One stock recently impacted by a whirlwind of volatility is Block—the fintech powerhouse behind Square, Cash App, Tidal Music, and more. The company’s COO and CFO, Amrita Ahuja, shares how her team is using new AI tools to find opportunity amid disruption and reach customers left behind by traditional financial systems. Ahuja also shares lessons from the video game industry and discusses Gen Z’s surprising approach to money management.

This is an abridged transcript of an interview from Rapid Responsehosted by Robert Safian, former editor-in-chief of Fast Company. From the team behind the Masters of Scale podcast, Rapid Response features candid conversations with today’s top business leaders navigating real-time challenges. Subscribe to Rapid Response wherever you get your podcasts to ensure you never miss an episode.

As a leader, when you’re looking at all of this volatility—the tariffs, consumer sentiment’s been unclear, the stock market’s been all over the place. You guys had a huge one-day drop in early May, and it quickly bounced back. How do you make sense of all these external factors?

Yeah, our focus is on what we can control. And ultimately, the thing that we are laser-focused on for our business is product velocity. How quickly can we start small with something, launch something for our customers, and then test and iterate and learn so that ultimately, that something that we’ve launched scales into an important product?

I’ll give you an example. Cash App Borrow, which is a product where our customers can get access to a line of credit, often $100, $200, that bridges them from paycheck to paycheck. We know so many Americans are living paycheck to paycheck. That’s a product that we launched about three years ago and have now scaled to serve 9 million actives with $15 billion in credit supply to our customers in a span of a couple short years.

The more we can be out testing and launching product at a pace, the more we know we are ultimately delivering value to our customers, and the right things will happen from a stock perspective.

Block is a financial services provider. You have Square, the point-of-sale system; the digital wallet Cash App, which you mentioned, which competes with Venmo and Robinhood; and a bunch of others. Then you’ve got the buy-now, pay-later leader Afterpay. You chair Square Financial Services, which is Block’s chartered bank. But you’ve said that in the fintech world, Block is only a little bit fin—that comparatively, it’s more tech. Can you explain what you mean by that?

What we think is unique about us is our ability as a technology company to completely change innovation in the space, such that we can help solve systemic issues across credit, payments, commerce, and banking. What that means ultimately is we use technologies like AI and machine learning and data science, and we use these technologies in a unique way, in a way that’s different from a traditional bank. We are able to underwrite those who are often frankly forgotten by the traditional financial ecosystems.

Our Square Loans product has almost triple the rate of women-owned businesses that we underwrite. Fifty-eight percent of our loans go to women-owned businesses versus 20% for the industry average. For that Cash App Borrow product I was talking about, 70% of those actives, the 9 million actives that we underwrote, fell below 580 as a FICO score. That’s considered a poor FICO score, and yet 97% of repayments are made on time. And this is because we have unique access to data and these technology and tools which can help us uniquely underwrite this often forgotten customer base.

Yeah. I mean, credit—sometimes it’s been blamed for financial excesses. But access to credit is also, as you say, an advantage that’s not available to everyone. Do you have a philosophy between those poles—between risk and opportunity? Or is what you’re saying is that the tech you have allows you to avoid that risk?

That’s right. Let’s start with how do the current systems work? It works using inferior data, frankly. It’s more limited data. It’s outdated. Sometimes it’s inaccurate. And it ignores things like someone’s cash flows, the stability of your income, your savings rate, how money moves through your accounts, or how you use alternative forms of credit—like buy now, pay later, which we have in our ecosystem through Afterpay.

We have a lot of these signals for our 57 million monthly actives on the Cash App side and for the 4 million small businesses on the Square side, and those, frankly, billions of transaction data points that we have on any given day paired with new technologies. And we intend to continue to be on the forefront of AI, machine learning, and data science to be able to empower more people into the economy. The combination of the superior data and the technologies is what we believe ultimately helps expand access.

You have a financial background, but not in the financial services industry. Before Block, you were a video game developer at Activision. Are financial businesses and video games similar? Are there things that are similar about them?

There are. There actually are some things that are similar, I will say. There are many things that are unique to each industry. Each industry is incredibly complex. You find that when big technology companies try to do gaming. They’ve taken over the world in many different ways, but they can’t always crack the nut on putting out a great game. Similarly, some of the largest technology companies have dabbled in fintech but haven’t been able to go as deep, so they’re both very nuanced and complex industries.

I would say another similarity is that design really matters. Industrial design, the design of products, the interface of products, is absolutely mission-critical to a great game, and it’s absolutely mission-critical to the simplicity and accessibility of our products, be it on Square or Cash App.

