Affirm’s Strategic Shift: Moving Towards a US Bank Charter

US fintech Affirm has submitted formal applications to key American regulatory bodies to launch 'Affirm Bank', an industrial loan company designed to broaden its operational scope.

The firm has filed documentation with the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) to establish the Nevada-chartered entity.

This proposed subsidiary is intended to facilitate consumer access to transparent financial tools while providing Affirm with the structural stability of an FDIC-insured institution.

Affirm’s mission: Where will the subsidiary come in? 

Should the application be successful, the bank will function as a wholly-owned, independently-governed subsidiary.

The move follows a period of significant volume; by the close of September 2025, Affirm had facilitated nearly US$130bn in credit access, underwriting for approximately 60 million individuals.

Internal data suggests users could have saved roughly US$18bn in 2024 by opting for Affirm’s model over traditional revolving credit card debt.

The platform distinguishes itself by avoiding hidden or late fees and underwriting each individual transaction.

Max Levchin, Founder and CEO of Affirm, says: “A banking subsidiary would strengthen and diversify Affirm’s platform, and help us bring honest financial products to more people.

“This is about expanding what we can do for consumers and merchants, and building for the long term.”

Max believes the expansion will augment Affirm's existing partnership models with other banks.

The objective is to secure greater capital flexibility and diversify revenue streams, fostering further innovation within the sector. Approval could also pave the way for a broader suite of financial products over time.

Expansion strategy: What steps did Affirm take?

To lead the new entity, Affirm has appointed John Marion as President of Affirm Bank.

Bringing a quarter-century of leadership experience, John is recognised for managing the intersection of legacy banking and fintech innovation. His background includes senior roles at JPMorgan Chase, Hatch Bank, MVB and Comenity Bank.

Beyond John's expertise, the subsidiary will be governed by a board and management team possessing what the company describes as ‘deep banking expertise’.

Enabling financial accessibility

Having secured a position as a Top 10 Embedded Finance provider, Affirm has evolved from a Buy Now, Pay Later (BNPL) specialist into a critical infrastructure partner for retailers.

Its core objective remains the enhancement of financial inclusion through interest-free options and bespoke loan structures.

The company asserts that its model allows consumers to reduce their total cost of credit by 5-30% annually.

To further this mission and drive digital commerce, Affirm entered a strategic alliance with FIS in early 2025.

The collaboration challenges the traditional banking status quo by integrating Affirm’s technology directly into FIS’s transaction processing systems.

This allowed for the embedding of instalment options into mobile apps and online banking portals, letting users manage payments through their existing bank accounts rather than through external services.

At its launch, the partnership linked banking customers to a network of 335,000 merchants.

As of June 2025, Affirm boasted 23 million active users and a gross merchandise value of US$36.7bn in the US. Furthermore, retail partners noted a more than 70% uptick in average order values across the 2024 and 2025 fiscal years.