NXTsoft and Upstart Partner to Streamline Delivery of AI-Based Lending Platform to Banks and Credit Unions
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210623005369/en/
Upstart’s AI model leverages over 1,000 variables and advanced machine learning algorithms to enable more accurate risk-based pricing and greater automation. With Upstart, bank and credit union partners can approve up to 3x the number of borrowers at the same loss rates as traditional FICO score-based models1 with near-zero default rates2. In addition, Upstart offers an all-digital lending experience to borrowers allowing them to apply from any device at any time with over 70%3 of funded loans being fully automated with no human interaction.
As a result of integration with NXTsoft’s APIs, financial institutions will now be able to more quickly integrate Upstart’s AI platform into their existing services. NXTsoft’s OmniConnect has established API connectivity to 99% of all
“We want to help our bank and credit union partners quickly and successfully deploy Upstart to lend to more creditworthy borrowers through a modern, all-digital experience,” said
Upstart was created to help solve the massive inefficiencies in the credit market. For thirty years, the industry has relied on credit scores and a handful of variables to make lending decisions, resulting in very inaccurate assessments of a borrower’s true credit worth. As a result, only 48%4 of consumers in the
“Upstart’s mission is to enable effortless credit based on true risk, and NXTsoft’s mission is to enable effortless connectivity between Fintech and financial institutions,” said
NXTsoft is headquartered in
Upstart (NASDAQ: UPST) is a leading AI lending platform partnering with banks to expand access to affordable credit. By leveraging Upstart's AI platform, Upstart-powered banks can have higher approval rates and lower loss rates, while simultaneously delivering the exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by ex-Googlers in 2012 and is based in
 In an internal study, Upstart replicated three bank models using their respective underwriting policies and evaluated their hypothetical loss rates and approval rates using Upstart’s applicant base in late 2017. Such result represents the average rate of improvement exhibited by Upstart’s platform against each of the three respective bank models.
 Based on an internal Upstart data analysis of personal loans first payment defaults as of 9/30/2020.
 Percentage of Loans Fully Automated. As of 03/31/2021. We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end (from initial rate request to final funding) with no human involvement divided by the Number of Loans Transacted in the same period.
 According to an Upstart retrospective study completed in