Upstart receives conditional approval from the OCC to establish Upstart Bank

Upstart Holdings, Inc. (NASDAQ: UPST) has received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish Upstart Bank, N.A. This follows the fintech’s announcement in March 2026 of its intent to apply for a national bank charter, which would allow it to operate under a single federal regulatory framework and reduce operational and financial complexity. The approval marks a significant step in Upstart’s evolution from an AI-powered lending platform to a fully licensed bank.

Upstart’s application also includes submissions to the Federal Deposit Insurance Corporation (FDIC) for deposit insurance and to the Federal Reserve for approval as a bank holding company. If fully approved, the charter would enable Upstart to offer loans directly to consumers and access deposit funding, potentially lowering borrowing costs for customers and increasing lending opportunities.

Annie Delgado, Upstart’s Chief Risk Officer and proposed CEO of Upstart Bank, emphasized the importance of regulatory collaboration in advancing AI-based lending. “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,” she stated.

Upstart, which returned to profitability in 2025 with $1 billion in revenue, has maintained that it does not intend to compete with its 100+ banking partners for deposits or checking accounts. Instead, it plans to continue sourcing loan capital from banks, credit unions, and institutional funds. The fintech also noted that it will use brokered deposits and other retail offerings to fund its bank without disrupting its lending partners.

The move aligns with a broader trend of fintechs seeking national bank charters to streamline operations and expand services. Upstart’s conditional approval from the OCC underscores the growing regulatory interest in AI-driven financial innovation.