HOW CDFIS CAN EXPAND GREATER ACCESS TO CREDIT WITH AI
Accessing fair credit is central to providing opportunities for individuals and communities. That’s why CDFIs like Carver Federal Savings Bank are partnering with Upstart for an AI lending platform that goes beyond traditional credit scores to determine true creditworthiness and ensure underserved communities have fair opportunities.
Upstart-powered lenders can expect higher approval rates and lower loss rates, making financial inclusion beneficial to both low-to-moderate communities and lenders. In fact, the model:
- Approves 44.28% more borrowers than a traditional model at 36% lower APR’s.1
- Drives more inclusive lending with 28.8% of Upstart Powered Loans going to LMI communities.4
HOW UPSTART SERVES
BLACK BORROWERS
The Upstart model approves 35% more Black borrowers than a traditional model. It also offers APR's that are 28.70% lower than a traditional model.2
HOW UPSTART SERVES
HISPANIC BORROWERS
The Upstart model approves 46% more Hispanic borrowers than a traditional model. It also offers APR's that are 34% lower than a traditional model.3
Upstart is proud to partner with MoreThanFair, a community of organizations dedicated to improving access to affordable and inclusive credit for American consumers and small businesses. While access to credit hasn’t improved materially in several decades, we believe that modern technology and data science can now make lending more inclusive, more transparent, and more fair.
Economic Opportunity Coalition
Upstart is a proud partner to the Economic Opportunity Coalition (EOC), a historic effort to catalyze and align public and private investments to accelerate inclusive economic growth. The EOC is coordinating across public, private, and social sector organizations to develop and deploy products that solve challenges in getting resources where they are most needed and drive towards outcomes for meaningful action.
De-Risking Alternative Data
This panel of experts in fintech, technology, and financial ecosystems centers around data in credit underwriting. They discuss how they are evaluating the use of alternative data in credit underwriting and assessing how to de-risk alternative data from a consumer standpoint, policy standpoint, and from an inclusion standpoint.
Enabling Banks to meet CRA requirements
Hear how NBA started a pilot with Upstart to enable MDIs to advance digital modernization and provide smaller personal loans to their communities. Speakers include Nicole Elam, CEO, National Bankers Association, Dominic Mjartin, President & CEO, Optus Bank, and Nat Hoopes, Head of Policy, Upstart
Economic Inclusion: Developing a DEI Strategy
Sui Lang Panoke, Sr. Vice President - Diversity, Equity, Inclusion at Zions Bank, joins us on the Leaders in Lending Podcast to share why DEI needs to be deeply integrated into your business strategy to be successful and sustainable. Listen now to hear all about:
- Establishing trust within a community
- How DEI contributes to a high-performance organization
- Advocating for a set of values to build economic inclusion
- Advice for your DEI strategy
1As of October 2023, and based on a comparison between the Upstart model and a hypothetical traditional model. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
2As of October 2023, and based on a comparison between the Upstart model and a hypothetical traditional model. Upstart does not collect demographic data on borrowers. Upstart uses standard industry methodology to estimate borrower demographic status to conduct access-to-credit analysis comparing Upstart to traditional credit model outcomes. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
3As of October 2023, and based on a comparison between the Upstart model and a hypothetical traditional model. Upstart does not collect demographic data on borrowers. Upstart uses standard industry methodology to estimate borrower demographic status to conduct access-to-credit analysis comparing Upstart to traditional credit model outcomes. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
4 Based loans originated on the Upstart platform from Jan 2017 to September 2023. LMI categorization is based on comparing median income in customers zip code vs median income within the MSA of that zip code.