Core Insights - Block Inc. plans to significantly expand its lending business to enhance its credit services coverage after disappointing financial results have shaken investor confidence [1] - Since 2013, Block has issued over $100 billion in credit through various loan products globally [1] - The company aims to target "credit invisible" individuals, who lack sufficient credit history for traditional scoring [2] Lending Expansion - Block's Borrow product has issued nearly $15 billion in short-term credit to over 9 million active Cash App accounts since its launch in 2020 [1] - The Afterpay acquisition has allowed Block to provide short-term loans to over 20 million consumers [1] - Square Loans has financed over $22 billion for small businesses since its inception in 2013 [1] Credit Scoring and Risk Management - Block's credit risk model utilizes extensive data that is updated multiple times daily, contrasting with traditional credit scoring methods [1] - Approximately 70% of Cash App Borrow active users have credit scores below 580, yet the repayment rate exceeds 97% [2] - Block's approval rate for its risk model stands at 88%, compared to just 54% using traditional banking credit systems [2] Market Trends - There is a noticeable shift among millennials and Gen Z consumers from credit cards to online debit card platforms, creating opportunities for Block [3] - The lack of relevant data in traditional credit bureaus has left high-quality consumers inadequately scored [3]