Highlights of the Week

Block, Inc. secures FDIC approval for Square Financial Services to offer in-house Cash App Borrow loans after nearly $9B in 2024 originations. Cash App debuts its bold “Cash In” campaign, spotlighting smarter banking and features like Cash App Afterpay to engage Gen Z. Augie disrupts credit building with a fee-free, deposit-free virtual charge card that reports subscription payments, intensifying competition for traditional banks. Bolt's CEO Ryan Breslow defends his $30M personal loan while unveiling plans for a “super app” that bundles a range of financial services, even as monetization questions loom over its 80 million wallets. Meanwhile, Varo Bank bets on AI and machine learning to boost profitability, and OakNorth accelerates its U.S. expansion by acquiring Community Unity Bank.

Square Receives FDIC Approval to Offer Consumer Loan Product

Block, Inc. just got the green light from the FDIC for Square Financial Services to offer Cash App Borrow nationwide, bringing small, short-term loans directly to consumers. Previously available through an external bank partner, the product saw nearly $9 billion in originations in 2024, with most loans under $100 and repaid within a month—far cheaper than payday loans. Square Financial Services, already known for providing loans and savings options to businesses, will now handle Cash App Borrow loans in-house, gradually ramping up volumes in the coming quarters. [Block, Inc.]

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Cash App Launches National Brand Campaign Inviting Customers to "Cash In" on Better Banking and Savvier Spending

Cash App is making a big splash with its largest marketing campaign, “Cash In,” aiming to position itself as a go-to financial platform. Directed by Emmy-nominated Ramy Youssef, the ad series highlights how Cash App users can manage money smarter—whether it’s auto-investing paychecks or using free overdraft coverage. The campaign also promotes Cash App Afterpay, which lets eligible customers pay over time, a feature resonating with Gen Z. With 25 million active Cash App Card users and a growing banking suite, Cash App is doubling down on its “bank our base” strategy to keep customers engaged. [Business Wire] [Cash App]

A new 'introductory' card boosts competition for banks

GetAugie is shaking up the credit-building space with a new virtual charge card that acts like a debit card but helps users build credit by reporting subscription payments to major bureaus. Unlike secured credit cards, Augie requires no deposit, no annual fee, and no interest—just whatever is in the user’s bank account. The fintech, which is targeting young adults and new immigrants, is betting that easy access and no credit checks will make it a go-to option for those struggling to enter the financial system. With banks eyeing the growing demand for credit-building tools, Augie’s entry adds more pressure for traditional players to innovate. [American Banker]

Bolt CEO Ryan Breslow explains his troubled $30M personal loan, announces new ‘super app’

Bolt CEO Ryan Breslow, back in the driver’s seat after a turbulent exit, is defending his controversial $30 million personal loan while announcing bold plans for a new “super app.” Speaking at Fintech Meetup, Breslow called the loan an act of loyalty, insisting he took it instead of selling stock and expected to repay it after an IPO. Now, he's focused on Bolt’s next evolution, promising, “Instead of one-click checkout, we’re going to have one-click everything: financial services, peer-to-peer, crypto, cards, financial products, all in one app.” While Bolt boasts 80 million wallets, it has yet to monetize them, raising questions about its financial future. [TechCrunch]

Varo to leverage AI, machine learning in profitability push

Varo Bank is betting on artificial intelligence and machine learning to drive profitability, with incoming CEO Gavin Michael focusing on tech-powered underwriting, fraud prevention, and personalized customer experiences. The neobank, which grew revenue 22% in 2024 but remained unprofitable, recently secured $55 million in funding and aims to refine its existing banking and lending products rather than expand into new categories. Michael, who previously took Bakkt public, hinted at keeping "all options on the table" for Varo’s future, but for now, the focus is scaling efficiently. "The next stage is scaling and just taking the business to the next level, achieving profitability," he said. [Banking Dive]

OakNorth set to acquire Michigan’s Community Unity Bank to fuel US expansion plans

OakNorth is making a big move in the U.S., agreeing to acquire Michigan-based Community Unity Bank (CUB) in a stock-for-stock deal aimed at accelerating its expansion. CUB, a full-service community bank, will serve as a foundation for OakNorth’s U.S. growth, with its CEO, Greg Wernette, set to lead OakNorth’s American banking division. The UK-based challenger bank, which entered the U.S. market in 2023 and has already distributed over $700 million in loans, sees this acquisition as a way to “fill the funding gap” left by the collapse of several mid-market-focused U.S. banks. The deal is pending regulatory approval.