Quick Overview
Upstart, a leading fintech, integrated AI-powered risk modeling and alternative data analysis into its credit scoring and loan approval process. This approach expanded credit access to underbanked populations, increased loan approvals by 27%, and reduced default rates by 16%. AI models analyze thousands of data points, including non-traditional financial behaviors, to provide fairer, more accurate lending decisions and faster underwriting.
Upstart
Company Size
~1,000 employees
Revenue Range
Not publicly disclosed
Primary Challenge
Improving credit access, reducing default risk, and accelerating loan approvals
Key Metrics
\- 27% increase in loan approvals\- 16% reduction in default rates\- Faster underwriting and loan processing\- Reduced bias in credit scoring\- Expanded access for underbanked borrowers
The Problem
Traditional credit scoring excluded many potential borrowers and was slow and biased
The Solution
AI-driven credit risk assessment using machine learning on diverse data sources, real-time underwriting, and dynamic loan term adjustments
Results
\- More inclusive lending\- Lower financial risk for lenders\- Improved borrower experience and satisfaction
“Upstart’s AI model is reshaping lending by making credit more accessible and accurate.”
Upstart Executive
Details
Industry
Manufacturing
Departments
Data & Analytics
Customer Support & Service
Use Cases
Data Analysis
Tags
GenAI
NLP
Scalability
Team Efficiency
Time-Saving
AI Tools Used
No items found.
Sources
https://www.vktr.com/ai-disruption/5-ai-case-studies-in-risk-management/https://redresscompliance.com/ai-case-study-ai-powered-credit-scoring-risk-assessment-at-upstart/https://www.mdpi.com/2227-9091/12/11/174https://www.flagright.com/post/understanding-the-role-of-ai-in-redefining-financial-risk-assessment
More Case Studies
See All
How Healthfirst and ClosedLoop Use Scalable AI/ML to Automate Clinical Workflows and Predict Health Outcomes
Healthcare & Medical
How The Judge Group Partnered with a Telecom Training Provider to Create AI-Driven Learner-Focused Courses
Professional Services & Consulting
How a Global Consumer Goods Manufacturer Uses AI-Driven Dashboards to Accelerate Product Launches and Optimize Supply Chain
Manufacturing
How a Large Financial Institution Accelerated Data Retrieval and Decision-Making with Zappr.AI
Finance & Banking
How Wrike Achieved 496% Pipeline Growth and 15× ROI with Drift’s AI Chatbot
Technology & SaaS
How United Wholesale Mortgage Uses Google Cloud AI to Double Underwriter Productivity and Accelerate Loan Processing
Finance & Banking