Block bets on lending expansion after stock slump
Summary
In this photo illustration, the logo for the US tech firm "Block" is displayed and reflected in a number of digital screens on March 03, 2023 in London, England. The company on Thursday said it secured approval from the Federal Deposit Insurance Corporation to originate loans through its banking subsidiary, Square Financial Services, allowing it to offer small-dollar consumer loans directly rather than relying on external banking partners. But it comes at a time of increased concerns surrounding consumer credit, with President Trumps expansive tariffs and widespread government job cuts raising talk of a potential recession. Last month, Block reported quarterly results that missed Wall Street expectations, with revenue growing just 4.5% from a year earlier. Block didnt say what specifically its looking to achieve through its AI buildout, but noted in the press release that it will "start exploring novel solutions for our customers."