Fintech company Upstart Holdings said on July 23 that it received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish Upstart Bank, N.A.
The charter would allow Upstart, a leading artificial intelligence (AI) lending marketplace, to reduce operational, regulatory, and financial complexity for itself as well as for its third-party capital partners. It represents a key milestone toward operating the first nationally chartered bank built from the ground up with AI-powered underwriting.
“Conditional approval from the OCC is an important milestone for Upstart Bank and we will continue to work with the OCC, the FDIC, and the Federal Reserve on the remaining steps,” Paul Gu, Upstart’s co-founder and CEO, said. “Upstart Bank will allow us to lower the cost of lending and bring our full product offering to all 50 states, advancing our mission to radically reduce the cost and complexity of credit for all Americans.”
Upstart submitted its application to the OCC in March 2026. Upstart’s applications to the FDIC for deposit insurance and to the Federal Reserve to become a bank holding company remain pending.
“It’s important for the public to understand that efficiency doesn’t diminish oversight,” Annie Delgado, Upstart’s chief risk officer and the proposed CEO of Upstart Bank, said. “A well-run charter process can be both timely and rigorous. We’ve been challenged extensively throughout the process, and that’s exactly what should happen when an institution is seeking the privilege of becoming a national bank.”
Upstart Bank is expected to be based in Delaware and will not have physical branches. It will be able to originate loans to consumers nationwide and accept Federal Deposit Insurance Corporation (FDIC) insured deposits. Banks, credit unions, and institutional credit funds are expected to continue to purchase the vast majority of loans originated on the Upstart platform. Upstart Bank is intended to complement, not replace, these funding partnerships.
Upstart Bank will not commence operations until all required approvals are received and the conditions of the OCC’s approval are satisfied. These conditions include capitalization, governance, and operational readiness requirements customary for de novo national bank charters.