Affirm has submitted an application to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) for establishing Affirm Bank.

The proposed Nevada-chartered industrial loan company is designed to enhance Affirm’s expansion strategy, integrating an FDIC-insured institution. This move will facilitate broader access to financial services across the United States and reach a wider audience of consumers.

Scalable Growth Strategy

Upon approval, Affirm Bank would function as a wholly-owned, Nevada-chartered subsidiary under the parent company. It will retain its autonomous governance structure and internal controls, ensuring operational independence.

Being part of the Affirm group, this proposed financial entity is expected to refine existing business and bank partnership models, offering enhanced flexibility and diversity. This strategic approach aims to support responsible growth in the financial services industry.

Max Levchin, the Founder and CEO of Affirm, stated that this banking subsidiary will bolster and diversify the company’s platform. It will enable Affirm to introduce new solutions to markets, focusing on long-term development to better serve consumers and merchants.

This application follows a series of collaborative efforts by Affirm and several product launches. Notably, it includes plans for launching instalment loans for renters through partnerships with Esusu, designed to offer flexible solutions for managing significant recurring expenses. Previously, in early 2023, Affirm partnered with Gr4vy to introduce transparent payment options across various online and mobile checkouts.

By pursuing this banking subsidiary initiative, Affirm aims to strengthen its market position while enhancing the offerings available to its customers.