Affirm Holdings, Inc. (NASDAQ:AFRM) today announced that it has submitted applications to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) to establish Affirm Bank.

The proposed bank subsidiary would enable Affirm to continue scaling responsibly while having an FDIC-insured institution. This would help Affirm expand access to honest financial products to more consumers.

If approved, the proposed entity would operate as a wholly owned, Nevada-chartered, FDIC-insured bank subsidiary of Affirm, and maintain its own independent governance and internal controls. The proposed subsidiary would complement Affirm’s current business and bank partnership models, including by providing greater flexibility and diversification, to help advance responsible innovation in financial services. If approved, it would also spur opportunities to introduce new products and services over time.

“A banking subsidiary would strengthen and diversify Affirm’s platform, and help us bring honest financial products to more people,” said Max Levchin, Founder and CEO of Affirm. “This is about expanding what we can do for consumers and merchants, and building for the long term.”

John Marion has been selected to serve as President of Affirm Bank, bringing over 25 years of experience leading innovation at the intersection of banking and fintech, including senior leadership roles at JPMorgan Chase, Hatch Bank, MVB Financial Corp., and Comenity Bank. The bank will also be supported by a strong management team and board with deep banking expertise and proven track records.