Upstart’s AI lending platform is being expanded to include automatic loans

“Personal lending was the right first step for AI lending – now we’re expanding into auto,” said Dave Girouard, Co-Founder and CEO of Upstart. “The days of arbitrary-priced auto loans with confusing and tedious processes for both consumers and banks are drawing to a close.”

The new service from Upstart eliminates the need for consumers to track down and enter their VIN or license plate number. Banks no longer have to deal with detailed papers such as transferring ownership, placing a pledge or repaying the borrower’s existing loan (in the case of refinancing).

Upstart’s AI model for auto loans builds on its personal loan model, which has been shown to be 5 times more predictive than FICO during the COVID-19 pandemic. * Upstart’s auto model combines a time-limited probability of default (or prepayment) with the modeled one Residual value of the vehicle in order to create an individual loan offer for each applicant. Thanks to Upstart’s seamless digital experience, banks can also achieve Net Promoter Scores (NPS) that are well above the published benchmarks of the largest banks. The Net Promoter Scores for our banking partners’ current loan programs are around 80, compared to less than 30 NPS for first-class banks. **

Upstart’s auto loan platform features include:

  • Mobile-friendly application from the Bank brand that allows users to complete their application in one session
  • Seamless vehicle search through integration with DMV records without the need for a chassis number or license plate from applicants
  • Risk-based AI model evaluates customers within the bank’s credit and vehicle policy, resulting in higher approvals and lower losses
  • Automated fraud and verification of customer application details mean borrowers can complete their application in just 20 minutes
  • Integrated title management including assignment and release of liens and transfer of titles
  • Seamless disbursement of funds to either the merchant, the borrower, the previous lender (for refinancing)

For more information, please visit: www.upstart.com/for-banks/auto-loans/

About Upstart
Upstart is a leading AI lending platform working with banks to provide access to affordable credit with more than $ 6Billion granted in loans. By leveraging Upstart’s AI platform, Upstart enables banks to achieve higher approval rates and lower loss rates while delivering the exceptional digital-first credit experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart’s patent-pending platform is the first to receive a no-action letter from the Consumer Financial Protection Bureau related to fair lending. Upstart was founded in 2012 by ex-Googlers and is based in San Mateo, California and Columbus, Ohio.

* Based on an internal study by Upstart, see Upstart for banks for more details.
** Based on a survey of loan applicants administered by a third party, see upstart For banks for more details.

SOURCE Upstart

related links

http://upstart.com

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