Upstart Holdings Submits Application to Establish Upstart Bank
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy UPST?
Last night, Upstart Holdings announced its plan to submit an application to the Office of the Comptroller of the Currency, or OCC, and the Federal Deposit Insurance Corporation, or FDIC, to establish an insured national bank, Upstart Bank, N.A. Upstart Holdings will also apply to the Federal Reserve for approval to become a bank holding company. Subject to regulatory approval, the charter will allow Upstart to reduce operational, regulatory, and financial costs and complexity for itself as well as for its third-party capital sources. Annie Delgado, Upstart's chief risk officer, is the proposed CEO of Upstart Bank.
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Analyst Views on UPST
Wall Street analysts forecast UPST stock price to rise
13 Analyst Rating
7 Buy
4 Hold
2 Sell
Moderate Buy
Current: 28.160
Low
20.00
Averages
56.73
High
80.00
Current: 28.160
Low
20.00
Averages
56.73
High
80.00
About UPST
Upstart Holdings, Inc. is an artificial intelligence (AI) lending marketplace. The Company’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit (HELOCs), and small dollar loans. It applies artificial intelligence models and cloud applications to the process of underwriting consumer credit. Its AI marketplace connects consumers with its lending partner. Its consumers can access Upstart-powered loans via Upstart.com, through a lender-branded product on its lending partners’ own websites, and through auto dealerships that use its Upstart Auto Retail software. Its platform enables lenders provide a product their customers want, rather than letting customers seek loans from competitors. Its cloud-based software platform incorporates technologies and software development approaches to allow for development of new features, such as cloud-native technologies, data integrity and security, and configurable multi-tenant architecture, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2026-1
- Securitization Scale: Upstart Securitization Trust 2026-1 issues asset-backed securities totaling $292.21 million, marking the company's 49th securitization of loans through its online platform, demonstrating its ongoing market activity and financing capability.
- Credit Enhancement Levels: The preliminary ratings indicate credit enhancement levels of 60.65% for Class A-1 and A-2 notes, 46.85% for Class B notes, 35.90% for Class C notes, and 20.50% for Class D notes, highlighting the risk differentials faced by investors across various risk tiers.
- Collateral Pool Composition: As of the February 3, 2026 statistical cutoff date, the collateral pool for UPST 2026-1 will include approximately $365.3 million in loans, with auto secured personal loans comprising about 2.5%, reflecting the diversity of its loan portfolio and risk management strategies.
- Methodology Application: KBRA applied its Consumer Loan ABS Global Rating Methodology and ESG Global Rating Methodology during the rating process, alongside operational reviews and periodic update calls with Upstart, ensuring the accuracy and reliability of the ratings.
See More
Oracle and Papa John's Stocks Surge Amid Strong Earnings and Takeover Bid
- Oracle's Strong Earnings: Oracle's stock surged 10% after reporting fiscal third-quarter results that exceeded expectations, raising its fiscal 2027 revenue outlook by $1 billion to $90 billion, significantly above analysts' estimates of $86.6 billion, indicating robust growth potential in its cloud infrastructure business.
- Papa John's Takeover Bid: Shares of Papa John's jumped 18% following a $1.5 billion takeover bid from Irth Capital Management, offering $47 per share, a 50% premium over the stock price prior to the announcement, which could significantly alter the company's capital structure and market positioning.
- Campbell's Disappointing Results: Campbell's stock fell over 7.5% after its fiscal second-quarter earnings missed analyst expectations, with snack sales down 6% and U.S. soup sales down 4%, leading to a 23-year low in stock price, reflecting market concerns about its future growth prospects.
- Nebius Group's Investment Boost: Nebius Group's shares rose 15% after Nvidia announced a $2 billion investment to enable Nebius to deploy over 5 gigawatts of AI cloud capacity by the end of 2030, enhancing Nvidia's AI infrastructure buildout and demonstrating strong confidence in the AI sector.
See More
Oracle Shares Surge After Strong Q3 Results and Revenue Guidance Lift
- Strong Earnings Report: Oracle reported robust fiscal third-quarter results, raising its revenue outlook for fiscal 2027 to $90 billion, an increase of $1 billion, surpassing analyst expectations of $86.6 billion, indicating strong growth potential in the cloud infrastructure sector.
- Stock Price Surge: Following the strong earnings report, Oracle's shares jumped over 9%, reflecting market optimism regarding its future growth prospects and bolstering investor confidence in the cloud computing market.
