00:00It's Benzinga bringing Wall Street to Main Street.
00:02Klarna said Monday it applied to federal and state regulators to establish a U.S. bank subsidiary,
00:08according to CNBC. If approved, Klarna Bank USA would be an FDIC-backed institution
00:15chartered in Utah and led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank.
00:22Klarna said the charter would bring its banking operations in-house and strengthen reliability
00:26across payments, credit, and merchant services. The application marks Klarna's latest step toward
00:31becoming a broader consumer bank, following last month's launch of high-yield savings accounts
00:36for U.S. customers through Partner Web Bank. Owning a bank could let Klarna fund loans with
00:41customer deposits, offer checking accounts and credit cards directly, and rely less on third-party
00:45partners. Klarna is trading at about half its $40 IPO price. For all things money, visit Benzinga.com.
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