Upstart Stock Pops After The Close: Here's Why

Upstart Holdings Inc (NASDAQ:UPST) shares are moving higher in Tuesday’s after-hours session after the company announced plans to apply for a national bank charter.

• Upstart Holdings stock is showing upward bias. Where are UPST shares going?

Upstart To Apply For National Bank Charter

After the market close on Tuesday, Upstart said it plans to submit an application to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to establish an insured national bank. The company also plans to apply for Federal Reserve approval, which would allow it to become a bank holding company.

“The time is right to launch the first bank built from the ground up on AI,” said Paul Gu, chief technology officer and incoming CEO of Upstart.

“Applying for a bank charter is the natural evolution of our business as we’ve grown in size, scale, and product offerings. This will allow us to save borrowers even more time and money and streamline our partnerships with banks, credit unions, and institutional credit funds.”

Upstart said the potential charter will allow it to reduce operational and regulatory costs and complexity for the company and third-party capital sources by placing its lending activities under a federal framework. 

Upstart’s chief risk officer Annie Delgado has been selected as the proposed CEO of Upstart Bank.

UPST Shares Rise After The Bell

UPST Price Action: Upstart shares were up 2.27% in after-hours, trading at $28.16 at the time of publication on Tuesday, according to Benzinga Pro.

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