Customers Bank expands partnership with Upstart to scale its personal loan program

By Pavithra R

Upstart, a leading AI lending platform designed to improve access to affordable credit while reducing the risk and costs of lending for bank partners has announced that Customers Bank, a full-service super-community bank and subsidiary of Customers Bancorp has expanded and extended its bank partnership with the firm to scale its personal loan program through the Upstart Referral Network and its own consumer banking site.

Customers Bank will leverage Upstart’s AI lending platform and the Upstart Referral Network for personal loans to make better and faster risk-based credit decisions and approve more creditworthy borrowers. The partnership has helped the bank to grow its consumer installment loan portfolio and 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.

“Upstart’s model was able to deliver better returns, lower default rates, and reduced risk of fraud. We’ve grown the program from a small pilot to a full-scale lending program that’s continued to meet and exceed our expectations,” said Sam Sidhu, Vice Chairman and Chief Operating Officer, Customers Bank.

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.

The partnership between Customers Bank and Upstart began in 2018. The bank has leveraged Upstart Referral Network–an attractive feature for banks to add new customers inquiring about a personal loan, to reach and serve more of its community. This program allows Upstart to display credit offers from Customers Bank to consumers who come to its company website. Consumers who select these offers will transition seamlessly into the Customers Bank-branded experience to complete their application and closing process.

“We are excited to continue and expand our partnership with Customers Bank. 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,” said Michael Lock, Senior Vice President of Bank Partnerships, Upstart.

Later this year, both Upstart and Customers Bank has plans to enable approved applicants to open a loan and a Customers Bank deposit account in the same digital session on the Upstart Referral Network to create additional value for consumers.