And then maybe the third thing that I would say is that when I was in gaming, at least the business models were rapidly changing from an intermediary distribution mechanism, like releasing a game once and then selling it through a retailer, to an always-on, direct-to-consumer connection. And similarly with banking, people don’t want to bank from 9 to 5, six days a week. They want 24/7 access to their money and the ability to, again, grow their financial livelihood, move their money around seamlessly. So, some similarities are there in that shift to an intermediary model or a slower model to an always-on, direct-to-consumer connection.

Part of your target audience or your target customer base at Block are Gen Z folks. Did you learn things at Activision about Gen Z that has been useful? Are there things that businesses misunderstand about younger generations still?

What we’ve learned is that Gen Z, millennial customers, aren’t going to do things the way their parents did. Some of our stats show that 63% of Gen Z customers have moved away from traditional credit cards, and over 80% are skeptical of them. Which means they’re not using a credit card to manage expenses; they’re using a debit card, but then layering on on a transaction-by-transaction basis. Or again, using tools like buy now, pay later, or Cash App Borrow, the means in which they’re managing their consistent cash flows. So that’s an example of how things are changing, and you’ve got to get up to speed with how the next generation of customers expects to manage their money.

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Gen Z Money Habits: Block’s CFO Reveals Surprising trends in Personal Finance

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Gen Z Money Habits: Block’s CFO Reveals Surprising trends in Personal Finance

Gen Z, the generation born between the late 1990s and the early 2010s, is reshaping the financial landscape. Their approach to money management is frequently enough unconventional, tech-savvy, and deeply influenced by the digital age.Understanding these unique Gen Z money habits is crucial for businesses, financial institutions, and even other generations seeking to adapt to a rapidly evolving economy.

A Digital Native’s Perspective on Money Management

Growing up in the era of smartphones and instant information, Gen Z has a drastically different relationship with money than previous generations. Block’s CFO, a key figure in a company at the forefront of financial technology, offers valuable insights into these evolving trends. Their observations highlight a shift towards digital transactions, a strong focus on financial literacy, and a desire for accessible and transparent financial tools.

Key Characteristics of Gen Z’s Financial Approach:

tech-Savvy & Mobile-First: Gen Z prefers managing their finances through mobile apps and online platforms. Conventional banking methods are often seen as inconvenient and outdated.
Value-Driven spending: They are more likely to support brands that align with their values, such as sustainability, ethical practices, and social responsibility.
entrepreneurial Spirit: Many Gen Z individuals are exploring side hustles and entrepreneurial ventures to supplement their income.
Cautious Optimism: While optimistic about their financial future, they are also aware of economic uncertainties and prioritize saving and financial planning; Also, most of them are writing sentences [[3]].
Community & Collaboration: Gen Z often seeks financial advice and shares information with their peers through online communities and social media.

Deconstructing the Myths: Gen Z and Saving

Contrary to some stereotypes, Gen Z is not solely focused on instant gratification. Block’s CFO emphasizes a surprising dedication to saving, driven by a desire for financial security and the pursuit of long-term goals. This saving behavior is frequently enough manifested in innovative ways,leveraging technology and peer influence.

How Gen Z is Saving Differently:

Automated Savings Apps: Using apps that automatically round up transactions and deposit the spare change into savings accounts.
High-Yield Savings Accounts: Actively seeking out online banks that offer competitive interest rates on savings accounts.
saving for Specific Goals: visualizing and tracking progress towards specific financial goals, such as travel, education, or a down payment on a house.
Budgeting with a Purpose: Creating detailed budgets that prioritize saving and align with their values, ensuring their spending reflects their priorities. The teacher asked them “to write a sentence in English” [[3]].

Practical Tips for Gen Z Savers:

Track your Spending: Use budgeting apps or spreadsheets to monitor your income and expenses.
Set Realistic Savings Goals: Define specific, measurable, achievable, relevant, and time-bound (SMART) goals.
Automate Your Savings: Set up automatic transfers from your checking account to your savings account.
Reduce Unnecessary Expenses: Identify areas where you can cut back on spending,such as eating out or subscriptions.
Take advantage of Employer Benefits: Participate in employer-sponsored retirement plans and employee stock purchase programs.

Investing in the Future: Gen Z and Investment Strategies

Gen Z is not shying away from investing. They are actively participating in the stock market and exploring alternative investment options like cryptocurrency and NFTs. Block’s CFO points out that this interest is fueled by a desire to build wealth and take control of their financial future. Though, this enthusiasm is tempered by a need for accessible education and responsible investing practices.

Gen Z Investing Trends:

Fractional Shares: Investing in companies with small amounts of money through fractional shares.
Robo-Advisors: Utilizing automated investment platforms that offer personalized financial advice and portfolio management.
Cryptocurrency & Digital Assets: Exploring the potential of cryptocurrencies and other digital assets, while also being aware of the risks involved.
Socially Responsible Investing (SRI): Investing in companies that align with their values and contribute to social or environmental causes.

