Klarna Seeks U.S. Bank Charter to Bring Lending Operations In-House

Klarna has applied for a U.S. bank charter to establish a federally regulated subsidiary that would bring its lending operations in-house. The proposed Klarna Bank USA would be an FDIC-insured institution chartered in Utah, led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank. The move represents a shift from relying on partner banks to holding deposits, funding loans directly, and expanding consumer finance products. A bank charter would allow Klarna to reduce funding costs and maintain greater control over credit, payments, and customer relationships.
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