Ahuja,who was speaking during a pre-arranged trip to Australia as the US banking sector reels from the collapse of Silicon Valley Bank,argued that the current situation has further highlighted why consumers need services provided by fintechs such as Block.
Despite a plunge in the valuations of Afterpay’s buy now,pay later (BNPL) rivals in the past year,Ahuja also said Block still viewed Afterpay as a “transformational opportunity,” as she laid out Block’s plans to push further into payments in Australia,and ultimately launch its consumer app in this market.
In an interview in Sydney,Ahuja backed the US government’s support package,which includedguarantees of uninsured deposits held by failed banks Silicon Valley Bank and New York-based Signature Bank.
“I think the government stepping in on Sunday evening to support and backstop the deposits of these smaller regional banks was a really critical move to support that landscape,” she said. “Otherwise there is a fear that you see actually less competition in the US banking landscape.”
Block,which is dual-listed in the US and on the ASX,has said it does not have material exposure to Silicon Valley Bank. The company has a US banking licence and provides savings accounts in the US,though Ahuja said the banking venture,while relatively small,was a long-term play for the business.
A bigger focus for Block is pushing ahead with the integration of Afterpay – a platform that provides short-term interest-free loans,competing with credit cards.