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Leaders in Lending | Ep. 85

Driving Loan Growth Digitally in Uncertain Times

In this episode, Candace Caruso, SVP Chief Retail Lending Officer at WSFS Bank, and Ed Walters, VP of Accounting Management at Upstart, discuss their partnership and how the Upstart Referral Network and bank-branded solutions have helped WSFS expand their customer base safely in an uncertain economic landscape.

Candice Round
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GUEST SPEAKER

Candice Caruso

Candice brings 24 years of experience in the financial services industry and 15 years as an innovative business funding expert. She offers a wealth of knowledge in the areas of financial technology development, franchise financing, business startup, small business funding solutions, SBA lending and consumer lending. Her expertise has been featured on Bloomberg Radio, CNBC’s Closing Bell, The Wall Street Journal and Franchising World to name a few. Candice was also celebrated as an American Banker Next awardee in 2021 as part of the Most Powerful Women in Banking. She has a proven track record of success and loves enriching her entrepreneurial spirit and spends her time with many startups in Delaware and Pennsylvania as a mentor.

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ABOUT

WSFS Bank

WSFS is the oldest and largest locally-headquartered bank and trust company headquartered in Delaware and the Greater Philadelphia region.

Founded in 1832, WSFS Bank is a locally managed and beloved community banking institution proudly serving the Delaware Valley. WSFS is dedicated to financial equity for all and supports local nonprofits with grants, contributions, and sponsorships. 


 

 

 

Key Takeaways

  1. Expanding digital delivery channels for more efficient lending with better customer insights

  2. How WSFS is leveraging AI for more accurate credit decisions

  3. WSFS’ strategy behind delivering a differentiated service to grow its loan portfolio in a competitive landscape
  4. Leveraging the Upstart Referral Network and bank-branded solutions to provide a seamless digital experience to existing and potential customers

EPISODE RECAP & SUMMARY

The lending environment in 2022 is vastly different than it was in 2019 – rising rates and inflation have made lending more expensive to consumers. However, leveraging AI and machine learning can help banks continue to serve their existing customers' borrowing needs as well as acquire new customers. 

In this episode, Candace Caruso, SVP Chief Retail Lending Officer at WSFS Bank, and Ed Walters, VP of Accounting Management at Upstart, discuss their partnership and how the Upstart Referral Network and bank-branded solutions have helped WSFS expand their customer base safely in an uncertain economic landscape.

Expanding digital delivery channels for more efficient lending

Historically, the full banking experience has only been accessible in-branch. But today, things are transitioning.

Considering the many changes in both technology and the marketplace, customers expectations have changed. The delivery channels through which customers are wanting to be served are becoming more and more digital — and Caruso said it’s about following the customer’s needs.

“We have a multi-year delivery transformation that we've been working on and continue to work on. Part of that is meeting our customers where they want to be met. That could still be in a branch, but it could also be by phone — it could also be through some of the digital delivery channels,” explained Caruso.

At the forefront of this transformation is seeking out opportunities to create a more efficient experience for the customer and creating better insight relative to the customer’s needs. By expanding the digital delivery channels for customers, there is more ease when it comes to lending and the services provided by the union are more readily accessible.

Caruso said banks are very aware of the digital age we are currently in and how that was accelerated by the work from home lifestyle taking over the country. Now more than ever, the adoption of digital tools and the use of digital delivery channels is a necessity for growth.

How WSFS is leveraging AI for more accurate credit decisions

WSFS Bank and Upstart have a successful partnership creating a best-in-class digital experience for customers.

Because Upstart is an artificial intelligence lending marketplace, access to affordable credit is improved while reducing the risks and costs for WSFS. The bank is able to offer higher approval rates while experiencing lower loss rates, all while maintaining the smooth digital lending experience that customers are looking for. 

“Upstarts mission is singularly focused on enabling effortless great credit based upon true risk,” explained Walters. 

Through their partnership with Upstart, WSFS is able to serve the financial needs of their customers while staying within the bank’s economic and risk tolerances.

WSFS’ strategy to grow its loan portfolio in a competitive landscape

Relationships are a major part of WSFS’ focus.

“A strategic focus for us is understanding who our existing customers are, how we can deepen those relationships and how we can acquire new customers or new households,” explained Caruso. 

Their multi-year delivery transformation includes initiatives towards expanding their digital delivery channels, creating better insight of their customer’s needs and performance of loans for the next economic cycle and creating a partnership model for specific solutions in order to improve consumer lending.

Leveraging the Upstart Referral Network

One of the ways that banks can partner with Upstart is through a referral network. This allows banks to subscribe to the marketplace with a desired monthly volume that is matched to underwriting criteria that the bank itself defines.

“The borrower is matched to a single lender providing them the best rate possible, where they meet that lenders underwriting criteria. The borrower is then originated on that lenders paper and then becomes a customer of the bank or credit union,” explained Walters.

This network allows Upstart to utilize multiple marketing channels nationwide. Through direct mail, digital mail, social media, pre-screening campaigns and partnerships, they are able to reach the most amount of potential and current customers possible, supplementing customer growth and successful lending at the union. 

These efforts are aligned with Upstart’s lending partners, taking the weight of having to fund and create marketing material on their own off their shoulders. 

Want to learn more about the partnership between WSFS and Upstart and how digital lending is navigating the ever-changing marketplace? Listen on Spotify, Apple Music or wherever you find your podcasts. You can also check out the original webinar replay here


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Stay tuned for new episodes every week on the Leaders in Lending Podcast