PayPal applies to become a bank under Trump's looser financial rules

PayPal, the online payment platform, has applied to become a bank in the United States. The company has submitted applications to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to establish PayPal Bank. PayPal is already a bank in Europe, based in Luxembourg, and has provided over $30 billion in loans and working capital to more than 420,000 business accounts globally. The company's focus is on supporting small businesses, as it believes securing capital remains a significant hurdle for their growth and scaling. The application comes under the Trump administration's looser financial regulations. The Office of the Comptroller of the Currency (OCC) has recently granted conditional approval to five cryptocurrency companies to become federally chartered trust banks. The OCC believes that new entrants into the federal banking sector are beneficial for consumers, the banking industry, and the economy, as they provide access to new products, services, and sources of credit. Other companies, such as Nissan and Sony, have also submitted applications to form a bank, reflecting the growing trend of technology and non-financial firms seeking to become banks in the US.