Upstart Receives Conditional OCC Approval for Bank Charter

Lending marketplace Upstart has received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a bank called Upstart Bank, N.A.

The conditional approval follows Upstart’s application submitted in March and marks a key milestone in the company’s efforts to operate a nationally chartered bank, the company said in a Thursday (July 23) press release.

Upstart’s applications to the Federal Deposit Insurance Corporation (FDIC) for deposit insurance and to the Federal Reserve to become a bank holding company are still pending, per the release.

Paul Gu, co-founder and CEO of Upstart, said in the release that the company will continue to work with the OCC, the FDIC and the Federal Reserve to complete the remaining steps.

“Upstart Bank will allow us to lower the cost of lending and bring our full product offering to all 50 states, advancing our mission to radically reduce the cost and complexity of credit for all Americans,” Gu said.

Annie Delgado, chief risk officer at Upstart and proposed CEO of Upstart Bank, said in the release that a charter process can be both timely and rigorous, without diminishing oversight.

“We’ve been challenged extensively throughout the process, and that’s exactly what should happen when an institution is seeking the privilege of becoming a national bank,” Delgado said.

When Upstart announced in March that it was seeking a banking charter and had submitted applications, Gu said the time was 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,” Gu said. “This will allow us to save borrowers even more time and money, and streamline our partnerships with banks, credit unions and institutional credit funds.”

In its Monday press release, Upstart reiterated that Upstart Bank will not have physical branches, will be able to originate loans to consumers nationwide, will accept FDIC insured deposits, and will complement, not replace, the Upstart platform’s funding partnerships.

PYMNTS reported in February 2025 that some FinTechs had opted to gain their own banking licenses and that with a push to overhaul the application process to offer a smoother path toward getting those licenses, more FinTech may opt for that strategy.