PayPal Applies to Become a Bank as US Loosens Regulatory Reins

PayPal Holdings Inc. applied to become a bank in the US, looking to take advantage of the Trump administration’s openness to financial-technology companies entering the banking system.

The payments-focused firm submitted applications to the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions to form a Utah-chartered industrial loan company, PayPal said in a statement Monday.

If approved, PayPal Bank would help the firm bolster its small-business lending capabilities, according to the statement, which said the company has provided access to more than $30 billion in loans and capital since 2013.

CEO Alex Chriss

Photographer: Dhiraj Singh/Bloomberg

“Securing capital remains a significant hurdle ...