Klarna Applies for ILC Charter
If approved, Klarna Bank USA would be FDIC-backed and let the fintech fund loans with customer deposits instead of wholesale financing.
- On Monday, Swedish fintech Klarna applied to federal and state regulators to establish Klarna Bank USA, a Utah-chartered, Federal Deposit Insurance Corporation-backed institution.
- The move marks Klarna's shift toward becoming a broader consumer bank, allowing the firm to fund loans with customer deposits instead of relying on expensive third-party banking partners.
- Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, would lead the proposed institution, while Klarna currently leans on partner WebBank to hold U.S. savings deposits.
- Industry peers including Mercury, Revolut, and Bunq are also pursuing charters, as fintech firms increasingly view owning their own banking infrastructure as a key competitive advantage.
- CEO Sebastian Siemiatkowski called an own license 'the natural next step' to build trust, though the company faces regulatory hurdles while trading near half its September IPO price.
16 Articles
16 Articles
Klarna wants to become a bank. Here’s what that could mean for millions of customers
The “buy now, pay later” fintech giant Klarna wants to become a real bank. The Swedish company just announced its plans to establish a U.S.-based subsidiary known as Klarna Bank USA. If approved, the FDIC-backed bank would set up shop out of Utah. “Banking is built on trust,” Klarna CEO and cofounder Sebastian Siemiatkowski said in the announcement. “We’ve seen firsthand the appetite for a fairer, more transparent approach in the U.S., and our o…
Buy-Now-Pay-Later Firm Klarna Applies for US Banking License
Klarna applies for a US banking licence
Klarna wants to be a real American bank. The Swedish BNPL giant has applied for a US banking licence, betting a friendlier Washington will let it crack a market that has bruised European rivals. Klarna has applied to US regulators to set up its own bank, tech.eu reports. The Swedish fintech filed with the Utah […] This story continues at The Next Web
After obtaining a banking license in Europe in 2017, Klarna wants to have the same status in the United States by establishing a banking subsidiary in Utah.
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