Texans Credit Union Selects Upstart for Personal Lending

Rhea-AI Summary

Texans Credit Union, with 123,000 members and $2.2 billion in assets, has partnered with Upstart (NASDAQ: UPST), an AI-driven lending marketplace, to offer personal loans. This collaboration leverages Upstart's AI technology to enhance Texans Credit Union's lending capabilities, providing a fast, digital experience. The partnership began in August 2023 through the Upstart Referral Network, where qualifying personal loan applicants on Upstart.com can seamlessly transition into a Texans Credit Union-branded experience. This strategic move aims to help more Texans achieve their financial goals by expanding lending opportunities.

Positive

• Partnership with Texans Credit Union, expanding Upstart's network.
• Access to Texans Credit Union's 123,000 members and $2.2 billion in assets.
• Enhancement of lending capabilities with AI technology.
• Seamless digital experience for personal loan applicants.

Negative

• None.

Financial Analyst

Texans Credit Union partnering with Upstart to offer personal loans presents a significant development in the financial sector. This partnership aligns with the ongoing trend of financial institutions leveraging AI technology to enhance their service offerings. From a financial perspective, this move could lead to a more efficient loan approval process, potentially reducing operational costs and improving loan performance by utilizing advanced risk assessment models.

For Texans Credit Union, this partnership could enhance their competitive positioning by offering faster, more personalized loan services, attracting new members and improving customer satisfaction. In the short term, we may see an uptick in loan origination volumes, translating into revenue growth. However, long-term success will depend on how effectively they can manage credit risk using AI-driven assessments.

Investors should also consider the impact on Upstart's financials. As a leading AI lending marketplace, expanding their referral network with a large credit union like Texans Credit Union can further validate their technology and broaden their revenue base. However, it’s important to monitor how well AI-driven loan performance holds up under different economic conditions.

Tech Expert

From a technological standpoint, the integration of AI in lending through Upstart is noteworthy. AI lending technology uses machine learning models to evaluate potential borrowers' creditworthiness more comprehensively than traditional methods, taking into account a wider array of data points beyond just credit scores. This can lead to more accurate risk assessments and potentially lower default rates.

For Texans Credit Union, adopting Upstart's AI technology means offering a more seamless and efficient user experience. Members can benefit from quicker decisions and personalized loan offers, which could enhance member satisfaction and loyalty. It also signals a broader adoption of fintech solutions in traditional banking, which could be a trend to watch for future investments.

RICHARDSON, Texas & SAN MATEO, Calif.--(BUSINESS WIRE)-- Texans Credit Union, one of the largest credit unions in Texas with more than 123,000 members and $2.2 billion in assets, has announced their partnership with Upstart (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, to offer personal loans to consumers.

“Our growth strategy is focused on finding the best ways to assist people to meet their financial goals,” said David Frazier, President and Chief Executive Officer at Texans Credit Union. “Through Upstart’s AI lending marketplace, we are expanding how we reach and lend to more Texans during key milestones in their lives.”

“We are always on the lookout for complementary technology partners that can help meet the modern needs of our growing membership,” said Mike McWethy, Executive Vice President at Texans Credit Union. “Our partnership with Upstart is a great example of how we can use AI to extend our lending capabilities with a fast, digital experience.”

Texans Credit Union started lending as a partner on the Upstart Referral Network in August 2023. With the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet Texans Credit Union’s credit policies will receive tailored offers as they seamlessly transition into a Texans Credit Union-branded experience to complete the online member application and closing process.

“We are proud to have Texans Credit Union as one of Upstart’s lending partners,” said Michael Lock, Senior Vice President of Lending Partnerships at Upstart. “As a partner on the Upstart Referral Network, Texans Credit Union is able to provide personal loans to help more Texans achieve their financial goals.”

To learn more about Upstart for Credit Unions and the Upstart Referral Network, please watch this video.

About Upstart

Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates across races, ages, and genders, while delivering the exceptional digital-first experience customers demand. More than 80% of borrowers are approved instantly, with zero documentation to upload. Founded in 2012, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. Upstart is based in San Mateo, California, and Columbus, Ohio.

About Texans Credit Union

Texans Credit Union is a not-for-profit financial institution serving North Texas members since 1953. Headquartered in Richardson, Texas, Texans Credit Union has more than 120,000 members and $2.2 billion in assets. Our mission is to provide members with exceptional service, value and financial products to help individuals achieve their financial goals. We offer a full range of banking services, including checking and savings accounts, loans, mortgages, credit cards and investment options. Texans Credit Union is one of the largest credit unions in the state. For more information, please visit texanscu.org or follow us on LinkedIn, Facebook and Twitter.

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Press Contact

press@upstart.com

Source: Upstart

FAQ

What is the latest partnership involving Upstart (UPST)?

Upstart has partnered with Texans Credit Union to offer personal loans using AI technology.

How many members does Texans Credit Union have?

Texans Credit Union has more than 123,000 members.

When did Texans Credit Union start using Upstart's services?

Texans Credit Union began using Upstart's services in August 2023.

How will the Upstart partnership benefit Texans Credit Union members?

Members will benefit from enhanced lending capabilities and a seamless digital experience for personal loans.

What is the Upstart Referral Network?

The Upstart Referral Network allows qualified personal loan applicants to transition into a Texans Credit Union-branded experience for loan applications and closing.