In this photo illustration, the logo for US technology company Block is reflected in 03, 2023 in London, England, March 3, 2023 in a number of digital screens.
Leon Neal | Getty pictures
Shares and income growth of more than 30% this year, slowing down, Jack Dorsey’s Block goes bigger when giving credit.
The company told that on Thursday Provided confirmed The bank subsidiary from the Federal Savings Insurance Corporation allows loans through square financial services, but to offer small dollar consumption loans, rather than trusting foreign bank partners.
This is the expansion of the company’s short-term credit product. However, the increase in growing concerns around this consumer loan, the extensive tariffs of President Trump and the widespread government work is due to the discussion of the potential decline.
In the credit segment of the block, the operating loss is risky, small, small dollar loans that claim that the company’s underwriting model is strong in the last quarter.
“Cash app is designed to provide short-term cash flow in a short and accessible way, as expensive and difficult for consumers to navigate debt, alternatives,” the press release. The company added that the loan of the average cash application is $ 100 and about a month in the period.
The block did not comment immediately.
While approving the credit work outside its bank, the block says the country can offer a nationwide product.
The bloc last month, a total of 4.5% of the 4.5% of profitable wall prospectus reported the quarterly consequences. The stock has fallen in 18%, the worst day since 2020.
At the same time, the block was rolled by the next point, buy now, pay the cash application card, pay the next product. The General Financial Officer Amrita Ahuja told CNBC that customers are aimed at informing customers as more credit options and bank alternatives for some customers. Blocked Afterpay Faced ApproveTo $ 29 billion At the beginning of 2022.
In addition, this week, the block announced a large investment plan in artificial intelligence.
Company gossip Wednesday will be posted Nvidia AI systems, open source AI research with the latest Blackwell plugs. The bloc did not say how he wanted to achieve the AI ​​building, but noted the press release, “the novel solutions for our customers will begin to investigate.”
Divide: After earnings, block shares are reduced
