With the planned Klarna Bank USA, the company intends to provide its banking services in the U.S. directly rather than through partner institutions. According to a statement released on Monday, applications for a banking licence have been submitted to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC).
The bank is expected to be established as an Industrial Bank headquartered in the state of Utah and, subject to regulatory approval, will become a wholly owned subsidiary of Klarna Inc. It will have its own board of directors, independent control and governance structures, and deposits will be insured by the FDIC.
Services Currently Provided Through Partner Banks
Klarna has held a European banking licence since 2017 and has so far offered its financial services to U.S. customers through partner banks. According to the company, more than 30 million Americans have used Klarna's services since 2019.
Klarna says it has provided more than $91 billion in credit during that period. The company estimates that its customers have saved more than $5 billion in interest costs compared with revolving credit card debt.