- AeroVironment's Weak Performance: Drone manufacturer AeroVironment reported adjusted earnings of 64 cents per share and revenue of $408 million for the third quarter, both falling short of analyst expectations of 69 cents and $476 million, leading to a 10% drop in its stock price, highlighting concerns about its profitability.
- Cadre Holdings' Earnings Miss: Cadre Holdings reported fourth-quarter earnings of 27 cents per share, significantly below the 40 cents expected by analysts, with revenue of $167.2 million also missing the forecast of $182.9 million, resulting in a nearly 9% decline in its stock price, reflecting market disappointment in its performance.
See More
Pomerantz LLP Investigates Securities Fraud Claims Against Upstart Holdings
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of Upstart Holdings, Inc. investors, focusing on whether the company and its executives engaged in securities fraud or other unlawful business practices, highlighting serious concerns over corporate governance.
- Performance Decline: On November 5, 2025, Upstart disclosed that it missed third-quarter expectations primarily due to its Model 22 underwriting system reducing borrower approval and conversion rates, leading to a loss of investor confidence.
- Stock Price Plunge: Following the disappointing performance news, Upstart's stock price fell sharply, directly harming investors and reflecting a pessimistic outlook on the company's future growth prospects.
- Legal Action: Pomerantz LLP, recognized as a leading firm in securities class action litigation, is providing support to affected investors, demonstrating its strong commitment to protecting investor rights.
See More
Upstart Holdings Seeks National Bank Charter Approval
- National Bank Charter Application: Upstart Holdings announced plans to apply for a national bank charter with the OCC and FDIC, marking its evolution as a fintech and aiming to enhance borrower experiences while streamlining partnerships with banks and credit unions.
- Stock Price Surge: Upstart's shares rose 4.05% to $29.30 in after-hours trading on Tuesday, reflecting positive market sentiment regarding its bank charter application, which may bolster investor confidence and enhance future financing capabilities.
- Executive Transition: Chief Risk Officer Annie Delgado is set to become the CEO of Upstart Bank, indicating a strategic shift towards banking operations, with expectations to leverage expertise in AI model deployment to modernize banking practices.
- Strategic Partnership Outlook: CTO Paul Gu stated that obtaining a bank charter will allow Upstart to save borrowers time and money while simplifying collaborations with banks, credit unions, and institutional credit funds, further solidifying its market position in the fintech sector.
See More
Upstart Plans to Apply for National Bank Charter
- Bank Charter Application: Upstart plans to submit an application to the OCC and FDIC to establish an insured national bank, marking a natural evolution of its business aimed at saving borrowers time and money through an AI-built bank.
- Strategic Leadership Change: Upstart's Chief Risk Officer Annie Delgado has been nominated as the CEO of Upstart Bank, indicating a strategic adjustment in leadership to support the expansion of its banking operations.
- Stock Price Increase: After market close, Upstart shares rose by 2.27%, trading at $28.16, reflecting positive market sentiment towards its bank charter plans, which may further boost investor confidence.
- Cost Reduction: By applying for a bank charter, Upstart expects to reduce operational and regulatory costs, streamlining partnerships with banks, credit unions, and institutional credit funds, thereby enhancing overall business efficiency and market competitiveness.
See More
KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2026-1
- Securitization Scale: Upstart Securitization Trust 2026-1 issues asset-backed securities totaling $292.21 million, marking the company's 49th securitization of loans through its online platform, demonstrating its ongoing market activity and financing capability.
- Credit Enhancement Levels: The preliminary ratings indicate credit enhancement levels of 60.65% for Class A-1 and A-2 notes, 46.85% for Class B notes, 35.90% for Class C notes, and 20.50% for Class D notes, highlighting the risk differentials faced by investors across various risk tiers.
- Collateral Pool Composition: As of the February 3, 2026 statistical cutoff date, the collateral pool for UPST 2026-1 will include approximately $365.3 million in loans, with auto secured personal loans comprising about 2.5%, reflecting the diversity of its loan portfolio and risk management strategies.
- Methodology Application: KBRA applied its Consumer Loan ABS Global Rating Methodology and ESG Global Rating Methodology during the rating process, alongside operational reviews and periodic update calls with Upstart, ensuring the accuracy and reliability of the ratings.
See More
Oracle and Papa John's Stocks Surge Amid Strong Earnings and Takeover Bid
- Oracle's Strong Earnings: Oracle's stock surged 10% after reporting fiscal third-quarter results that exceeded expectations, raising its fiscal 2027 revenue outlook by $1 billion to $90 billion, significantly above analysts' estimates of $86.6 billion, indicating robust growth potential in its cloud infrastructure business.