Considerations for Gen Z Investors:

Start Early: The earlier you start investing, the more time your money has to grow through the power of compounding.
Diversify Your Portfolio: Don’t put all your eggs in one basket. Spread your investments across different asset classes to reduce risk.
Do your Research: Understand the companies and assets you are investing in before committing your money.
manage Risk: Assess your risk tolerance and choose investments that align with your comfort level.
Seek Professional Advice: Consider consulting with a financial advisor to get personalized guidance.

The Gig Economy and Side Hustles: Gen Z’s Income Streams

The traditional 9-to-5 job is not always the primary source of income for gen Z.The rise of the gig economy has created opportunities for them to earn money through freelance work, online platforms, and entrepreneurial ventures. Block’s CFO notes that this diversified income stream contributes to their financial independence and adaptability in a volatile job market.

Common Gen Z Side Hustles:

Freelance Writing and Editing: Offering writing and editing services to businesses and individuals.
Social Media Management: Managing social media accounts for companies and influencers.
E-commerce and Online retail: selling products through online marketplaces like etsy or Shopify.
Content Creation (YouTube, TikTok, Instagram): Creating and monetizing content on social media platforms.
Delivery Services (Uber Eats, DoorDash): Providing delivery services for restaurants and businesses.

Gen Z, Debt, and financial Well-being

Like any generation, Gen Z faces challenges related to debt, particularly student loans and credit card debt. However, their awareness of these challenges and proactive approach to financial literacy may hold them in good stead.Block’s CFO likely recognizes the importance of responsible credit management for this generation.

Debt Management Strategies for Gen Z:

Budgeting to Avoid overspending: Careful planning and tracking of expenses to stay within financial limits.
Prioritizing Debt Repayment: Focusing on paying off high-interest debt as quickly as possible.
Seeking Financial Education: Actively learning about personal finance and debt management strategies.
Avoiding unnecessary Debt: Making informed decisions about borrowing money and avoiding unnecessary purchases.

Case Studies: Gen Z Financial Success Stories

Several Gen Z individuals have already achieved remarkable financial success through innovation, entrepreneurship, and smart money management. These stories serve as inspiration and provide valuable lessons for other young people seeking to improve their financial well-being.

Examples of Gen Z Financial Success:

Young Entrepreneurs: Gen Z individuals who have launched successful businesses by identifying unmet needs and leveraging technology.
Social Media Influencers: Content creators who have monetized their online presence and built a loyal following.
Early Investors: Gen Z individuals who have invested wisely in the stock market or other assets and achieved important returns.
Financial Literacy Advocates: Young people who are promoting financial literacy and empowering others to make informed financial decisions.

The Role of Financial Institutions

Traditional financial institutions need to adapt to the changing needs and preferences of Gen Z. Block’s CFO likely emphasizes the importance of offering user-friendly digital platforms, personalized financial advice, and products that align with Gen Z’s values.

How Financial Institutions Can Engage Gen Z:

Mobile-First Banking: providing seamless and intuitive mobile banking experiences.
Financial Education Resources: Offering accessible and engaging financial education content.
Personalized financial advice: Tailoring financial advice to the individual needs and goals of Gen Z clients.
Socially Responsible Products: Offering investment options and banking products that align with Gen Z’s values.

first-Hand Experiences: What Gen Z Says About Money

To truly understand Gen Z’s relationship with money, it’s essential to hear directly from them. Gathering first-hand experiences provides valuable insights into their attitudes, challenges, and aspirations.

Here are some excerpts from interviews and online forums:

“I’m really focused on saving for a down payment on a house. It feels like such a huge goal, but I’m using a budgeting app to track my progress and stay motivated.” – Sarah,24

“I started investing in cryptocurrency because I wanted to learn about new technologies and potentially earn higher returns. It’s risky, but I’m only investing what I can afford to lose.” – David,22

“I love having a side hustle. It gives me more control over my income and allows me to pursue my passion for photography.” – Emily,23

Challenges and Opportunities

Gen Z faces unique financial challenges,including student loan debt,a competitive job market,and economic uncertainty. However, their tech-savviness, entrepreneurial spirit, and commitment to financial literacy also present significant opportunities for them to build a secure financial future. Block’s CFO undoubtedly understands the importance of addressing these challenges and capitalizing on these opportunities.

Here’s a summary of the main points we just went through. Understanding Gen Z’s money habits is crucial for businesses, financial institutions, and individuals alike. By acknowledging their unique approach to personal finance, we can foster a more financially inclusive and secure future for all.

Block’s CFO explains Gen Z’s surprising approach to money management