Another bank signs on with Upstart
https://finance.yahoo.com/news/wsfs-bank-launches-digital-pe…
Cheers,
mpfdAC(Ret)
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Some background on WSFS:
WSFS Financial Corporation is a multi-billion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally managed bank and trust company headquartered in Delaware and the Greater Philadelphia region. As of June 30, 2021, WSFS Financial Corporation had $15.1 billion in assets on its balance sheet and $26.7 billion in assets under management and administration. WSFS operates from 112 offices, 89 of which are banking offices
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This is like with WPCCU’s partnership announcement (https://discussion.fool.com/i-am-continually-amazed-by-the-const…). WPCCU was featured on UPST’s leaders in lending podcast weeks before the press release.
WSFS was on that podcast a month ago (https://www.youtube.com/watch?v=qayjcjqqTec) and announced today.
Fingers crossed that other banks on the podcast will also be disclosed in the near future (sometimes they’re actually already partners if you check their personal loan or auto loan webpage, just with no press release).
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This is like with WPCCU’s partnership announcement (https://discussion.fool.com/i-am-continually-amazed-by-the-const…). WPCCU was featured on UPST’s leaders in lending podcast weeks before the press release. WSFS was on that podcast a month ago (https://www.youtube.com/watch?v=qayjcjqqTec) and announced today.
Hi Jon, I think in this case Upstart handled the announcement just right. It let the bank make the announcements to its customers and potential customers when it was ready, and had tested everything out and felt secure. That was good for the bank.
In fact, an individual announcement for each bank or credit union seems a lot better for them than just being included in a list of new banks added to Upstart. It helps make the banks and credit unions feel like the big wheels.
That’s the way I see it anyway.
Best, and thanks for all your work on the board,
Saul
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Hi Jon, I think in this case Upstart handled the announcement just right. It let the bank make the announcements to its customers and potential customers when it was ready, and had tested everything out and felt secure. That was good for the bank.
Saul,
I didn’t realize the official announcement was from WSFS and not originating from Upstart!
I saw it posted by Upstart’s linkedin page in the morning, and assumed the press release came from UPST.
If you look at Upstart’s Trustpilot reviews, the same day of the press release (yesterday, Sept 21) someone wrote a review (https://trstp.lt/1Ht0B47Cs) on a personal loan offered by WSFS and underwritten by UPST.
That’s definite revenue generated for UPST already!..except what’s very interesting, is on August 13, someone else wrote an Upstart Trustpilot review (https://trstp.lt/DvdAezQB0) on a personal loan offered by WSFS/upstart - that’s over a month prior to the announcement.
So clearly UPST has active bank partners that don’t want to make official announcements yet for one reason or the other, like you said perhaps feel like the big shot… (or they’re testing the waters first to make sure UPST’s AI doesn’t go berzerk or something)
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Jim Wechsler, Senior Vice President, Chief Retail Lending Officer at WSFS Bank. “With Upstart’s platform, we’re continuing our Delivery Transformation, an investment in our technology and delivery systems to meet the evolving needs of our Customers. Through this partnership, we’re providing a more affordable personal loan solution that meets the unique needs of our diverse communities across the Greater Philadelphia and Delaware region.”
I think it is extremely important that the bank made the announcement regarding its partnership with UPST. Every company desires to show they care about their customers. UPST’s platform allows this bank and other banks to demonstrate good faith (and toot their own horn) with their communities by providing more affordable consumer credit while minimizing discriminatory lending practices. The announcement implies they were pro-active in solving the problems associated with consumer credit in their communities.
Since every bank must demonstrate compliance in lending regulations, partnering with Upstart and letting Upstart demonstrate their AI/ML is in compliance should save money for the banks. This should be a huge selling point for the banks. This is similar to Crowdstrike detecting a cybersecurity issue with one customer and applying it to all customers. Each of these banks that partner with UPST can rely on UPST to stay in compliance. The compliance cost can be shared by all, thereby increasing profits.
In summary, I envision a large increase in adoption of UPSTs platform for the following reasons:
- Increased revenue (more loans; lower default rate; lower compliance costs)
- Great Publicity (appear pro-active in problem solving; don’t be left behind)
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