Why the Upstart Referrel Network is superior to loan purchase programs

Many financial institutions (FIs) compare the Upstart Referral Network to loan purchase programs – and while the two share some similarities, the Upstart Referral Network creates the opportunity to acquire new customers or members, more precisely control credit policy, exceed loan volume goals and more.

Both the Upstart Referral Network and loan purchase programs allow FIs to expand into new asset classes quickly and build a sizable balance sheet with minimal investment in technology and marketing. However, the Upstart Referral Network differs from traditional loan purchase programs in a few crucial ways, resulting in tangible benefits for banks and credit unions.

Strengthening Brand Connection 

In traditional loan purchase programs, loans are originated by the original lender under their brand and sold into the secondary market after origination or to other banks or credit unions directly. In either scenario, banks and credit unions purchase and own the asset on their balance sheet, but they don’t own the customer or member relationship. This restricts the institution from cross-selling other products to that borrower.


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