Payservices, a money transfer company in Delray Beach, Fla., is applying to form a digital bank.
The company applied last week with the Federal Deposit Insurance Corp. for deposit insurance. It also plans to pursue a state banking charter.
Payservices, which opened in 2016 and is run by Lionel Danenberg, said in the FDIC filing that it does not plan to offer interest for deposits, and there are no plans to underwrite any loans, mortgages or insurance products.
While the company isn't expected to have physical branches, it plans to lease office space in South Florida before the bank begins operations.
The company’s plan for raising capital, included the targeted amount, were largely redacted in the copy provided by the FDIC, though insiders will own about 83% of the stock.
Payservices “is already familiar with the Bank Secrecy Act and the Anti-Money Laundering regulations and requirements due to its existing money transfer license and has the ability and intention to continue to operate in compliance with those requirements,” the FDIC application said.
Efforts to reach Payservices were unsuccessful.
