments in this debate have less to do with the applicants’ qualifications than with traditional banks’ fear of new, innovative competitors.
Company is third fintech firm in the past few months to seek its own bank charter; vice chair’s departure gives Trump four vacancies to fill on the Federal Reserve Board.
The company's application, which is expected to be announced as early as Thursday, comes after online lender SoFi applied in June for an industrial loan company. The bank is expected to be led by a former Green Dot executive.
The $2.6 trillion-asset bank's recent commitment to digital lending augurs the development of a two-tier market for borrowers who want fast access to cash.
Though statistically women have trouble getting small business loans, Square's granting more than half its loans to women; latest numbers show only one in four bank senior execs are female.
