Upstart Investor Relations Material

Upstart is a financial technology company that leverages artificial intelligence and machine learning to provide lending solutions. Founded in 2012, Upstart aims to revolutionize the lending industry by utilizing advanced algorithms to assess creditworthiness and offer personalized loan products. The company's platform connects borrowers with lenders, facilitating quick and efficient loan origination processes. Upstart's data-driven approach enables them to make accurate credit decisions, expanding access to affordable credit for individuals and businesses.

Upstart harnesses the power of artificial intelligence to enhance the lending process and provide more accurate credit assessments. Utilizing AI is something that an ever increasing number of companies are doing, with some notable mentions being Palantir and Alphabet, as well as many others. Through advanced algorithms and machine learning models, Upstart analyzes a broad range of data points beyond traditional credit scores, such as education, employment history, and area of study to evaluate borrowers' creditworthiness.

This data-driven approach allows Upstart to make more precise lending decisions and offer personalized loan terms tailored to individual risk profiles. By leveraging AI, Upstart aims to reduce bias, increase loan approval rates, and provide access to affordable credit for borrowers who may have been overlooked by traditional lending institutions. The use of AI technology also helps automate and streamline the loan origination process, enabling faster approvals and efficient borrower experiences. Through this process, the aim is to ensure not only a fair evaluation of every potential borrower, but also ensure that the process is as smooth as it can be.

In traditional lending institutions, loan approval processes often rely heavily on conventional credit scoring models, which primarily consider factors such as credit history, income, and employment. As a result, borrowers who have limited credit history or unconventional profiles may face challenges in obtaining loans.

The more inclusive and data-driven approach of Upstart enables them to provide access to affordable credit to a wider range of borrowers, including those who might have been denied loans by traditional lenders. This differentiation in their underwriting process and the ability to offer personalized loan terms based on a more comprehensive analysis of borrower profiles can make Upstart an attractive choice for individuals seeking loans. Some notable competitors to Upstart are lending institutions like SoFi and LendingTree.