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What Bank Does Cash App Use?

Published in Financial Technology 2 mins read

Cash App primarily partners with Lincoln Savings Bank and Sutton Bank to provide its core financial services. It is important to understand that Cash App itself is a financial technology company, not a bank.

Understanding Cash App's Bank Partnerships

Cash App operates as a financial platform that leverages established banking institutions to offer its services, such as facilitating deposits, withdrawals, and direct deposits. This model allows Cash App to provide convenient financial tools without holding a banking charter itself.

  • Lincoln Savings Bank: This Iowa-chartered bank is one of the primary partners enabling many of Cash App's features.
  • Sutton Bank: An Ohio-chartered bank, Sutton Bank also plays a crucial role in supporting Cash App's financial operations.

These partnerships ensure that funds held within Cash App accounts are typically FDIC-insured through the partner banks, providing a layer of security for users' money.

Beyond Banking: Cash App's Investment Services

In addition to its banking partnerships, Cash App also extends its services into the investment realm.

  • Cash App Investing LLC: For users interested in buying and selling stocks, Cash App provides these services through Cash App Investing LLC. This entity is a registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA), ensuring compliance with securities regulations.

This distinction is important because the banking services (like holding funds for spending) are handled by Lincoln Savings Bank and Sutton Bank, while investment activities are managed by a separate, regulated entity within the Cash App ecosystem.

How Cash App Works with Partner Banks

When you use Cash App, your funds are held in an account at one of their partner banks. This behind-the-scenes arrangement allows Cash App to offer features like:

  • Receiving direct deposits
  • Sending and receiving money
  • Using the Cash Card (a debit card)

This collaborative approach ensures that Cash App can offer a broad range of financial services while adhering to banking regulations through its licensed partners.