Upstart stock price rises due to application for banking license plan

LootboxPhobia · 2026-03-10T22:24:47+00:00

Upstart Holdings stock price increased by 2.25%, planning to apply for a national banking license to establish Upstart Bank, N.A. This move will reduce operating costs and subject lending activities to federal regulation, offering lower loan costs and more opportunities. Chief Risk Officer Annie Delgado will serve as CEO.

LootboxPhobia

2026-03-10 22:24:47

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Investing.com – Upstart Holdings (NASDAQ:UPST) stock rose 2.25% in after-hours trading on Tuesday after the company announced plans to apply for a national banking license.

The AI lending platform said it will submit applications to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to establish Upstart Bank, N.A. Upstart Holdings will also seek approval from the Federal Reserve to become a bank holding company.

Subject to regulatory approval, the license will enable Upstart to reduce operational, regulatory, and financial costs and complexities for itself and its third-party capital sources. Upstart Chief Risk Officer Annie Delgado has been nominated as CEO of Upstart Bank.

The company stated that the national banking license will place its lending activities under federal prudential regulation. Upstart Bank will be able to accept deposits and lend directly to consumers through a single, consistent rate and fee structure, potentially resulting in lower costs and more lending opportunities in certain jurisdictions.

Upstart said that banks, credit unions, and institutional funds will continue to be the primary sources of capital for most loans issued on its platform. The company also clarified that it does not seek to compete with deposit partners for local customer deposits and checking accounts.

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