My best guess is the accelerating economy and improving the job market will increase the pool of candidates that qualify for their loans. This is an unsexy but very obvious answer.
It’s interesting to note they charge more than competitors. The AI allows them to extend credit to people that traditional banks would overlook given their manual approval process. And they can approve people faster. This would indicate a significant advantage over competitors. Perhaps the speed to approval is allowing them to capture market share from weaker competitors who have no hope of developing their own AI. That’s a better story, but I have no idea if it’s true.
Read the Nerd Wallet review here for more.
https://www.nerdwallet.com/reviews/loans/personal-loans/upst…