“Can a creator-economy credit card evolve into the primary business bank for the next generation of SMBs?”
Founded 2019 as a creator-economy fintech — the original wedge was a business credit card for YouTubers and streamers underwritten on social metrics rather than FICO. By 2023 Karat had broadened into a full banking + payments platform (checking, tax ATP accounts, invoicing, global contractor payouts) and by 2026 was explicitly marketing to SMBs beyond creators, positioning itself as a one-stop financial OS for small businesses that outgrew traditional banks.
Karat Financial discloses Grasshopper Bank, N.A. as its banking provider, with Cross River Bank as its sponsor bank, according to the Embedded Finance Index 2026.
Karat Financial does not disclose a bank charter of its own; its banking services are provided through Cross River Bank.
Karat Financial's cards run on Visa.
Karat Financial's lending and capital products are provided by Cross River Bank (issuer of Karat Visa Business Credit Card).
The Embedded Finance Index 2026 maps 4 layers in Karat Financial's stack: Banking / BaaS (Grasshopper Bank, N.A.); Card network (Visa); Lending (Cross River Bank (issuer of Karat Visa Business Credit Card) and Karat Charge Card / Karat Visa Business Credit Card — underwritten on business cash flows plus social metrics, not FICO alone); Sponsor bank (Grasshopper Bank, N.A. and Cross River Bank).
Karat Financial was founded by Eric Wei and Will Kim and is founded in 2019, headquartered in Los Angeles, California, United States.
Karat Financial has raised $100.7M in total (latest round: Series B + Debt, 2023).
Get a read on where your own stack stands against Karat Financial and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.