Introduction

A combination of a high-rate environment and changing consumer needs caused Ardent Credit Union to seek out a strategic fintech partnership.

Anthony Silvi, EVP and Chief Lending Officer, shared that a tough auto and real estate market prompted the Ardent team to seek new ways to put their cash to work. At the same time, the credit union wanted an asset with a favorable net return.

“We only have so many channels to put cash to work in,” said Silvi. “Investments have become more attractive, so we are looking at how to best deploy our cash.” Thus, the team explored AI-powered personal loans to diversify the portfolio.

After discovering that Upstart is an America’s Credit Union’s (formerly NAFCU) preferred vendor, Ardent was interested in learning more about how Upstart could help them gain new creditworthy members while adjusting to changing market conditions. For Ardent, the Upstart Referral Network’s status as an established personal loan program that sourced new members was a key differentiator. The collaboration could provide the credit union with resources and the capability to provide an exceptional digital experience for members beyond its current scope, enabling competitiveness in the personal loans market.

The ability to pivot by changing targets like net yield distinguished Upstart from other indirect programs, and Ardent opted to move forward with their executive team.

Gaining executive buy-in

Recognizing the need to provide a competitive edge and cater to changing member expectations for fast credit decisions and funding, Silvi emphasized the importance of understanding the impact of AI on the business. The Ardent team then worked closely with Upstart to set the key objective of growing their personal loan portfolio profitably, with loan pricing that aligned with changing market conditions.

Ardent and the Upstart team have organized monthly board-level updates and quarterly expanded reports to ensure ongoing transparency. This cadence has also allowed for needed operational adjustments—a simple phone call or email can help leadership on both teams act quickly.

Higher returns and new member growth

With a focus on short-term, higher-yielding loans, the credit union increased its net returns by 225 basis points to keep pace with a changing interest rate environment.¹ The Upstart partnership has also enabled Ardent with the flexibility to adjust its loan volume targets as liquidity changes.

Another key benefit has been the capacity to grow new members, and after a year of partnership, Ardent has gained over 1,500 creditworthy members.²

A bright future ahead

To capitalize on AI-driven advantages, Ardent plans to continue leveraging Upstart’s AI-powered platform to grow its personal loan program further. “AI is here, and credit unions need AI’s sophistication to navigate a difficult environment,” said Ryan Keene, Vice President of Lending. “Credit unions should embrace AI and need to learn about it to remain relevant in the marketplace.”