PayPal has filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish a bank. This new entity, named PayPal Bank, would be classified as a Utah-chartered industrial loan company. Such companies can lend money, hold FDIC-insured deposits, and can be owned by non-financial institutions like PayPal. The move aims to streamline PayPal's lending operations, particularly for small businesses. The company has already provided over $30 billion in loans and working capital to more than 420,000 business accounts since 2013. By establishing its own bank, PayPal seeks to reduce dependency on third-party lenders, thus enhancing its efficiency in offering loans and savings accounts to its customers. This aligns with a broader trend where payment companies are attempting to carve out a space within the banking sector.