🚀 Why Upstart Could 10X in 5 Years: The AI Lending Revolution Wall Street Is Sleeping On

AI just ate another industry—and this time, it's coming for the loan officers.

The Algorithmic Overlords Take Over

Upstart's machine learning models bypass FICO scores, analyzing 1,600+ data points to approve loans 3x faster than legacy banks. No more "your application is under review" purgatory.

Banks Are the New Blockbuster

While traditional lenders still use spreadsheets from 1998, Upstart's default rates beat human underwriters by 75%. But sure, keep paying 2.5% for that "relationship" with your local branch manager.

The $200B Market Nobody's Dominated...Yet

Consumer lending is a fragmented mess—perfect for a tech disruptor. Upstart's already crossed $1B in revenue, but that's just 0.5% of the addressable market.

Wall Street analysts still value Upstart like a bank. They'll wake up when it's trading at SaaS multiples—right after their short positions explode.

Image source: Getty Images.

Upstart's new verticals are amazing opportunities

Upstart launched auto lending several years ago, but it is now starting to gain serious traction. Auto loan originations have increased sixfold over the past year and are becoming more of a major component of the business. More recently, Upstart launched home loans (specifically home equity lines of credit), and this vertical grew by 67% over the past quarter alone.

These are two massive opportunities. The auto loan industry is more than five times the size of the personal loan industry, and the home loan industry is even larger. Plus, with rates forecast to gradually decline over the next few years, demand for home equity lending could soar. After all, U.S. homeowners are sitting on more than $35 trillion in equity -- the highest level ever.