- Papa John's Takeover Bid: Shares of Papa John's jumped 18% following a $1.5 billion takeover bid from Irth Capital Management, offering $47 per share, a 50% premium over the stock price prior to the announcement, which could significantly alter the company's capital structure and market positioning.
- Campbell's Disappointing Results: Campbell's stock fell over 7.5% after its fiscal second-quarter earnings missed analyst expectations, with snack sales down 6% and U.S. soup sales down 4%, leading to a 23-year low in stock price, reflecting market concerns about its future growth prospects.
- Nebius Group's Investment Boost: Nebius Group's shares rose 15% after Nvidia announced a $2 billion investment to enable Nebius to deploy over 5 gigawatts of AI cloud capacity by the end of 2030, enhancing Nvidia's AI infrastructure buildout and demonstrating strong confidence in the AI sector.
See More
Oracle Shares Surge After Strong Q3 Results and Revenue Guidance Lift
- Strong Earnings Report: Oracle reported robust fiscal third-quarter results, raising its revenue outlook for fiscal 2027 to $90 billion, an increase of $1 billion, surpassing analyst expectations of $86.6 billion, indicating strong growth potential in the cloud infrastructure sector.
- Stock Price Surge: Following the strong earnings report, Oracle's shares jumped over 9%, reflecting market optimism regarding its future growth prospects and bolstering investor confidence in the cloud computing market.
- AeroVironment's Weak Performance: Drone manufacturer AeroVironment reported adjusted earnings of 64 cents per share and revenue of $408 million for the third quarter, both falling short of analyst expectations of 69 cents and $476 million, leading to a 10% drop in its stock price, highlighting concerns about its profitability.
- Cadre Holdings' Earnings Miss: Cadre Holdings reported fourth-quarter earnings of 27 cents per share, significantly below the 40 cents expected by analysts, with revenue of $167.2 million also missing the forecast of $182.9 million, resulting in a nearly 9% decline in its stock price, reflecting market disappointment in its performance.
See More
Pomerantz LLP Investigates Securities Fraud Claims Against Upstart Holdings
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of Upstart Holdings, Inc. investors, focusing on whether the company and its executives engaged in securities fraud or other unlawful business practices, highlighting serious concerns over corporate governance.
- Performance Decline: On November 5, 2025, Upstart disclosed that it missed third-quarter expectations primarily due to its Model 22 underwriting system reducing borrower approval and conversion rates, leading to a loss of investor confidence.
- Stock Price Plunge: Following the disappointing performance news, Upstart's stock price fell sharply, directly harming investors and reflecting a pessimistic outlook on the company's future growth prospects.
- Legal Action: Pomerantz LLP, recognized as a leading firm in securities class action litigation, is providing support to affected investors, demonstrating its strong commitment to protecting investor rights.
See More
Upstart Holdings Seeks National Bank Charter Approval
- National Bank Charter Application: Upstart Holdings announced plans to apply for a national bank charter with the OCC and FDIC, marking its evolution as a fintech and aiming to enhance borrower experiences while streamlining partnerships with banks and credit unions.
- Stock Price Surge: Upstart's shares rose 4.05% to $29.30 in after-hours trading on Tuesday, reflecting positive market sentiment regarding its bank charter application, which may bolster investor confidence and enhance future financing capabilities.
- Executive Transition: Chief Risk Officer Annie Delgado is set to become the CEO of Upstart Bank, indicating a strategic shift towards banking operations, with expectations to leverage expertise in AI model deployment to modernize banking practices.
- Strategic Partnership Outlook: CTO Paul Gu stated that obtaining a bank charter will allow Upstart to save borrowers time and money while simplifying collaborations with banks, credit unions, and institutional credit funds, further solidifying its market position in the fintech sector.
See More
Upstart Plans to Apply for National Bank Charter
- Bank Charter Application: Upstart plans to submit an application to the OCC and FDIC to establish an insured national bank, marking a natural evolution of its business aimed at saving borrowers time and money through an AI-built bank.
- Strategic Leadership Change: Upstart's Chief Risk Officer Annie Delgado has been nominated as the CEO of Upstart Bank, indicating a strategic adjustment in leadership to support the expansion of its banking operations.
- Stock Price Increase: After market close, Upstart shares rose by 2.27%, trading at $28.16, reflecting positive market sentiment towards its bank charter plans, which may further boost investor confidence.
- Cost Reduction: By applying for a bank charter, Upstart expects to reduce operational and regulatory costs, streamlining partnerships with banks, credit unions, and institutional credit funds, thereby enhancing overall business efficiency and market competitiveness.
See More
