DR Bank Chooses Upstart’s Small-Dollar Loan Product to Expand Access to Credit
November 19 2024 - 8:00AM
Business Wire
Upstart (NASDAQ: UPST), the leading artificial intelligence (AI)
lending marketplace, today announced that DR Bank, an FDIC-insured
member bank, is using Upstart’s small-dollar loan product to
support customers with short-term financial needs.
These small relief loans are available in amounts between
$250-$2,500, for periods of time between three to 18 months—at or
below 36% APR. The loans are fast, simple, and far more affordable
than many higher-cost credit options traditionally available to
consumers facing urgent financial challenges.
“We’re excited DR Bank has chosen our small-dollar loan product
to expand access to bank-quality credit,” said Upstart co-founder
and CEO Dave Girouard. “This innovative and effective credit
solution allows lenders to deepen their relationships with existing
customers while also attracting new ones.”
Banks and credit unions in recent years have increased their
issuance of small-dollar loans, though economic and regulatory
constraints have made it difficult to run these programs profitably
and at scale. Upstart offers a product that helps lenders serve the
millions of consumers in need of small-dollar loans.
DR Bank said the venture with Upstart continues the company’s
goal of leveraging technological innovation to increase credit
opportunities to customers across the country.
"This partnership signifies our commitment to innovation and
excellence in the fintech industry," said DR Bank CEO Jason
Hardgrave. "By leveraging Upstart's advanced AI technology, we can
reach a broader set of consumers who might not otherwise have
access to credit, in a more efficient way.”
Learn more about small-dollar loans here:
upstart.com/relief-loans
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 also
has offices in Columbus, Ohio and Austin, Texas.
About DR Bank
DR Bank is a digital centric bank dedicated to partnering with
fintechs and businesses to help them achieve their financial
objectives. DR Bank has a history of innovation and fintech
expertise, having previously incubated and sold a consumer-lending
digital platform. In addition to its fintech banking programs, DR
Bank offers a wide product set of commercial and small business
lending, cash management and digital personal banking tools.
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