Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 64 , 28 December 2023


Open Access | Article

An Investigation on Klarna Financial Technology Fintech

Bowen Yan * 1
1 University of Leeds, Woodhouse Lane

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 64, 134-142
Published 28 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Bowen Yan. An Investigation on Klarna Financial Technology Fintech. AEMPS (2023) Vol. 64: 134-142. DOI: 10.54254/2754-1169/64/20231515.

Abstract

Studying the organisational structure is always essential in understanding how businesses operate both externally and internally. In that sense, by researching on the structure of business oragnisations, it is predicted for the researcher to obtain some valuable results. This approach can be seen as using a case study method in which detailed investigations are conducted into the organisation structure, which yield fruitful observations. The current study delves into Klarna, a prominent Swedish Fintech company, focusing on its history, corporate governance evolution, impact on the financial and business sectors, technological aspects, and the challenges it faces. Klarna has revolutionized the financial industry with its Buy-Now-Pay-Later (BNPL) services, but it also confronts corporate governance, technological, regulatory, and financial challenges. This analysis underscores the significance of Klarna's transformation in the financial and business sectors while acknowledging the hurdles it must overcome to ensure its sustained growth. Klarna needs to embraces these chanllenges to move forward to future prospects.

Keywords

Corporate Governance, Technological Challenges, Klarna Financial Technology

References

1. References Klarna (2022b) Risk Management, Risk Reporting and Control Functions. https://www.klarna.com/international/about-us/corporate-governance/risk-management/

2. Klarna (2022d) The History of making shopping Smoooth. https://www.klarna.com/international/klarna-history/

3. Klarna (2022a) About Klarna. https://www.klarna.com/international/about-us/

4. OECD (2008) Using the OECD Principles of Corporate Governance A BOARDROOM PERSPECTIVE.https://www.oecd.org/corporate/ca/corporategovernanceprinciples/40823806.pdf

5. Klarna (2022c) The Board. https://www.klarna.com/international/about-us/corporate-governance/the-board/

6. Armstrong, C. S., Core, J. E., & Guay, W. R. (2014) Do independent directors cause improvements in firm transparency?, Journal of financial economics, 113(3), 383-403.

7. Bansal, S., & Thenmozhi, M. (2021) Does CEO duality affect board independence? The moderating impact of founder ownership and family blockholding, IIMB Management Review, 33(3), 225-238.

8. Chahine, S., & Tohmé, N. S. (2009) Is CEO duality always negative? An exploration of CEO duality and ownership structure in the Arab IPO context, Corporate Governance: An International Review, 17(2), 123-141.

9. Fung, B. (2014) The demand and need for transparency and disclosure in corporate governance, Universal Journal of Management, 2(2), 72-80.

10. Guttman-Kenney, B., Firth, C., & Gathergood, J. (2022) Buy Now, Pay Later (BNPL)... On Your Credit Card, arXiv preprint arXiv:2201.01758.

11. Huu Nguyen, A., Thuy Doan, D., & Ha Nguyen, L. (2020) Corporate governance and agency cost: Empirical evidence from Vietnam. Journal of Risk and Financial Management, 13(5), 103.Bain & Company (2021, October 19) Assessing BNPLs Benefits and Challenges. https://www.bain.com/insights/assessing-benefits-and-challenges-bnpl-report-2021/

12. Najaf, K., Chin, A., & Najaf, R. (2021) Conceptualizing the corporate governance issues of fintech firms, In The fourth industrial revolution: implementation of artificial intelligence for growing business success (pp. 187-197). Springer, Cham.

13. Eulerich, M. (2021) The new three lines model for structuring corporate governance. A critical discussion of similarities and differences, Corporate Ownership and Control, 18 (2), 180–187.

14. Bantleon, U., dArcy, A., Eulerich, M., Hucke, A., Pedell, B., & Ratzinger‐Sakel, N. V. (2021) Coordination challenges in implementing the three lines of defence model, International Journal of Auditing,25(1), 59-74.

15. Jordan, D. (2020) Privacy watchdog to probe Klarna after email backlash. BBC. Available at: https://www.bbc.com/news/business-54521820

16. PYMTS (2021, July 5) Swedens FSA Probes Klarna Over Customer Info Breach. https://www.pymnts.com/news/security-and-risk/2021/sweden-fsa-probes-klarna-over-customer-info-breach/

17. Klarna UK (2022) Klarnas app and growth solutions drive record-high traffic of 301 million clicks to retail partners. https://www.klarna.com/international/press/klarnas-app-and-growth-solutions-drive-record-high-traffic-of-301-million-clicks-to-retail-partners/

18. Alcazar, J., & Bradford, T. (2021a) The Appeal and Proliferation of Buy Now, Pay Later: Consumer and Merchant Perspectives, Payments System Research Briefing, (November 10, 2021), 1-7.

19. Nunez, A. (2021, November 3) Klarnas super app launch kicks off transformation from payments platform into end-to-end shopping hub. E-marketer. https://www.emarketer.com/content/klarna-s-super-app-launch-kicks-off-transformation-payments-platform-end-to-end-shopping-hub Flinders, K. (2019) Klarna uses AWS cloud as it moves from startup to global fintech force. Computer weekly. https://www.computerweekly.com/news/252474878/Klarna-uses-AWS-cloud-as-it-moves-from-startup-to-global-fintech-force#:~:text=The%20AWS%20cloud%20will%20provide,Koen%20Koppen%2C%20CTO%20of%20KlarnaPant, S. K. (2020) Fintech: Emerging Trends, Telecom Business Review, 13(1).

20. Kang, J. (2018). Mobile payment in Fintech environment: trends, security challenges, and services. Human-centric Computing and Information sciences, 8(1), 1-16.

21. Suryono, R. R., Budi, I., & Purwandari, B. (2020) Challenges and trends of financial technology (Fintech): a systematic literature review, Information, 11(12), 590.

22. Finextra (2021) Klarna app bug logged people into other users accounts. https://www.finextra.com/newsarticle/38149/klarna-app-bug-logged-people-into-other-users-accounts

23. Broadbent, G. (2021) Klarna strikes new partnerships as credit card competition looms. https://www.emarketer.com/content/klarna-strikes-new-partnerships-credit-card-competition-looms

24. Geron, T. (2021) Buy now, pay later is booming. But companies are facing pressure to change. Protocol.com https://www.protocol.com/fintech/buy-now-pay-later-holidays

25. Johnson, D., Rodwell, J., & Hendry, T. (2021) Analyzing the impacts of financial services regulation to make the case that buy-now-pay-later regulation is failing, Sustainability, 13(4), 1992.Alcazar, J., & Bradford, T. (2021b) The Rise of Buy Now, Pay Later: Bank and Payment Network Perspectives and Regulatory Considerations, Payments System Research Briefing, (December 1, 2021), 1-6.

26. Ramnarayan, A. (2022) Europes Most Valuable Fintech Unicorn Klarna Faces Risk of Rising Rates. Bloomberg. https://www.bloomberg.com/news/articles/2022-02-09/buy-now-pay-later-unicorn-klarna-threatened-by-rising-ratesKwok, K. & Larsen, P. (2021, October 14) Breakdown: Buy Now, Pay Laters bill is coming due. Reuters. https://www.reuters.com/breakingviews/breakdown-buy-now-pay-laters-bill-is-coming-due-2021-10-14/

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-229-9
ISBN (Online)
978-1-83558-230-5
Published Date
28 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/64/20231515
Copyright
28 December 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated