Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, April 1, 2022

Article Excerpt

UPSTART HOLDINGS INC., $109.03, symbol UPST on Nasdaq, is a California-based artificial intelligence (AI) lending platform that aims to help its bank partners make better credit decisions resulting in more loans at lower risk. The company also operates Upstart Auto Retail, a platform that aims to help auto dealers close more sales. Upstart’s platform connects consumers looking for loans with its network of Upstart AI-enabled bank partners. Upstart’s bank partners include Cross River Bank, Customers Bank, FinWise Bank, and First Federal Bank of Kansas City. Note that Cross River accounts for a high 55% of Upstart’s loan originations, and one other bank accounts for 36%. That concentration adds risk. Upstart uses artificial intelligence to make lending decisions. It argues that its model, which considers more than 1,600 data points, offers greater loan access at lower rates and without adding risk. The company believes that consumers on its platform benefit from higher approval rates, lower interest rates, and a highly automated, efficient, all-digital experience…