ABNB Federal Credit Union partners with Upstart for AI lending

CHESAPEAKE, Va. - ABNB Federal Credit Union has formed a partnership with Upstart (NASDAQ:UPST) to expand its personal loan offerings through artificial intelligence technology, according to a press release issued Wednesday. Upstart, currently valued at $6.1 billion, has shown impressive revenue growth of 54% over the last twelve months. According to InvestingPro analysis, the company appears overvalued at its current price of $63.41, though 8 analysts have recently revised their earnings expectations upward.

The credit union, which serves over 76,000 members nationwide, began lending through the Upstart Referral Network in May 2025. The partnership allows qualified applicants from Upstart.com who meet ABNB’s credit criteria to access loans through a branded digital experience. With a remarkable gross profit margin of 81.17%, Upstart’s AI-driven platform has demonstrated strong operational efficiency. Discover more insights about Upstart’s financial performance in the comprehensive Pro Research Report, available exclusively on InvestingPro.

"Through our partnership with Upstart, we’re expanding access to inclusive, digital personal lending making it easier for more people to become part of the ABNB community," said Michael McNabb, ABNB’s Chief Lending Officer.

The collaboration enables ABNB to reach potential new members online during periods of financial need. Upstart’s AI lending marketplace connects consumers with more than 100 banks and credit unions that use its AI models and cloud applications.

Michael Lock, Senior Vice President of Lending Partnerships at Upstart, stated that ABNB is now extending its personal lending offerings to reach new members online.

ABNB Federal Credit Union is a not-for-profit, member-owned financial institution with 14 branches across Hampton Roads and northeastern North Carolina. The credit union has been operating for more than 65 years.

Upstart, founded in 2012 and based in San Mateo, California, reports that more than 90% of loans on its platform are fully automated without human intervention. The company’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar relief loans. While the stock has shown high volatility, analysts expect positive net income growth this year, suggesting potential strengthening of the company’s market position. InvestingPro subscribers have access to 10 additional ProTips and detailed financial metrics for deeper analysis.

In other recent news, Upstart Holdings, Inc. reported a strong performance in its second quarter of 2025, surpassing earnings expectations and achieving its first profitable quarter since 2022. The company posted earnings per share of $0.36, which was 50% higher than the projected $0.24, and generated revenue of $257 million, exceeding forecasts by 14%. Following these results, Needham raised its price target for Upstart to $82, up from $70, while maintaining a Buy rating, highlighting the importance of the company’s GAAP profitability. Additionally, Upstart announced the pricing of $600 million in 0% Convertible Senior Notes due 2032, an increase from the initially planned $500 million. The notes will be convertible into Upstart’s common stock at a conversion price of approximately $82.50 per share. These developments reflect Upstart’s strategic financial maneuvers and positive market reception.

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