Overview
- Upstart said it will file applications with the OCC and FDIC to establish Upstart Bank, N.A., and with the Federal Reserve to become a bank holding company.
- Chief Risk Officer Annie Delgado is the proposed CEO of the planned bank, while incoming company CEO Paul Gu cast the move as building a bank designed around AI.
- The company said a national charter could reduce operational, regulatory, and financial costs and enable deposit-funded lending under a single rate and fee structure.
- Upstart stated that banks, credit unions, and institutional funds will remain the main capital sources on its platform, and it is not pursuing partners’ local deposit relationships.
- Shares rose about 2.3% in after-hours trading following the announcement, according to Benzinga Pro, and Upstart worked with Klaros Group on its application.