Overview
- Klarna submitted applications to the Utah Department of Financial Institutions and the FDIC to form Klarna Bank USA, a Utah-chartered industrial bank, in filings announced on Monday, July 6.
- The company named Gary Harding as the proposed CEO of the new bank and said the institution would be FDIC‑insured and wholly owned by Klarna if regulators approve the charter.
- An industrial bank charter would let Klarna accept insured deposits, make loans and run payments directly instead of relying on partner banks, but it also triggers capital, governance, compliance and ongoing FDIC oversight.
- Klarna says customer deposits already supply more than 90% of its funding, and the firm argues a charter would lower funding costs, speed product rollout and let it offer checking, savings and other banking tools to U.S. customers.
- The application joins a broader fintech push for U.S. charters and is likely to face detailed review of Klarna’s capital, risk controls and long-term viability before any FDIC insurance decision is made.