Girouard reported Monday that Upstart facilitated more refinancing of more than 11,000 auto loans in the first quarter, nearly double the amount it handled in 2021. It also approved more refinancing at more than double the rate.
He said the company has launched its first AI model for auto refinance, partially trained by Upstart’s own auto lending performance data. He described it as a primary competitive advantage as a start-up process for building out the model upstart views.
Borrowers refinancing auto loans through Upstart as Jan. 1 saved an average of $ 4,800 on the life of the loan, the company said.
Upstart, whose primary business right now is personal loans, does not seek to be a lender. It makes money by funneling deals to lenders who trust the company’s AI to vet borrowers’ creditworthiness – and help them scoop up their risk by misunderstood a traditional underwriting model. Girouard said 11 of the company’s 57 lender partners had no minimum FICO score requirement.
Upstart’s underwriting decisions often require no human involvement. The company’s automated approval rate across all loan applications increased to 74 percent in the first quarter, up from 71 percent a year earlier.