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Klarna seeks U.S. bank charter in push beyond buy now, pay later
CNBC • • business
Key Points:
- Klarna has applied to U.S. federal and state regulators to establish a bank subsidiary, Klarna Bank USA, which would be FDIC-backed and chartered in Utah if approved.
- The proposed bank would be led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, aiming to offer customers more transparent and responsible borrowing tools.
- This move reflects a growing trend among fintech firms to obtain their own banking charters, allowing them to bring operations in-house and reduce reliance on third-party banks.
- Klarna's application supports its transition from a buy now, pay later provider to a broader consumer bank, following its recent launch of high-yield savings accounts in the U.S. through a partner bank.
- Owning a bank charter would enable Klarna to fund loans with customer deposits, offer checking accounts and credit cards directly, and enhance innovation and competition in the financial market.
