The slow but apparently steady march by Upstart to partner with banks is chugging along. I suspect it will still take many quarters to play out with these partnerships.
New bank partnership announced today with Upstart and Associated Bank.
Associated Banc-Corp is a U.S. regional bank holding company providing retail banking, commercial banking, commercial real estate lending, private banking, and specialized financial services. It is headquartered in Green Bay, Wisconsin, and is the largest bank (by asset size) headquartered in Wisconsin. It has over 220 banking locations serving more than 120 communities throughout Wisconsin, Illinois, and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio, and Texas. As of July 22, 2021, it had $34 billion in assets and is Wisconsin’s largest bank holding company.
And, the most recent video by Upstart with Apple Bank’s executive ($16 billion in asset and second largest state chartered bank in New York) showed multiple indications that since starting partnership in February this year, they are looking to deepen their relationship with Upstart across other product lines outside of personal loans:
“You know we are speaking to you guys about some of the other things that you’re working on outside of just a consumer installment- and we are speaking with you guys about perhaps figuring out a way to use your your AI to help us underwrite some of our consumer overdraft lines of credit, something that we not really offered in any aggressive way to our customers. We have a pretty simple underwriting process, but really feel as though under served our customers with just that kind of simple product.”
“i’m learning that there might be a market for auto refinance. Not everybody gets the 1.9 percent loan from their dealer and of course, there’s the whole refi market for student loans.
Your products been great. It’s been a great…Most of our customers have great experience whether it’s referral or not.”
“Well, you know, first of all, what your business brought us to is that you know the loan volume we’re seeing today, i think, is roughly 80 percent referral for your network and about 20 percent coming through our website portal, which doesn’t mean they’re all our existing customers….I am hoping I can convert an Upstart borrower into a depositor…there may be opportunities to cross sell”
“You guys have been very receptive to ideas we’ve had with respect to using your AI for some of the other things we’re doing, and i’m very pleased with the receptivity from your team on that and, frankly, just even not so much related to business development, but the transparency you have and the response we’ve had when we’ve had any kind of customer issue or something like that.”