What Prompted Affirm’s Application to be a US Bank?

Affirm has applied to the Nevada Financial Institutions Division in addition to the Federal Deposit Insurance Corporation (FDIC) for the establishment of a Nevada-chartered industrial loans company. 

Affirm Bank will assist with consumer access to honest financial products. 

The proposed bank subsidiary will enable continued responsible scaling of Affirm with the added security of an FDIC-insured institution. 

How the subsidiary will help Affirm’s mission 

If approved, the proposed institution will operate as an independently governed and wholly-owned FDIC-insured bank subsidiary of Affirm. 

As of the end of September 2025, Affirm has extended close to US$130bn in access to credit, underwriting for an estimated 60 million consumers. 

The company estimates that consumers could have saved a total of US$18bn by electing to use Affirm’s services over revolving on a credit card in 2024. 

Affirm does not charge any hidden or late fees, and underwrites every 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.”

The expansion would compliment current Affirm business and bank partnership models. 

It aims to provide greater flexibility and diversification in hopes of advancing responsible innovation in financial services. 

New products and services could also be introduced over time if the subsidiary is approved. 

Expansion strategy: What steps did Affirm take?

Affirm has named John Marion as President of Affirm Bank. 

Bringing with him 25 years of leadership, John has also refined his position as an expert in change by leading innovation between fintech and banking.  

Previously, he has held senior positions at financial institutions such as JPMorgan Chase, Hatch Bank, MVB and Comenity Bank. 

In addition to John’s experience, Affirm Bank will also be supported by a strong management team and board with what the financial services company calls ‘deep banking expertise’. 

How does Affirm contribute to financial accessibility? 

Recently named as a Top 10 Embedded Finance provider, Affirm has established itself not only as a leader in BNPL services, but also as an indispensable partner for merchants.

The company’s mission is to expand financial accessibility for consumers by offering interest-free payments and personalised loans. 

Affirm claim that consumers could annually save between 5-30% on their total cost of credit 

As part of its strategy to further enable consumers with financial literacy and overall increase digital commerce, it partnered with FIS in early 2025. 

The partnership provided a challenge to traditional banks and the status quo approach to payment options at the time. 

FIS used its transaction processing to embed Affirm’s payment technology directly into online banking platforms and existing mobile applications. 

Customers are able to manage instalment payments through their primary banking relationship as opposed to separate services. 

At the time, it connected bank customers to Affirm’s network of 335,000 retailers. 

As of the end of June 2025, Affirm currently has 23 million active customers and a gross merchandise value of US$36.7bn in the US. 

Merchants using Affirm reported more than 70% increase in average cart sizes in the fiscal years of 2025 and 2024.