Upstart’s AI Lending Platform Expands to Auto Lending

“Personal loans were the right first step for AI loans – now we’re expanding to autos,” said David Girouard, co-founder and CEO of Upstart. “The days of randomly priced auto loans with confusing and laborious processes for both consumers and banks are coming to an end.”

Upstart’s new service eliminates the need for consumers to track down and enter their VIN or license plate number. Banks no longer need to manage detailed paperwork, including title transfer, lien placement, or repayment of the borrower’s existing loan (in the event of a refinance).

Upstart’s AI model for auto loans is based on its personal loan model, which has been shown to be 5 times more predictive than FICO during the COVID-19 pandemic. * Upstart’s automatic model combines a time-bounded probability of default (or prepayment) with the modeled residual value of the vehicle to generate a personalized loan offer for each applicant. Additionally, with Upstart’s seamless digital experience, banks can achieve Net Promoter Scores (NPS) scores well above published benchmarks for the largest banks. Net Promoter Scores for our banking partners’ current lending programs are around 80, compared to less than NPS 30 at leading banks.**

Upstart’s auto-lending platform features include:

  • Bank-branded mobile app that allows users to complete their app in one sitting
  • Seamless vehicle search through integration with DMV records without requiring applicants VIN or license plate
  • Risk-based AI model assesses customers within the bank’s credit and vehicle policy, resulting in higher approvals and lower losses
  • Automated fraud and verification of client application information means borrowers can complete their application in as little as 20 minutes
  • Integrated securities management, including placement and release of liens as well as transfer of securities
  • Transparent disbursement of funds to dealers, borrower, 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 that partners with banks to expand access to affordable credit with more than $6 billion in loans created. By leveraging Upstart’s AI platform, banks powered by Upstart can have higher approval rates and lower loss rates, while simultaneously delivering the exceptional digital lending experience that 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 regarding Fair Lending. Upstart was founded by former Googlers in 2012 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.

SOURCEUpstart

Related links

http://upstart.com