Block gets FDIC approval to lend directly to Cash App consumers

The news: Block-owned Cash App can now finance its Cash App Borrow loans directly to consumers through Square Financial Services, per a press release.

The FDIC approval means Block no longer has to rely on Utah-based First Electronic Bank to originate and issue loans.

How we got here: Block’s focus for the last year has been what it calls “banking our base.” CEO Jack Dorsey wants to turn the 54.9 people we forecast will use Cash App this year into users who take advantage of Block’s full suite of consumer banking products.