Klarna applies for U.S. bank charter to expand beyond BNPL services
Swedish fintech Klarna has filed applications with federal and state regulators to launch a bank subsidiary in Utah, aiming to offer a broader range of financial products in the United States.
Swedish payments company Klarna announced on Monday that it has submitted applications to both federal and state regulators to create a U.S. bank subsidiary, Klarna Bank USA, which would be chartered in Utah and insured by the Federal Deposit Insurance Corporation. The proposed bank would be headed by Gary Harding, former chief executive of Milestone Bank and Prime Alliance Bank.
"We've seen firsthand the appetite for a fairer, more transparent approach in the U.S., and our own banking license is the natural next step," said Sebastian Siemiatkowski, Klarna's co-founder and chief executive. He added that the bank would give customers tools to borrow responsibly and build financial confidence while adding competition, innovation and choice to the market.
The move follows a trend among fintech firms to obtain their own banking charters rather than rely on partnerships with existing banks. Earlier this year, fintech Mercury received conditional approval for its own bank, and several crypto companies have also pursued similar licences. Klarna said a U.S. charter would allow it to bring banking operations in-house, enhancing reliability across payments, credit and merchant services.
Klarna recently launched high-yield savings accounts for U.S. users, currently hosted by partner WebBank, and the new bank would enable the firm to fund loans with customer deposits, offer checking accounts and credit cards, and reduce dependence on third-party banking partners.
