Upstart Gains Conditional Approval for National Bank Charter
Upstart has received conditional approval for its banking operations, a notable step following an application submitted in March. This development was announced on Thursday, July 23, signaling progress toward opening a nationally chartered bank.
The application is currently with the Federal Deposit Insurance Corporation (FDIC) for deposit insurance. Meanwhile, the transition to a bank holding company is still under consideration.
Co-founder and CEO Paul Gu stated that Upstart will keep collaborating with the Office of the Comptroller of the Currency (OCC), FDIC, and Federal Reserve to finalize the remaining requirements. He expressed that “Upstart Bank allows us to lower our lending costs and offer a full range of products to all 50 states,” emphasizing the aim to simplify credit access for Americans.
Annie Delgado, Upstart’s chief risk officer and the proposed CEO for Upstart Bank, noted that the approval process can be lengthy and thorough without compromising oversight. “We have faced substantial challenges throughout the process, which is necessary when an institution seeks national bank status,” she remarked.
When Upstart revealed its intention to apply for a banking license in March, Gu described the timing as ideal to “launch the first bank built from the ground up based on AI.” He added that pursuing a banking license aligns with their growth in size and product offerings, aiming to save borrowers time and money while enhancing collaborations with banks and credit unions.
In a press release, Upstart clarified that despite not having physical branches, Upstart Bank can provide loans to consumers nationwide, accept FDIC-insured deposits, and enhance their existing financing partnerships instead of substituting them.
Reports from February 2025 mentioned that several fintech companies are opting to secure their own banking licenses, with expectations of increased interest as the application process is being revamped to facilitate smoother approvals.
