The California fintech says creating a federally regulated bank would streamline its operations and deepen its role in consumer credit markets.

Upstart Holdings, the San Mateo, Calif.-based artificial intelligence lending platform, said it plans to apply for a national bank charter as the company seeks to expand its role in consumer lending and operate more directly within the traditional banking system.

The company this week announced it intends to submit applications to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to establish an insured national bank to be called Upstart Bank, N.A. The firm will also apply to the Federal Reserve to become a bank holding company.

If regulators approve the plan, the new institution would be led by Annie Delgado, Upstart’s chief risk officer, who has been proposed as chief executive of the bank.

The move would place more of the company’s lending activities under a federal regulatory framework and allow it to fund loans with deposits while continuing to operate its existing marketplace model. Upstart said the structure could simplify operations and lower certain costs tied to its current arrangements with partner institutions and capital providers.

“The time is right to launch the first bank built from the ground up on AI,” said Paul Gu, Upstart’s chief technology officer and incoming chief executive. “Applying for a bank charter is the natural evolution of our business as we’ve grown in size, scale, and product offerings. This will allow us to save borrowers even more time and money, and streamline our partnerships with banks, credit unions, and institutional credit funds.”

Upstart operates a marketplace that connects consumers seeking credit with more than 100 banks and credit unions that use its artificial intelligence models to assess borrowers. The company says its technology can help lenders approve more applicants at lower interest rates while automating much of the underwriting process. More than 90% of loans on the platform are fully automated, according to the company.

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Delgado said greater regulatory engagement would be central to the company’s next phase. “AI-based lending is the future of credit,” she said. “As more and more lenders are looking to adopt AI tools for these critical functions, engagement with regulators is critical. If approved, we look forward to working directly with the OCC, FDIC and the Fed to set the standard for modern AI model deployment within the banking system.”

Executives emphasized that the company does not intend to compete directly with its partner institutions for everyday banking customers. “Banks, credit unions, and institutional funds will continue to be the capital source for the vast majority of all loans originated on the Upstart platform,” said Sanjay Datta, the company’s president and chief capital officer. “We are not seeking to compete with our depository partners for local customer deposits and checking accounts.”

Upstart worked with advisory firm Klaros Group in preparing its charter application.

The proposed bank comes as financial technology companies increasingly explore national charters. At least 18 applications were filed with the OCC last year, with several more arriving in 2026. Last week, British neobank Revolut said it had filed to become a national bank in the United States.

At the same time, regulators have continued to approve a small number of new credit unions.

The National Credit Union Administration announced in December that it granted a federal charter and share insurance coverage to Haven Federal Credit Union in Santa Clara, Calif., marking the third new federal credit union approved last year. No new federal charters have yet been granted in 2026.

For Upstart, a bank charter would represent a significant step in bringing its artificial intelligence lending model further into the mainstream of the regulated banking system.

“AI-based lending is the future of credit.”

– Annie Delgado
Chief Risk Officer
Upstart