Alliant Credit Union Selects Upstart for Lending-as-a-Service
  • Alliant Credit Union announced a partnership with lending-as-a-service fintech Upstart.
  • The agreement will make Alliant part of the Upstart Referral Network.
  • Upstart SVP of Lending Partnerships Michael Lock said the move will help Alliant “grow its membership while providing greater access to affordable credit.”

Alliant Credit Union announced it has selected Upstart to help it offer customers personalized loans.

Alliant Credit Union first partnered with Upstart in May 2022. With today’s announcement, Alliant becomes part of the Upstart Referral Network. Under this agreement, Upstart offers qualified loan applicants tailored loan offers in around five minutes. When the applicant decides to pursue the loan opportunity, Upstart transitions the client from its own user interface to an Alliant-branded experience, where they finish the online member application and close the loan.

“As part of the Upstart Referral Network, Alliant will be able to grow its membership while providing greater access to affordable credit,” said Upstart SVP of Lending Partnerships Michael Lock.

With more than 650,000 members and over $15 billion in assets, Alliant Credit Union is among the top 10 U.S. credit unions. Alliant SVP, Chief Capital Markets Officer, and Head of Commercial Lending Charles Krawitz said that the company is “very particular” when it comes to selecting partners. “Our partners must embrace doing things the right way, with legal and risk compliance maturity,” said Krawitz. “We believe Upstart has invested in robust systems that ensure borrowers are well-vetted, and that they will make a strong partner for delivering value and options to our members.”

Founded in 2012, Upstart differentiates itself in the alternative lending space by partnering with banks and credit unions seeking to increase their approval rates and lower their loss rates. The company’s AI-first lending tool enables financial institutions to reach a wider variety of end customers, including those with less favorable credit files.

Upstart went public in December 2020 and was in the news headlines recently due to concerns about a drop in funding as well as a decline in earnings. Company CEO Dave Girouard said that the decline was “disappointing” and “unacceptable,” adding, “It may be natural for you to question whether Upstart’s AI-powered risk models aren’t working as designed, but we’re confident this isn’t the case, that, in fact, our models continue to improve with respect to accuracy and risk separation.”