By PYMNTS | October 12, 2026
FinTech company Upgrade aims to establish a Nevada-chartered industrial loan bank, saying in a Monday (Oct. 12) press release that this would complement the company’s existing relationships with bank partners and loan buyers.
Upgrade announced in the release that it submitted applications to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) to establish the proposed Upgrade Bank.
Upgrade offers mobile banking, buy now, pay later (BNPL), personal loans, credit cards and auto financing to mainstream consumers. Since its founding in 2016, the company has delivered over $53 billion in credit to more than 8.5 million customers, according to the release.
The addition of Upgrade Bank to the company’s existing business and bank partnerships would give Upgrade greater flexibility and additional options to fund credit products, the release said.
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Upgrade has named its head of banking strategy, Virginia Varela, CEO of Upgrade Bank. Varela has held CEO, president or board positions at four banks, per the release.
“We are excited at the prospect of establishing a new bank that will advance Upgrade’s mission of bringing responsible and affordable credit to consumers,” Varela said in the release.
PYMNTS reported in September that FinTech and digital asset companies are pursuing bank charters to create regulated institutions with different powers and different roles inside their existing businesses.
The Office of the Comptroller of the Currency (OCC) said in August that it had received 40 de novo applications during the previous 18 months. PYMNTS said these applications show a renewed demand for federal charters, as that figure was close to the 48 applications the OCC received during the 14 years from 2011 through 2024.
PYMNTS reported in February that what “banking” refers to is increasingly up in the air as regulators issue or weigh new charters for national banks, state-chartered commercial or savings banks, federal or state savings associations (thrifts), industrial loan companies, credit unions and special-purpose banks.
Upgrade was valued at over $7.3 billion in an October 2025 funding round in which it raised $165 million.
It was reported at the time that Upgrade focuses on extending affordable credit to mainstream U.S. consumers rather than the younger or lower-income borrowers often targeted by other FinTechs.