Upstart joins White House-led Economic Opportunity Coalition, shares AI technology with minority lenders and community banks
SAN MATEO, CA (July 28, 2022) — Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, today announced it will provide preferred access to its AI lending platform with no implementation fees for all Community Development Financial Institutions (CDFIs) nationwide, which complements its existing commitment to Minority Depository Institutions (MDIs) with the National Bankers Association. The announcement coincides with Upstart becoming a founding member of the Economic Opportunity Coalition, a new group partnering with the Biden-Harris Administration focused on helping find solutions to advance economic equity in the United States.
The Coalition, which counts Ford Foundation, Google, and Bank of America among its founding members, ensures that federal investments designed to close the racial wealth gap reach the places of highest need. Two of the four pillars are “Investing in CDFIs and MDIs” and “Expanding inclusive and equitable access to credit and other financial services facilitating financial health.” Hundreds of MDIs and CDFIs will now be able to use Upstart’s AI-driven credit decisioning model to scale direct credit access to consumers and small businesses in their communities and regions.
Upstart’s commitment builds on an existing partnership with members of the National Bankers Association, the association for minority-owned and women-owned banks, to provide advanced digital lending technology and the ability to reach new customers economically and online.
“As a founding participant in the Economic Opportunity Coalition, we are proud to help MDIs and CDFIs thrive by offering fairer, more accurate, and seamless consumer loans as customer expectations are evolving rapidly,” said Nat Hoopes, Vice President and Head of Public Policy and Regulatory Affairs at Upstart, at the Coalition’s launch event with Vice President Kamala Harris. “MDIs and CDFIs offer critical access to credit that is fundamental to economic mobility in the United States, and Upstart’s AI technology provides a unique opportunity to unlock credit where it is often needed most.”
Upstart (NASDAQ: UPST) is a leading AI lending platform partnering 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 exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by ex-Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.