Upgrade files for Nevada banking licence amid lending expansion

By Divya Shah

Why it matters: Upgrade’s application reflects a growing trend of FinTechs pursuing banking licences to gain funding flexibility, expand lending capabilities, and improve economics. If approved, the charter could reduce reliance on partner banks, highlighting how fintechs are increasingly seeking greater control over balance sheets, deposits, and product innovation.

US FinTech Upgrade has submitted applications to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) seeking approval to establish Upgrade Bank, a Nevada-chartered industrial loan bank. 

The proposed bank is intended to complement Upgrade’s existing network of banking partners and loan buyers, which currently support the company’s lending operations. According to Upgrade, obtaining a banking charter would provide greater flexibility and additional funding options to support its consumer lending products. 

The FinTech currently works with partners, including Cross River Bank, which originates Upgrade’s personal loans and auto-refinance loans. The company said the new banking entity would enhance its ability to fund affordable and responsible credit products while continuing to collaborate with existing partners. 

As part of the application, Virginia Varela, Upgrade’s Head of Banking Strategy, has been nominated to serve as Chief Executive Officer of Upgrade Bank. Varela joined the company in July 2025 and brings more than 35 years of experience in the financial services sector. 

Prior to joining Upgrade, she held senior leadership positions, including Head of Community Banking at SoFi Bank, President and CEO of Golden Pacific Bank and Bank of Rio Vista, and President of San Luis Trust Bank. 

The proposed board of directors for Upgrade Bank would also include Upgrade co-founder and chief financial officer Jeffrey Bogan, alongside independent directors Raymond Specht, former CEO of Toyota Financial Savings Bank; Dalibor Snyder, chief business officer at Chrome Hearts; and Daniel Quan, senior advisor at Porterfield, Fettig & Sears. 

Upgrade noted that the approval process remains uncertain and emphasised that there is no guarantee either application will be approved or that approval will be granted within a specific timeframe. 

The move follows a broader trend of FinTech firms seeking banking charters to gain greater control over funding, lending operations, and product development while reducing reliance on third-party banking partners.