Upgrade applies for a Nevada industrial bank charter to launch Upgrade Bank

Upgrade has filed applications with the Nevada Financial Institutions Division and the FDIC to set up Upgrade Bank, a Nevada-chartered, FDIC-insured industrial loan company wholly owned by Upgrade, Inc. The company says the bank would add options to fund its credit products alongside its existing partner banks and loan buyers.

Founded in 2016, Upgrade has delivered more than $53 billion in credit to over 8.5 million customers.

Virginia Varela, Upgrade's head of banking strategy, is named CEO of the proposed bank. She previously led Golden Pacific Bank and was an officer at SoFi Bank after SoFi acquired it. The initial board would include Upgrade co-founder Jeffrey Bogan and three independent directors.

The read: an ILC parent stays outside the Bank Holding Company Act, which keeps this route attractive to lenders that want their own balance sheet.