Ensuring Safety and Soundness with AI l Upstart 2024

The CU Lab with NAFCU Services

Thank you for joining us for another episode of the CU Lab. I’m Randy Salser with America’s Credit Unions, and I’ll be your moderator. Today I am sitting down with Lynn Sautter Beal, Vice President of Implementation and Success at Upstart. We are going to talk about ensuring safety and soundness with AI.

Join Upstart expert Lynn Sautter Beal, Vice President of Implementation and Success for an informative session to explore why credit unions are applying AI to lending and how to empower credit unions to regulators and outside examiners through AI models during exams to ensure transparency and compliance. We also discuss challenges and key best practices for credit unions, and how credit unions can proactively prepare for upcoming developments in AI to stay ahead of the curve and maintain safety and soundness.

In This Episode:

[00:32] I am sitting down with Lynn Sautter Beal, Vice President of Implementation and Success at Upstart. We are going to talk about ensuring safety and soundness with AI.

[01:32] She leads Upstart’s customer success implementation programs and professional services teams as well as their diligence teams.

[03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast.

[04:02] As you are a credit union thinking about partnering with a Fintech look for the expertise within that organization.

[06:49] We have an Upstart diligence data room that is just a retro repository of everything that a credit union or potential partner would want to know about us.

[08:25] Articulating that business use case and then how partnering with a Fintech like Upstart can support that is really the first step in having a successful conversation with your board.

[10:30] If you are a champion of the program and you think this is the next type of right step for your credit union and you know there are objectors, talk to your account executive at your Fintech and have them help you overcome those objections.

[12:02] Lynn shares a recent positive success story.

[13:45] In addition to really knowing your business use case, plan for diligence. Don’t scrimp on due diligence. It will not support you long-term.

[15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint.

[15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly.

[17:31] Making sure you are talking to your peers is really a great best practice.

[17:41] Staying informed and connected will help keep you on the forefront of what is happening.

Links and Resources:

NAFCU

Upstart

Lynn on LinkedIn