PayPal Applies To Become a Bank As US Loosens Regulatory Reins

PayPal has applied to become a US bank by forming a Utah-chartered industrial loan company, signaling a push to deepen its financial services 'as companies rush to capitalize on a friendly regulatory environment under the Trump administration,' reports Reuters. From the report: If approved, the move will help PayPal to strengthen its lending offerings to small businesses in the U.S. as well as reduce its reliance on third parties. 'Securing capital remains a significant hurdle for small businesses striving to grow and scale,' said PayPal CEO Alex Chriss. 'Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the U.S.'

PayPal also plans to offer interest-bearing savings accounts to customers. The company has provided over $30 billion in loans and capital since 2013, it said. PayPal has selected Mara McNeill to serve as PayPal Bank's president. She comes with over two decades of experience in banking and commercial lending, and has previously served as the CEO of Toyota Financial Savings Bank.

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