Klarna Drives Credit Innovation with AI-Powered Personalization

Rishad Al Islam

•3 min read
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Client Overview

Klarna is a global payments and shopping platform with over 150 million users. It provides buy-now-pay-later (BNPL) services and personalized finance tools across Europe, the U.S. and Australia.

Challenges

Klarna needed to better balance user experience with responsible lending and fraud detection.

  • Traditional credit scoring models lacked personalization
  • Rising costs from false positives in fraud detection
  • Inconsistent targeting in marketing campaigns

Solution

Klarna built a suite of AI finance tools to handle everything from identity verification to personalized marketing.

  • Applied AI to real-time credit scoring based on behavior
  • Used anomaly detection to identify fraudulent signals
  • Integrated GPT-powered systems for tailored user messaging

Business Impact

AI improved approval rates and reduced friction across the customer journey.

  • Increased credit approval accuracy by 30%
  • Lowered fraud losses by over €40M
  • Boosted marketing conversion rates by up to 35%

Client Testimonials

“AI allows us to serve more customers - safely and fairly - while staying efficient.” - David Fock, Chief Product Officer, Klarna

“We’ve moved from guesswork to precision when it comes to fraud and user intent.” - Head of Customer Insights