AI Lending Platform Looks to Unlock Higher Approval Rates and Lower Loss Rates for FNBO Customers
First National Bank of Omaha (FNBO) announced the successful launch of their all-digital personal loan powered by Upstart. In just three months, FNBO’s program has provided convenient and affordable personal loans to more than several thousand borrowers in 45 different states, totaling tens of millions in loan originations.
More than 76 percent of FNBO’s new customers were approved instantly, with a median time from application to loan acceptance of just nine minutes. FNBO’s program has already delivered an exceptional level of customer satisfaction, with a Net Promoter Score (NPS) of 83.
“We’re always looking for new ways to bring our customers the best possible products and experiences here at FNBO,” said Marc Butterfield, senior vice president of Innovation and Disruption at First National Bank of Omaha. “Credit underwriting is an area that can leverage new innovative tools and practices compared to today’s backwards-looking scores and metrics.
Upstart’s model uses machine learning and artificial intelligence to determine a borrower’s creditworthiness, which we believe may help us approve more creditworthy customers for personal loans at more affordable rates.”
FNBO launched its personal loans offering in July 2019 using Powered by Upstart. For the first phase of FNBO’s personal loan program, Upstart referred applicants fitting the bank’s credit policy from Upstart.com to FNBO. In phase two, FNBO will look to expand Powered by Upstart to new and existing customers through its own web properties.
“Personal loans are the fastest growing category in consumer lending,” said Dave Girouard, CEO and Co-Founder, Upstart. “Rather than competing against banks, we launched Powered by Upstart to develop industry-wide partnerships to help banks take advantage of AI lending. FNBO’s three-month milestone is a great example of how our AI can help regional banks build a new loan offering with a seamless digital customer experience.”
According to a study conducted by Upstart, more than four in five Americans have never defaulted on a loan, yet less than half have access to prime credit. Upstart is the first company to receive a No-Action Letter from the Consumer Financial Protection Bureau, providing validation that Upstart’s AI model approves 27 percent more borrowers than traditional lending models with 16 percent lower average APRs for approved loans.