Square Inc. Is Expanding Into Banking -- Here's Why

Square (NYSE: SQ) has expanded far beyond its roots, when its business primarily consisted of transaction fees from payments on its small, white mobile card reader. It has launched numerous point-of-sale systems, peer-to-peer payments, working capital loans through Square Capital, customer relationship management (CRM) tools, payroll services, and more.

But Square's "flywheel" expansion isn't over yet. The financial-technology (fintech) company is submitting an application to form a wholly owned bank, The Wall Street Journal reported this week. Here's why investors should pay attention to this move.

Image source: Square.

Source: Fool.com