Klarna Submits Application to Establish U.S. Industrial Bank in Utah
Klarna filed applications with the Utah Department of Financial Institutions and the FDIC on Jul 6, 2026, to charter Klarna Bank USA as a Utah industrial bank with federal deposit insurance. The company has operated as a licensed bank in Europe since 2017 but currently serves U.S. customers through partner banks. Klarna Bank USA would be a wholly owned subsidiary of Klarna Inc., with its own independent board, governance, and internal controls.
The charter would allow Klarna to bring existing banking operations in-house across payments, savings, credit, and merchant services. Gary Harding, former chairman and CEO of Milestone Bank and president and CEO of Prime Alliance Bank, has been selected to lead Klarna Bank USA as president and CEO. Klarna says it has provided U.S. customers access to over $91.3 billion in credit since 2019 and serves 30 million Americans annually.
- Could disintermediate BaaS providers and partner banks currently supporting Klarna's U.S. lending operations
- Adds to growing trend of major fintechs seeking direct bank charters to reduce regulatory and cost dependencies