Upstart and National Bankers Association Partner to Provide AI Lending Technology to Minority-Owned Banks
WASHINGTON & SAN MATEO, California, December 09, 2021– (BUSINESS WIRE) – Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending platform, and the National Bankers Association (NBA) today announced a partnership to improve the ‘Access to affordable credit for clients of depositories belonging to minority institutions (MDI) through a single agreement to use the Upstart AI lending platform.
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Quote from Nicole Elam, President and CEO of the National Bankers Association (Graphic: Upstart)
The NBA represents the country’s MDIs, banks majority owned or operated by people of color, located primarily in communities of color. These minority-owned banks are essential for enabling economic mobility in various communities by providing access to credit, often when other financial institutions do not.
The partnership with Upstart will provide MDIs with cutting edge digital lending technology and the ability to provide smaller personal loans cost-effectively to their communities. Smaller loan amounts can help borrowers recover from short-term setbacks without paying exorbitant interest rates to payday lenders that can quickly turn into cycles of debt.
âWe applaud Upstart’s commitment to working with us to find ways to take out smaller personal loans in an efficient, affordable and user-friendly manner,â said Nicole Elam, president and CEO of the NBA. âAccess to advanced and innovative technologies will not only help our member banks meet the needs of their communities, but also be more competitive as all banking operations become increasingly digital. “
As part of the partnership, Upstart will offer NBA members special implementation rates, custom minimum volumes and unit rates on small loans.
“By providing better access to credit in low to moderate income communities, minority-owned NBA banks play a vital role in helping to close the racial wealth gap in America,” said Nat Hoopes, vice -President and responsible for public policy and regulation. Business at Upstart. âWe know that access to credit is fundamental for economic mobility and working with Nicole and the NBA Innovation Committee is a unique opportunity to unlock credit where it is often needed most. “
Upstart also offers NBA member banks access to the Upstart referral network. Thanks to the Upstart referral network, individuals come to upstart.com to apply for a personal loan. When a qualified user requests a loan, they are matched and displayed with a lending partner’s credit offers and seamlessly transition to complete their request and close process with that lending partner. This will allow MDIs to take advantage of the reach of Upstart’s marketing programs to find and serve additional customers.
Optus Bank will be the NBA’s chartered member bank to implement the new program offering Upstart-powered personal loans directly through its bank’s website, as well as through the Upstart referral network.
âOur mission is to help close the wealth gap and provide credit that might not otherwise be available, but the cost of offering small dollar loans often outweighs any possible return. Said Dominik Mjartan, president and CEO of Optus Bank, one of 20 owned by US banks and chairman of the NBA innovation committee. âWorking with Upstart gives us a way not only to offer personal loans more economically, but also to find new customers and introduce them to mission-driven banks. “
The National Bankers Association and Upstart are also member organizations of the REACh Currency Project Controller Office and participants in the Minority Depository Institution (MDI) work program that addresses the challenges facing privately owned banks. minorities to access capital, expand technological capabilities and modernize infrastructure.
About the National Bankers Association
Founded in 1927 as the National Negro Bankers Association, the National Bankers Association has today expanded its membership to include Hispanic, Asian American, Native American, and female-owned banks. Recognized as the voice of minority banks in America, the NBA’s mission is to create an inclusive financial services industry and vibrant business environment for minority financial institutions, their customers, and the communities they serve. The National Bankers Community Alliance is a 501 (c) (3) nonprofit affiliate of the NBA that provides programs and services to support Minority Depository Institutions (MDIs) and the communities they serve. Member banks are located in twenty-two states and the District of Columbia. For more information, please visit NationalBankers.org.
Upstart (NASDAQ: UPST) is a leading AI lending platform that partners with banks and credit unions to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks and credit unions can have higher approval rates and lower loss rates, while simultaneously delivering the experience of exceptional digital loan demanded by their customers. Over two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by former Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.
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National Bankers Association