Affirm has submitted applications to both the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation to establish a wholly owned, Nevada-chartered industrial loan company, to be named Affirm Bank. The company’s filings, dated January 23, outline plans for independent governance and internal control frameworks, and emphasize that an FDIC-insured subsidiary will allow Affirm to scale its transparent credit products more efficiently. If approved, the bank would complement Affirm’s existing partnerships with traditional financial institutions and facilitate future product innovation.

Since its founding over a decade ago, Affirm has underwritten approximately 60 million consumers and extended nearly $130 billion in access to transparent credit. By eschewing late and hidden fees, the company estimates that U.S. households opting for its installment offerings could collectively have saved $18 billion in 2024 compared with revolving credit cards. In its latest reported quarter, durable demand for 0% installment options drove gross merchandise volume up 42% year-over-year to $10.8 billion, while revenue rose 34% to $933 million, illustrating continued consumer appetite for honest finance.

Affirm has tapped John Marion as President of the proposed bank subsidiary, leveraging his 25-year tenure at institutions including JPMorgan Chase, Hatch Bank, MVB Financial and Comenity Bank. Marion will lead the bank’s operational build-out, supported by a board with deep banking expertise. CEO Max Levchin stated that the subsidiary will strengthen and diversify Affirm’s platform, enabling the rollout of new services and expanded consumer and merchant offerings over the long term.