How Block built a $200 billion credit operation by seeing customers traditional lenders can't - Tearsheet

"The credit system in the US was built on a fundamental assumption: that past borrowing behavior predicts future risk. That assumption has left roughly 100 million Americans essentially invisible to lenders."

"Block has built models that are both more accurate and more inclusive by underwriting from first-party signals native to the Cash App and Square ecosystems rather than relying on sparse bureau data."

"When Block launched Square Loans, it had one goal: get capital to small sellers who couldn't access it anywhere else. Micro sellers and SMBs with no business bureau file had no path to a loan."

The US credit system relies on past borrowing behavior, leaving 100 million Americans without proper credit scores. This exclusion creates barriers to accessing capital. Juan Hernandez at Block has developed lending products like Cash App Borrow and Square Loans to serve these underserved customers. By utilizing first-party data from their platforms, Block has created more accurate and inclusive underwriting models. The company has extended over $200 billion in credit globally, focusing on providing capital to small sellers and businesses that traditional models overlook.

Read at Tearsheet