An article summarized by Business Wire:
Klarna announced it has applied with the Utah Department of Financial Institutions and the FDIC to establish Klarna Bank USA, a Utah-chartered industrial bank. The company, which has operated as a licensed bank in Europe since 2017, said the move would allow it to bring its U.S. banking operations in-house if regulators approve the application. Klarna currently serves 30 million Americans annually through partner banks and has provided more than $91 billion in consumer credit since 2019.
CEO and co-founder Sebastian Siemiatkowski said obtaining a U.S. banking charter is a natural next step as Klarna looks to offer a more transparent and customer-friendly banking experience. If approved, Klarna Bank USA would be FDIC-insured and operate with its own independent board and governance structure, enabling the company to expand its payments, savings, lending, and merchant services while emphasizing responsible borrowing and no hidden fees.
Gary Harding, the former CEO of Milestone Bank and Prime Alliance Bank, has been selected to lead Klarna Bank USA as president and CEO. Klarna said it will continue working closely with regulators throughout the approval process as it aims to build a modern digital bank for U.S. consumers. Globally, Klarna has more than 119 million active users, processes 3.4 million transactions daily, and partners with over one million merchants, including Uber, H&M, Nike, Airbnb, and Macy's.
