First National Bank of Omaha Leverages AI Platform to Scale Personal Loan Program

First National Bank of Omaha (FNBO) has broadened its collaborative effort with artificial intelligence (AI) lending platform Upstart to expand access to its personal loan program, according to a Wednesday (Dec. 8) press release. 

The expansion follows a successful pilot program with Upstart in 2019. During the trial effort, the program’s approval rates and loss rates met or surpassed expectations, the bank said in the announcement. 

As part of its joint effort with Upstart, FNBO has approved more borrowers, with 78% of loans approved instantly.

“FNBO is focused on delivering modern capabilities to our consumers that make capital more accessible and help them with their credit needs,” said Marc Butterfield, senior vice president of Innovation and Disruption at First National Bank of Omaha. “We are expanding our program with Upstart so that more people nationwide can get personal loans they need with higher approval rates through a modern all-digital experience enabled by AI.” 

Through the Upstart Referral Network, individuals apply for a personal loan at upstart.com. Approved applicants are then matched with FNBO credit offers. 

In addition to expanding personal loan offerings, FNBO announced last week a partnership with global card issuing company Marqeta to roll out modern card offerings for FNBO customers, according to PYMNTS.  

Read more: Marqeta Teams Up with First National Bank of Omaha 

In September, the bank launched a buy now, pay later (BNPL) offering to allow its retail partners the choice to allow customers to buy goods and make installment payments, from as little as a few weeks to as long as 10 years, according to PYMNTS. 

See also: First National Bank of Omaha Rolls out BNPL Offering 

FNBO is a subsidiary of First National of Nebraska. The bank, which has more than $25 billion in assets and close to 5,000 employees, operates offices in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas. 

Upstart, which was founded in 2012, is seeing exponential growth, according to PYMNTS. The company reported a 250% increase in revenue year-over-year to $228.4 million in the third quarter. 

Read also: Upstart’s Triple-Digit Growth Shows AI-Based Lending’s Heady Pace