PayPal (PYPL.US) applies for a license to “transform” a bank to focus on increasing small business loans

The Zhitong Finance App learned that PayPal Holdings (PYPL.US) announced on Monday that it has submitted applications to the US Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions to establish a Utah Franchised Industrial Loan Company. The move is aimed at expanding its loan services for small businesses.

The company said in a statement that since 2013, it has provided more than US$30 billion in loans and financial support to small businesses.

PayPal CEO Alex Chris said in a statement: “The establishment of PayPal Bank will strengthen our business system, improve operational efficiency, and enable us to better support the development of small businesses across the US and create more economic opportunities for them.”

The application comes at a time when US federal regulators are easing relevant regulations to encourage credit issuance and financial innovation. Last week, five digital asset companies, including Circle (CRCL.US) and Ripple, received approval for national banking licenses.

In addition to the small business loan business, PayPal Bank also plans to provide customers with interest-bearing savings account services, and is seeking direct membership in the Bank of America card organization to supplement the transaction processing and settlement business under the existing partnership.

Mara McNeill, who has over 25 years of experience in banking, commercial loans, and private equity, has been appointed as the president of PayPal Bank. Prior to joining PayPal, she was the president and CEO of Toyota Financial Savings Bank.