Patelco CU Looks to AI for More 'Inclusive Lending'

In a dual-branded lending effort, Patelco Credit Union and artificial intelligence lending company Upstart announced on Wednesday a joint program to offer personal loans to more members using the Upstart Referral Network.

In a statement, the Dublin, Calif.-based Patelco ($8.8 billion in assets, 417,171 members) said it has partnered with Upstart to expand access to affordable credit by means of AI and a digital-first lending experience.

“Our mission is to bring the best products and services to our members as well as help improve their overall financial health and well-being,” Patelco Chief Lending Officer Richard Wada said. “Our partnership with Upstart’s all-digital, AI lending solution allows us to drive more inclusive lending outside of our branch footprint and help even more people improve their financial wellness.”

According to details of the partnership using the Upstart Referral Network, qualified members who apply for a personal loan using Upstart and meet Patelco’s credit requirements will “seamlessly transition into a Patelco-branded experience” with tailored offers to complete the online member application all the way to the closing process.

“We are excited to partner with Patelco Credit Union to provide an all-digital personal lending experience that will enable them to serve more communities and grow their membership,” Upstart SVP of Lending Partnerships Michael Lock said. “With our AI lending platform, Patelco will be able to expand access to affordable credit.”

According to Upstart, 71% of its loans are fully automated, from initial rate requests to final funding without any human involvement. Upstart applies AI programs that look beyond the FICO scores of applicants by using “non-conventional variables at scale” to improve consumers’ access to credit.

The partnership between Patelco and Upstart began earlier this summer.