Klarna Seeks US Banking Licence
Klarna, the Swedish buy-now-pay-later giant, has applied for a US banking licence, aiming to establish its own bank, Klarna Bank USA, in the US. This move would allow Klarna to fund loans with customer deposits, offering checking accounts and credit cards directly. The application follows similar moves by Revolut and Bunq, and comes as the US banking market becomes more open to European entrants.
Key points
- Klarna has applied to US regulators to set up its own bank, Klarna Bank USA, an FDIC-insured institution.
- The bank would be led by former Milestone Bank chief Gary Harding if approved.
- A US charter would enable Klarna to fund loans with customer deposits, rather than pricier wholesale money.
- Klarna is not alone in seeking a US charter, with Revolut, Bunq, and Mercury also pursuing similar applications.
- The US banking market has historically resisted European entrants, but Klarna believes the current environment is more favorable.
Klarna Seeks US Banking Licence
Klarna, the Swedish buy-now-pay-later giant, has taken a significant step in its expansion into the US market by applying for a US banking licence. The company, which already holds a European banking licence, has filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to launch Klarna Bank USA, an FDIC-insured institution.
If approved, Klarna Bank USA would be led by former Milestone Bank chief Gary Harding. The bank would enable Klarna to fund loans with customer deposits, rather than pricier wholesale money, allowing the company to offer checking accounts and credit cards directly.
Klarna is not alone in seeking a US charter. Revolut, Bunq, and Mercury have also pursued similar applications, with the US banking market becoming increasingly open to European entrants.
The timing of Klarna's application is significant, as the US banking market has historically resisted European entrants. However, Klarna believes the current environment is more favorable, with the company betting on a friendlier Washington to let it crack the US market.
Sources
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