On March 10, 2026, Upstart Holdings, Inc. (NASDAQ: UPST) announced that it will submit an application to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to establish an insured national bank, Upstart Bank, N.A. The company also plans to seek approval from the Federal Reserve to become a bank holding company.
The move is intended to reduce operational, regulatory, and financial costs and complexity for Upstart and its third‑party capital partners by allowing the company to hold deposits and lend directly to consumers under a single rate and fee structure. "The time is right to launch the first bank built from the ground up on AI. Applying for a bank charter is the natural evolution of our business as we've grown in size, scale, and product offerings. This will allow us to save borrowers even more time and money, and streamline our partnerships with banks, credit unions, and institutional credit funds," said Paul Gu, Upstart’s Chief Technology Officer and incoming CEO.
Upstart’s Q4 2025 earnings, released February 10, 2026, showed revenue of $296 million, a 35 % year‑over‑year increase, and earnings per share of $0.17, beating analyst expectations of $0.15. The revenue mix was dominated by platform and referral fees ($222 million), followed by servicing fees ($43 million) and net interest income/fair value adjustments ($31 million). The earnings beat was driven by strong demand for the company’s AI‑powered lending platform and disciplined cost management.
The announcement comes amid a broader trend of fintech and technology firms seeking national bank charters, including Revolut, PayPal, Checkout.com, and affirm. Upstart has engaged advisors Klaros Group to prepare its application, positioning the company to leverage its AI expertise within a regulated banking framework.
Annie Delgado, Upstart’s Chief Risk Officer and proposed CEO of Upstart Bank, N.A., said, "AI‑based lending is the future of credit. As more and more lenders are looking to adopt AI tools for these critical functions, engagement with regulators is critical. If approved, we look forward to working directly with the OCC, FDIC and the Fed to set the standard for modern AI model deployment within the banking system." Sanjay Datta, Upstart’s President and Chief Capital Officer, added, "Banks, credit unions, and institutional funds will continue to be the capital source for the vast majority of all loans originated on the Upstart platform. We are not seeking to compete with our depository partners for local customer deposits and checking accounts."
By becoming a national bank, Upstart aims to streamline its lending operations, reduce regulatory fragmentation, and provide a more consistent rate and fee structure to consumers. The move also signals the company’s confidence in its AI platform’s scalability and its readiness to operate within the traditional banking ecosystem, potentially opening new avenues for deposit growth and capital deployment.
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