Upstart : Online loans, credit card and debt consolidation
Concept description
Upstart is an online lending marketplace that provides personal loans. To do so, they use non-traditional variables, such as education and employment, to predict creditworthiness. The company says having automated 70% of its loan originations. This approach allows therefore Upstart to hold down losses while lending to those with mediocre credit scores.
Value proposition
What’s in it for borrowers ?
Upstart underwrites personal loans using alternative data and artificial intelligence to give borrowers a better chance at getting a low rate. These loans are from $1000 to $50.000 with 3 & 5 year terms and 99% of personal loan funds are sent just 1 business day after signing.
What’s in it for banks ?
With Upstart’s AI platform, banks can :
- Firstly, enhance their credit decisioning and identify more credit-worthy borrowers within their risk appetite
- Then, reduce losses by up to 75% per-applicant
- Finally, enable their staff to focus on higher-value tasks with automated verification processes