This Black-Owned Bank Launched An AI-Powered Marketplace To Make The Loan Offer Process More Equitable

Structural racism has played a pivotal creditworthiness process we know today.

Designed to be non-discriminatory in its use of just numbers to determine a person’s likelihood to pay back loaned money, there is a myriad of extenuating that complicate the process. Namely, low socioeconomic statuses that stem from discriminatory practices spanning generations.

For example, a survey of 5,000 U.S. adults found that more than half of Black Americans said they have a low or no credit score, compared to 41% for Hispanics, 37% for whites and 18% for Asian Americans as reported by CNBC.

One Black-owned has forged a new partnership to help made the creditworthiness process more equitable.

Carver Federal Savings Bank, a certified Minority Depository Institution (“MDI”), recently announced it has joined forces with Upstart, a leading artificial intelligence (AI) lending marketplace, to provide personal loans to more borrowers and unlock credit where it is needed the most.

“Upstart’s AI technology is supporting Carver Bank’s priority to provide affordable credit to our customers,” said Michael T. Pugh, President and CEO of Carver in a news release. “By using AI, we are expanding credit access while more appropriately assessing the creditworthiness of loan applicants to go beyond narrowly focused traditional credit scores,” “Our partnership with Upstart is yet another way Carver aims to spread economic empowerment across the diverse communities the Bank serves.”

According to the news release, Carver Federal Savings Bank became an Upstart lending partner in August 2022 and is part of the Upstart Referral Network.

“We are excited to partner with Carver to provide the communities the Bank serves with greater access to fairly-priced credit,” said Michael Lock, SVP of Lending Partnerships for Upstart. “Through the partnership with Upstart, Carver is enhancing its offerings and delivering an all-digital, personal lending experience that better meets the needs of more consumers during these challenging times.”