Fintech firm Affirm Holdings (AFRM) announced that it has submitted an application to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) to establish the Affirm Bank. The proposed Nevada-chartered industrial loan company would enable the Buy Now, Pay Later (BNPL) provider to have an FDIC-insured institution while scaling its business.
This proposal has caught the attention of Needham analyst Kyle Peterson, who upgraded AFRM stock from “Hold” to “Buy” and set a $100 price target, implying 60% potential upside from current levels. Peterson believes that Affirm Bank would be a “game-changer” for the company, providing access to deposit funding for loans while reducing third-party risk.
