STOCKHOLM, Sweden — Klarna is seeking to deepen its presence in the U.S. financial services market by applying for a U.S. bank charter while also expanding financial wellness tools available to its customers, moves that underscore the Swedish fintech’s strategy of evolving beyond its roots as a buy now, pay later provider.
According to CNBC, Klarna said it has applied to federal and state regulators to establish Klarna Bank USA, a federally insured banking subsidiary that would be headquartered in Utah if approved. The proposed institution would be chartered by the state and backed by the Federal Deposit Insurance Corporation.
The proposed bank would be led by Gary Harding, the former chief executive of Milestone Bank and Prime Alliance Bank.
‘Appetite for Transparency’
“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,” Klarna co-founder and CEO Sebastian Siemiatkowski said in a statement cited by CNBC.
Siemiatkowski said a banking charter would enable Klarna to provide customers with additional borrowing tools while increasing competition and consumer choice.
If regulators approve the application, Klarna would be able to bring more of its banking operations in-house, including payments, lending and merchant services. Like other financial technology companies pursuing bank charters, Klarna could also fund loans with customer deposits rather than relying as heavily on wholesale funding and third-party banking partners.
The application is the latest indication that fintech firms increasingly view bank ownership as a strategic advantage. CNBC noted that fintech company Mercury received conditional approval earlier this year to establish its own bank, reflecting broader efforts by fintech and cryptocurrency firms to enter the regulated banking system.
Expansion Beyond BNPL
Klarna has been steadily expanding beyond its buy now, pay later business. Last month, the company introduced high-yield savings accounts in the United States through a partnership with WebBank, which currently holds the deposits. CNBC reported that Klarna, which went public last September, is currently trading at about half of its $40 initial public offering price.
Partnership With Money Wellness
Separately, Klarna announced it has partnered with financial well-being provider Money Wellness to offer free financial health assessments to users through the Klarna app.
According to a blog post by Money Wellness and a company announcement, Klarna customers can now access the company’s “Money MOT,” a financial review designed to provide a personalized assessment of their finances along with guidance on budgeting, maximizing income and managing debt.
Users can complete the financial assessment online through a secure link, speak directly with a Money Wellness adviser or schedule a consultation for a later time.
In its blog post, Money Wellness compared the service to the United Kingdom’s mandatory vehicle MOT inspections, saying consumers should periodically review their financial health just as they would maintain a car.
