Pathward Financial announced a partnership with Upstart on November 6, 2025, to broaden its personal‑loan portfolio. The collaboration will allow Pathward to leverage Upstart’s AI‑driven credit models and cloud platform to serve borrowers seeking debt consolidation, home improvement, and other consumer needs.
Upstart’s platform uses machine learning to evaluate borrowers beyond traditional credit scores, enabling higher approval rates and lower default risk. The partnership gives Pathward access to a network of more than 100 banks and credit unions, expanding its reach while maintaining regulatory compliance through Pathward’s established infrastructure.
The deal aligns with Pathward’s strategy to grow non‑interest income and deepen financial inclusion. In Q3 2025, Pathward reported net income of $42.1 million on revenue of $186.7 million, with non‑interest income rising 11% to $73.4 million. The company’s non‑interest income accounted for 45% of total revenue year‑to‑date in Q2 2025, underscoring the importance of this channel.
Management expects the new loan channel to generate additional fee income and interest revenue, further diversifying Pathward’s earnings mix. The partnership is positioned to accelerate the growth of the Partner Solutions segment, which already drives a significant portion of the bank’s fee‑based earnings.
"Upstart is an innovative and unique financial technology partner dedicated to improving access to credit for all," said Pathward President Anthony Sharett. "We are excited to team up with Upstart on our shared mission to deliver financial products that increase financial access for more people." Upstart Senior Vice President of Lending Partnerships Michael Lock added, "Upstart’s AI‑powered lending platform combined with Pathward’s scale, regulatory acumen and compliance infrastructure allows us to offer industry‑leading credit products to more consumers across the country."
Pathward’s CEO Brett Pharr highlighted the company’s focus on financial inclusion, while CFO Greg Sigrist emphasized the role of talent, technology and processes in executing the strategy. The partnership also supports Pathward’s broader move toward banking‑as‑a‑service and embedded finance, positioning the bank to capture growth in the rapidly expanding fintech ecosystem.
By integrating Upstart’s advanced credit models, Pathward can offer a seamless, digital‑first loan experience that balances speed with robust risk controls. The collaboration is expected to strengthen Pathward’s competitive position in the BaaS and embedded finance markets while delivering tangible benefits to consumers seeking affordable credit options.
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