The AI lending marketplace said the charter could simplify its operating structure and support nationwide lending, though FDIC and Federal Reserve approvals are still pending.
Upstart Holdings, Inc. said the Office of the Comptroller of the Currency (OCC, U.S. national bank regulator) has granted conditional approval for it to establish Upstart Bank, N.A., marking a key step in its plan to build what it described as the first nationally chartered bank created from the outset with AI-powered underwriting. The company said the charter would help reduce operational, regulatory and financial complexity for both Upstart and its third-party capital partners. The application was submitted in March 2026. Upstart said the proposed bank is expected to be based in Delaware, operate without physical branches, originate consumer loans nationwide and accept Federal Deposit Insurance Corporation (FDIC, U.S. bank deposit insurer) insured deposits once all approvals are secured. It added that banks, credit unions and institutional credit funds are expected to continue purchasing the vast majority of loans originated on its platform, with the bank intended to complement rather than replace those funding relationships. Co-Founder and CEO Paul Gu said the approval is an important milestone and that the company will keep working with the OCC, the FDIC and the Federal Reserve on the remaining steps. Chief Risk Officer Annie Delgado, who is also the proposed Chief Executive Officer of Upstart Bank, N.A., said the process had been both rigorous and timely. The company said its FDIC deposit insurance application and its application to the Federal Reserve to become a bank holding company remain pending, and that the bank will not begin operations until all required approvals are received and conditions tied to capitalization, governance and operational readiness are met.