First Commonwealth teams up with AI lender Upstart

ALLENTOWN, Pa. & SAN MATEO, Calif. – First Commonwealth Federal Credit Union has entered into a partnership with Upstart (NASDAQ: UPST), a prominent AI lending platform, to increase the availability of personal loans for its members in Pennsylvania and New Jersey.

The collaboration, which began as part of the Upstart Referral Network in December 2024, enables First Commonwealth to extend personalized loan offers to qualified applicants sourced from Upstart.com. Once these applicants are deemed eligible, they are directed to a First Commonwealth-branded interface to finalize their online membership and loan closing procedures. New member and loan data from Upstart integrate with First Commonwealth’s core banking system, ensuring a smooth transition for new members and broadening the scope of services the credit union can offer.

Terry Grier, Chief Lending Officer at First Commonwealth, emphasized the credit union’s commitment to financial empowerment, especially for low- and moderate-income individuals. The partnership is expected to provide these borrowers with greater access to necessary funds, supplemented by financial guidance from certified counselors.

Michael Lock, Senior Vice President of Lending Partnerships at Upstart, expressed enthusiasm about adding First Commonwealth to their network of lending partners. He highlighted the benefits of expanding affordable credit access through personal lending and financial counseling programs. InvestingPro analysis suggests positive momentum for Upstart, with analysts expecting net income growth this year. Discover more insights and 10+ additional ProTips with an InvestingPro subscription.

Upstart, headquartered in San Mateo, California, has been a pioneer in the AI lending marketplace since 2012. The company boasts a vast network, connecting consumers with over 100 banks and credit unions that utilize Upstart’s AI models and cloud applications for improved credit product offerings. Upstart’s AI enables lenders to approve a higher number of borrowers at reduced rates while maintaining a digital-first customer experience. The platform’s services include personal, automotive retail and refinance, home equity lines of credit, and small-dollar relief loans.

First Commonwealth Federal Credit Union, based in Allentown, PA, has been serving the region since 1959. With over $1.3 billion in assets, it operates 14 locations and provides a robust digital banking experience to more than 95,000 members and 2,400 partner companies. Investors tracking this partnership should note that Upstart’s next earnings report is scheduled for May 6, 2025. For comprehensive analysis and Fair Value estimates, access the detailed Pro Research Report available exclusively on InvestingPro.

This expansion in services is part of First Commonwealth’s ongoing efforts to provide inclusive financial solutions and underscores the growing trend of leveraging technology to enhance lending practices. The information for this article is based on a press release statement.

In other recent news, Upstart Holdings Inc. has reported several significant developments. The company has initiated a $500 million at-the-market equity offering program, allowing for the potential sale of common stock to raise capital for general corporate purposes. In addition, Upstart has announced the appointment of Peter Bernard to its Board of Directors, bringing expertise in banking and risk management, which is expected to aid the company’s growth and innovation. Analysts have been adjusting their outlooks on Upstart, with Citi raising its price target to $108 and maintaining a Buy rating, while Mizuho increased its target to $110, citing an improved financial outlook and potential for continued outperformance.

BofA Securities also updated its stance on Upstart, raising the price target to $53 but retaining an Underperform rating due to concerns about valuation. Upstart has reported a 21% revenue beat for the fourth quarter of 2024 and provided a forecast for 60% growth in fiscal year 2025. The company aims to achieve GAAP net income breakeven for the fiscal year, despite a challenging economic environment. Upstart’s recent initiatives, including enhancements to its AI models, are expected to improve risk management capabilities. These developments highlight Upstart’s strategic efforts to navigate the competitive fintech landscape and sustain growth momentum.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.