On Thursday, March 13, Block announced that its subsidiary, Square Financial Services (SFS), had secured approval from the Federal Deposit Insurance Corporation (FDIC) to launch Cash App Borrow, a consumer loan product. This marks a significant step as SFS will take over nationwide servicing and origination of these loans from Block's previous external bank partner. The new service offers small, short-term loans accessible within the Cash App platform. With nearly $9 billion in loans originated in 2024 through an external partner and a historical loss rate under 3%, this product demonstrates strong demand for micro-lending services. Additionally, SFS continues offering business loans and interest-bearing savings accounts.

In a strategic move aimed at expanding access to financial services, Block's COO and CFO, Amrita Ahuja, emphasized the importance of SFS in delivering economic opportunities to underserved consumers and businesses. By leveraging proven underwriting mechanisms, SFS provides clear pathways to cash flow management. The company has set ambitious goals, aiming to position Cash App as the leading provider of banking services for U.S. households earning up to $150,000 annually.

As part of its ongoing evolution, Block is increasingly focusing on traditional banking offerings. During a February earnings call, executives highlighted Cash App’s expanded features, such as high-yield savings, paycheck allocation to investments, and free tax filing. These enhancements reflect the company's commitment to transforming how individuals interact with their finances. Furthermore, the success of Cash App Borrow underscores the growing demand for micro-lending solutions tailored to everyday consumers.

The integration of SFS into Block's operations represents a pivotal moment in the company's journey. By assuming direct responsibility for consumer loans, Block aims to enhance efficiency and streamline processes. This transition aligns with the broader vision of democratizing access to financial tools and services. As the company continues to push boundaries in the banking sector, it positions itself as a leader in innovative financial technology, catering to both businesses and individual consumers alike.

With the FDIC's approval, Block embarks on a new chapter in its mission to reshape the financial landscape. By empowering consumers and businesses through accessible lending options and advanced banking features, the company reinforces its commitment to fostering economic growth and inclusivity. Through strategic initiatives like Cash App Borrow and continued innovation in financial services, Block sets the stage for a future where traditional barriers to banking are dismantled, paving the way for greater financial accessibility and empowerment.