Upstart (UPST) Applies for National Bank Charter

Upstart Holdings Inc. (NASDAQ:UPST) is among the 10 best non-tech stocks to buy and hold for 5 years. On March 10, Upstart Holdings Inc. (NASDAQ:UPST) announced that it plans to submit an application to establish an insured national bank, to be named Upstart Bank NA. The AI lending marketplace will apply to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) for the bank charter. The company will also seek approval from the Federal Reserve to become a bank holding company.

Upstart Holdings Inc. (NASDAQ:UPST) said the charter would allow it to reduce operational, regulatory, and financial costs for itself and third-party capital sources. Annie Delgado, Upstart’s Chief Risk Officer, is the proposed Chief Executive Officer of Upstart Bank NA. The strategic shift comes at a time when Upstart Holdings Inc.’s (NASDAQ:UPST) liquid assets exceed its short-term obligations, and it has an 82% gross profit margin. Paul Gu, Upstart Holdings Inc. (NASDAQ:UPST)’s Chief Technology Officer and incoming CEO, said the application represents the natural evolution of our business as we’ve grown in size, scale, and product offerings.

Upstart Holdings Inc (NASDAQ:UPST) operates a cloud-based artificial intelligence lending platform that processes unsecured personal loans, small-dollar loans, HELOCs, and auto refinance and auto retail loans.

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