Avant Applies for National Bank Charter
Founded in 2012, Avant targets middle-income and near-prime Americans who are often underserved by traditional banks, offering personal loans and credit cards currently issued through WebBank. The Chicago-based fintech says it has served about 4.8 million customers and connected them with more than $17.6 billion in credit. A bank charter would allow Avant to accept deposits, lower its funding costs and control products and customer relationships more directly.
Avant said on Sept. 18, 2026, that it filed applications with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to establish Avant Bank, N.A., as an insured national bank. Subject to regulatory approval, the bank would combine credit, banking products and financial-health tools on a single digital platform, using Avant CreditOS for lending decisions. Proposed executives include Charles Whittaker as CEO, Margaret Hermes as president and COO, and Kevin Friedrich as CFO.
All Coverage
2 original reportsThe Backstory
The history behind this eventUpstart Wins Conditional OCC Approval for AI-Powered National Bank
Upstart operates an AI-powered lending marketplace that connects consumers with more than 100 banks and credit unions, with over 90% of loans processed without human intervention. The company says its nationwide model currently requires 248 state licenses and cost about $200 million in capital and regulatory infrastructure in 2025, or roughly $135 per loan. A national charter would place lending under a single federal framework, give Upstart access to deposit funding and reduce costs for borrowers and third-party capital providers.
Upstart applied in March 2026 to establish Upstart Bank, N.A., and the Office of the Comptroller of the Currency granted conditional approval on July 23. The proposed Delaware-based bank would operate without branches, originate consumer loans nationwide and accept deposits insured by the Federal Deposit Insurance Corporation. It cannot begin operations until the FDIC approves deposit insurance, the Federal Reserve allows Upstart to become a bank holding company, and capital, governance and operational-readiness conditions are met. Chief Risk Officer Annie Delgado is the proposed bank CEO.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →