Block bets on lending expansion after stock slump

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. With its stock down more than 30% this year and revenue growth slowing, Jack Dorsey's Block is going bigger in lending. 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. It's an expansion of Cash App Borrow, the company's short-term lending product. But it comes at a time of increased concerns surrounding consumer credit, with President Trump's expansive tariffs and widespread government job cuts raising talk of a potential recession. Transaction losses in Block's lending segment jumped 39% last quarter, and while the company claims its underwriting model is strong, small-dollar lending is inher ... Read full article.