Upstart, a leading artificial intelligence (AI) lending platform, announced Customers Bank, a full-service super-community bank and subsidiary of Customers Bancorp, Inc., has expanded and extended its bank partnership with Upstart to scale its personal loan program through the Upstart Referral Network and its own consumer banking site.
Through Upstart’s AI lending platform and the Upstart Referral Network for personal loans, Customers Bank has been able to make better and faster risk-based credit decisions and approve more creditworthy borrowers. Customers Bank’s partnership with Upstart has helped it grow its consumer installment loan portfolio over the past few years, and it expects that trend to continue. With more predictive underwriting models and lower fraud rates delivered by the Upstart AI-based lending platform, Customers Bank’s personal loan portfolio with Upstart has performed well for the bank, while delivering a tremendous customer experience. As a result of this performance, Customers Bank looks forward to expanding its relationship with Upstart.
“Upstart’s model was able to deliver better returns, lower default rates, and reduced risk of fraud,” said Sam Sidhu, Vice Chairman and Chief Operating Officer, Customers Bank. “We’ve grown the program from a small pilot to a full-scale lending program that’s continued to meet and exceed our expectations.”
Customers Bank is a digital-forward bank that partners with best-in-class technology platforms to provide financial services nationwide with exceptional customer experience, state-of-the-art cyber security, and demonstrable shareholder value. In recent months, Customers Bank has announced partnerships with other platform providers for blockchain-based commercial payment rails, consumer cash management, and commercial loan portfolio optimization.
“We are excited to continue and expand our partnership with Customers Bank,” said Michael Lock, Senior Vice President of Bank Partnerships, Upstart. “Their digital-first approach to redefine banking in the 21st century has made them a great partner for us to transform how to help consumers effortlessly access credit based on true risk.”
Customers Bank was one of America’s top Paycheck Protection Program (PPP) lenders participating in more than 320,000 loans worth more than $9 billion in 2020 and 2021 by building a fintech/traditional bank hybrid model that used a “high tech/high touch” approach to servicing small businesses. Customers Bank and Upstart are building on this successful model to deliver consumer lending services nationwide with the advantages and services that come from the partnership of a full-service bank and nationally recognized loan originator.