Lending is one of society's oldest industries, where staples like credit scores and credit cards have ruled the roost for years. The FICO credit score is the traditional measure of a consumer's creditworthiness, but Upstart claims its AI can reduce loan defaults by 75% while approving borrowers at the same rate. The company started with unsecured personal loans, but recently launched automotive lending, with business and small-dollar loans imminent, and mortgages still ahead on Upstart's future growth plans.
Affirm stock has shot up in recent days, but be careful with Federal Reserve interest rates on the rise.
Affirm (AFRM) has around $3 billion in its kitty and a stressed tech sector to shop from.