Upstart Joins White House-led Economic Opportunity Coalition, Shares AI Technology With Minority Lenders and Community Banks

Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, today announced it will provide preferred access to its AI lending platform with no implementation fees for all Community Development Financial Institutions (CDFIs) nationwide, which complements its existing commitment to Minority Depository Institutions (MDIs) with the National Bankers Association. The announcement coincides with Upstart becoming a founding member of the Economic Opportunity Coalition, a new group partnering with the Biden-Harris Administration focused on helping find solutions to advance economic equity in the United States.

The Coalition, which counts Ford Foundation, Google, and Bank of America among its founding members, ensures that federal investments designed to close the racial wealth gap reach the places of highest need. Two of the four pillars are “Investing in CDFIs and MDIs” and “Expanding inclusive and equitable access to credit and other financial services facilitating financial health.” Hundreds of MDIs and CDFIs will now be able to use Upstart’s AI-driven credit decisioning model to scale direct credit access to consumers and small businesses in their communities and regions.

Upstart’s commitment builds on an existing partnership with members of the National Bankers Association, the association for minority-owned and women-owned banks, to provide advanced digital lending technology and the ability to reach new customers economically and online.

“As a founding participant in the Economic Opportunity Coalition, we are proud to help MDIs and CDFIs thrive by offering fairer, more accurate, and seamless consumer loans as customer expectations are evolving rapidly,” said Nat Hoopes, Vice President and Head of Public Policy and Regulatory Affairs at Upstart, at the Coalition’s launch event with Vice President Kamala Harris. “MDIs and CDFIs offer critical access to credit that is fundamental to economic mobility in the United States, and Upstart’s AI technology provides a unique opportunity to unlock credit where it is often needed most.”

Notes to editors

1. There are 144 MDIs and over 950 CDFIs in the U.S., operating in every state serving both rural and urban communities.
2. The founding members of the Coalition are Upstart, Ariel Investments, Bank of America, BNY Mellon, Capital One, Citi, Discover, Ford Foundation, Goldman Sachs, Google, Key Bank, Kresge Foundation, Mastercard, McDonald's, McKinsey & Company, Micron, Momentus Capital, Moody’s, Netflix, PayPal, PNC, Rockefeller Foundation, and TIAA.
3. The Upstart model approves 43.4% more Black borrowers and 46% more Hispanic borrowers than a traditional credit scoring model, with approximately 25% lower APRs.¹

About Upstart

Upstart (NASDAQ: UPST) is a leading AI lending marketplace partnering with banks and credit unions to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks and credit unions can have higher approval rates and lower loss rates for every race, ethnicity, age, and gender, while simultaneously delivering the exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by ex-Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.

Forward-Looking Statements

This press release contains forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan", "intend", “target”, “aim”, "believe", "may", "will", "should", “becoming”, “look forward”, “could”, "can have", "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements give our current expectations and projections relating to plans, objectives, assumptions; our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; and future performance. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The forward-looking statements included in this press release relate only to events as of the date hereof. Upstart undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission, copies of which may be obtained by visiting our investor relations website at www.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to sustain our growth rates; the effectiveness of our credit decisioning models and risk management efforts; overall economic conditions, particularly interest rates; geopolitical events, such as the Russia-Ukraine conflict; disruptions in the credit markets; our ability to retain existing, and attract new, bank partners and lenders; and our ability to operate successfully in a highly-regulated industry.

¹ As of December 31, 2021, and based on a comparison between the Upstart model and a traditional credit-score only model. Upstart does not collect demographic data on borrowers. Upstart uses standard industry methodology to estimate borrower demographic status to conduct access-to-credit analysis comparing Upstart to traditional credit model outcomes.

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