What Bank Does Stilt Use? Everything You Need To Know

Stilt is an online lending platform that provides loans to international students visa holders and immigrants in the United States. One common question people have about Stilt is “What bank does Stilt use?”

As an online lender Stilt partners with banks to provide FDIC insurance on deposits and originate loans. Let’s take a deep dive into the details

Stilt is Not a Bank

First, it’s important to understand that Stilt itself is not a bank. Stilt is a financial technology (fintech) company that operates an online lending platform.

As a non-bank lender, Stilt must partner with banks to provide certain services:

• FDIC Insurance – Stilt offers FDIC insured deposit accounts up to $250,000 through partner banks. This protects customers in case Stilt fails.

• Origination – Stilt originates loans through partner banks. The partner bank funds the loan and Stilt services it.

So while Stilt handles the loan application, underwriting, and servicing, they rely on banks behind the scenes to provide key banking services.

Evolve Bank & Trust

For FDIC insured deposit accounts, Stilt partners with Evolve Bank & Trust.

Evolve Bank & Trust is an FDIC insured institution based in Memphis, Tennessee. They provide banking services for fintechs and non-bank lenders nationwide.

When you open a Stilt deposit account, the account is actually held at Evolve Bank & Trust. It’s FDIC insured up to $250,000 through Evolve’s insurance.

So Evolve Bank & Trust is the bank that safeguards Stilt customer deposits.

Multiple Lending Partners

On the lending side, Stilt uses a network of multiple lending partners to originate loans.

In the past, they partnered with banks like Cross River Bank and FinWise Bank. However, their lending partners have shifted over time.

According to Stilt’s website, they currently work with “over 25 institutions” to fund loans. Rather than relying on a single originator, they diversify across multiple lending capital providers.

The specific names of their current lending partners are not publicly disclosed. But the loans are originated through FDIC insured institutions that Stilt has partnerships with.

JG Wentworth Acquisition

In December 2022, Stilt was acquired by JG Wentworth – a large consumer financial services company.

As part of this deal, JG Wentworth gained ownership of Stilt’s lending platform and origination capabilities. They plan to begin originating consumer loans under the JG Wentworth brand in 2023.

It’s unclear if JG Wentworth will maintain all of Stilt’s existing lending partnerships after the acquisition. However, the digital lending platform provides JG Wentworth an entry point into consumer lending.

Stilt’s Loan Products

Now that we’ve covered the banks behind the scenes, let’s look at the loan products Stilt offers:

• Personal Loans – Unsecured personal loans up to $100,000 for 36 months. Uses include paying tuition, relocating, or consolidating debt.

• Student Loans – Loans specifically for international students to pay for education costs. No cosigner required.

• Mortgage Loans – Mortgages for visa holders and immigrants who struggle to qualify from traditional lenders.

• Auto Loans – Loans up to $100,000 for purchasing a car. Terms up to 72 months.

While Stilt sets the rates and terms, the loans themselves are originated through Stilt’s network of lending partners.

Stilt’s Key Features

Here are some key things to know about Stilt’s lending services:

• No Minimum Credit Score – Stilt says they will look at multiple factors, not just credit scores. This helps applicants with no credit history.

• Soft Credit Pull – Checking rates only requires a soft pull that doesn’t hurt your credit score.

• Fast Funding – Loans fund in as little as 1 business day after approval.

• No Prepayment Penalties – You can pay off Stilt loans early with no extra fees.

• Co-Borrowing Option – Allows applying with a co-borrower to potentially improve your chances.

The Bottom Line

While Stilt handles the interface and servicing, they rely on FDIC insured bank partners behind the scenes to safeguard deposits and originate loans.

Evolve Bank & Trust holds Stilt customer deposits to provide FDIC insurance.

For lending, Stilt uses a network model with multiple lending partners rather than a single originator bank.

After being acquired by JG Wentworth, Stilt’s technology will power JG Wentworth’s entry into consumer lending starting in 2023.