Upstart Secures Bank Charter and $4 bn Loan Funding Deal

Upstart Holdings Inc., an AI‑driven lending marketplace, received conditional approval from the U.S. Office of the Comptroller of the Currency to establish Upstart Bank, N.A. The new national bank will be headquartered in Delaware, have no physical branches and aim to lower the cost of credit while expanding its product suite across all 50 states. Co‑founder and CEO Paul Gu said the approval is a key milestone, and chief risk officer Annie Delgado noted that a rigorous charter process is essential for a well‑run bank.

In a related development, Upstart signed a multi‑year forward‑flow agreement with alternative‑investment firm Castlelake. The agreement allows Castlelake to purchase up to $4 billion of consumer loans originated on Upstart’s platform over a period of up to 24 months, marking the largest program between the two firms. Upstart’s platform, which automates more than 90 % of loan underwriting, includes personal, automotive, home‑equity and revolving credit products. Executives from both companies cited confidence in Upstart’s underwriting capabilities and the durability of its loan portfolio.