Artificial Intelligence Lending Platform (AI) Upstart expects to facilitate the issuance of $ 1.5 billion in auto loans on its platform in 2022 amid accelerated growth in 2021.
In the fourth quarter of 2021, Upstart banking partners issued 495,205 cars and personal loans totaling $ 4.1 billion on the platform, an increase of 301 percent over the same period last year. Upstart contributed up to $ 11.8 billion in all loans on the platform for the entire 2021 year, up 338% from last year.
Revenue in the fourth quarter was $ 305 million, an increase of 252% over the same period last year, contributing to a 264% jump in revenue for the full 2021 to $ 849 million.
Although Upstart did not show the number of car loans received in the fourth quarter, car refinancing operations “accelerated” in 2021, CEO Dave Giroud said on Tuesday in the earnings report, noting that Upstart will invest in “improving the funnel. and models ”for its automotive channel. in 2022.
In the third quarter of 2021, Upstart tripled the number of dealers on the platform compared to the year before and rebranded its car loan product to Upstart Auto Retail, officially Prodigy, following the acquisition of Prodigy Software in the second quarter of 2021.
“Right at the top of the list for 2022 was the achievement of a significant scale with car loans on our platform. We are convinced that lending with the help of artificial intelligence is not a phenomenon of one category, but will eventually change almost all types of credit, ”said Giroud. “The performance of our funnel of coding-coding is now comparable to where our funnel of personal loans in 2019 was, taking into account channels.”
Meanwhile, Upstart is currently financing car loans from its balance sheet, but plans to start lending to its banking partners and investors on a “reasonable scale” next quarter, CEO Sanjay Dutta said during the call, noting that Upstart will then turn to the fee model in line with the core business strategy.
Upstart plans to see a “rapid acceleration” of its automotive business in 2022, despite the headwinds facing the auto finance industry, Giroud added. “The biggest problem for car retailers at the moment is the supply chain, which is seen by car manufacturers and the automotive industry in general. It can be difficult to sell software to a dealership that helps them sell more cars when they don’t have enough cars to sell in the first place, ”he said.
Looking deeper, Upstart is working with 42 banks and credit unions, as well as more than 150 institutional investors to finance loans on the platform, Giroud said, noting that the platform also recently added seven lenders who fail to meet FICO score requirements.
In 2021, Upstart also doubled the company’s staff in products, engineering and machine learning thanks to increased profits, Giroud added. “We made more money in 2021 than we burned in just over eight years of private company,” he said.
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https://bankautomationnews.com/allposts/retail/upstart-to-invest-in-auto-finance-channel-in-2022/ Automatic creation based on artificial intelligence reached $ 4.1 billion through Upstart in Q4