Upstart, Affirm, and SoFi All Lend to the Same Borrowers. Only One of Them Funds With Deposits.

SoFi obtained a federal bank charter in January 2022, allowing it to take deposits and fund loans internally, which has driven significant growth in deposits ($1.2B to $45.5B) and membership (3.9M to 15.8M members). Upstart received conditional approval for a bank charter in July 2026 with final approval expected in early 2027, while Affirm applied for an industrial loan bank charter in January 2026 but has not yet received approval. Bank charters are transformative for fintechs as they eliminate third-party funding fees and allow them to offer more competitive rates.