Klarna has officially submitted its application for a Klarna U.S. Banking License to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The move is meant to convert Klarna Bank USA into a Utah-chartered industrial bank. The application marks another move in Klarna’s long-term plan to strengthen its digital banking footprint in the U.S. The proposal also reflects the company’s continued focus on state-of-the-art financial services.
Since 2017 Klarna has operated as a licensed bank across Europe. Meanwhile it has been serving U.S. clients through established banking partners. Since 2019, the company has delivered more than $91.3 billion in responsible credit to consumers in America. Klarna also says its services have helped customers save more than $5.1 billion in interest versus traditional revolving credit card debt. Today, roughly 30 million Americans use Klarna annually and hundreds of thousands of merchants depend on Klarna’s payment solutions to accelerate business growth.
“Banking is built on trust,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna. “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, giving customers tools to borrow responsibly and build financial confidence, while bringing greater competition, innovation, and choice to consumers and merchants alike.”
Klarna Bank USA Plans to Strengthen Digital Financial Services
If the application is approved by regulators, Klarna Bank USA will be a wholly owned subsidiary of Klarna Inc. The proposed institution will be chartered in Utah and will be FDIC insured. Also, it will operate with its own board, specific governance and internal controls put in place.
The banking licence would enable Klarna to run its own banking business instead of using partner banks. As a result, the company expects improved operational reliability in payments, savings, credit products and merchant services. The transition would help support long-term business growth and improve service consistency.
The proposed bank aims to combine digital banking technology with traditional financial products for consumers. This meant customers could enjoy transparent banking services with no hidden fees through one digital platform.
Gary Harding has been named President and CEO of Klarna Bank USA. Harding has more than 10 years of executive leadership experience in the U.S. financial industry. He previously served as Chairman and CEO of Milestone Bank and President and CEO of Prime Alliance Bank.
Klarna said it would remain in close contact with regulators throughout the review. The company said the collaborative approach is in line with its long-standing commitment to regulatory engagement and responsible banking practices. Ultimately, Klarna wants to provide consumers in the United States with a modern, transparent and customer-centric banking experience.
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News Source: Businesswire.com
