The trend: When Chime’s IPO took off in mid-June, it signaled the start of a new trend of fintechs going public—and branching further into traditional banking.

Now, Klarna is notably accelerating its pivot to digital banking in the US to prepare for its own highly anticipated IPO.

The plan: Recognizing the increased scrutiny, regulatory risks, and potential saturation of the buy now, pay later (BNPL) market, Klarna is actively shifting to become a broader digital bank, according to The Financial Times.