Klarna Applies for U.S. Banking License to Reduce Third-Party Dependency
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Buy-now-pay-later giant Klarna filed with the FDIC to charter its own industrial bank in Utah. If approved, it will take deposits, issue loans, and run credit cards in-house — the latest fintech to chase a full banking license.
What license is Klarna after, and how?
Klarna said Monday it has filed with the FDIC and Utah regulators to set up Klarna Bank USA, a wholly owned subsidiary.
It is applying for a Utah industrial bank charter — a special license that lets a non-bank parent own a bank. This means → Klarna is taking the same side door other fintechs have used, bypassing the heavier bank-holding-company route.
Gary Harding has been named president and CEO of the new bank. He previously ran Milestone Bank and Prime Alliance Bank — a community-banking veteran.
How does the business change if approved?
With a charter, Klarna can fund loans directly with customer deposits, replacing costlier wholesale funding. In plain terms = instead of borrowing from capital markets and re-lending, it would use depositors' money — a sharp cut in funding costs.
Payments, credit, savings, and merchant services would all move in-house, ending reliance on third-party bank partners like WebBank, which currently holds Klarna's US savings accounts.
Klarna could also issue checking accounts and credit cards on its own, pivoting from a BNPL tool into a full-service consumer bank.
Why now — and what is the bigger trend?
In April, fintech infrastructure firm Mercury won conditional approval to open its own bank. Crypto firms are queuing up too. This reflects a broader wave: fintechs moving from "renting" a partner's license to holding their own.
Last month Klarna launched a high-yield savings account in the US, but it still sits under WebBank's charter. An independent license is the prerequisite to truly owning that product.
CEO Sebastian Siemiatkowski framed the move as bringing "more competition and innovation" to US finance. This means → Klarna is pitching the license bid as a consumer-benefit narrative, not just a cost play.
What risks should investors watch?
Klarna listed on the NYSE last September. Its stock now trades at roughly half its $40 IPO price. In plain terms = the market has already discounted Klarna by half; whether the license comes through is the key variable for resetting expectations.
Approval timing and outcome remain uncertain — the FDIC has tightened scrutiny of fintech bank applications in recent years.
Even if approved, building out a self-contained deposit-and-lending operation — systems, compliance, staffing — takes real time. No overnight impact.
Content is for reference only, not financial advice.