Making Smarter Credit Opportunities the Medium to Retain Customers

Upstart, the leading artificial intelligence (AI) lending marketplace, has officially announced the launch of a new functionality called Recognized Customer Personalization (RCP), which is designed to help banks and credit unions present credit opportunities to their existing customers. According to certain reports, the stated feature should prove useful to automatically identify, on the lender’s behalf, whenever an existing customer is actively shopping for a loan. Once this identification has been duly done, the lender can make their move and offer that customer a credit proposition customized as per the latter’s individual needs. Talk about the whole value proposition on a slightly deeper level, we begin from the promise of instant operations. You see, by quickly spotting an existing customer and their tradeline status, the feature basically ensures unprecedented speed for the customized and branded offer of credit. More on the customization aspect would reveal how it is realized on the basis of factors like credit box, risk tolerance, return target, loan size and terms, and geographic focus. Next up, we must get into the product’s ability to let lenders across the nation choose between Upstart’s AI-enabled credit decisioning or the institution’s own existing and approved underwriting model.

“Our existing members are our most valuable asset, so ensuring that we are there for them throughout their entire financial journey is a top priority for us,” said Josh Garrison, Vice President of Consumer Lending & Cards at Patelco Credit Union. “By expanding our partnership through Upstart RCP, Patelco Credit Union will be able to meet the needs of our existing members who are looking for affordable credit on Upstart.com.”

Another detail worth a mention regarding this development is rooted in the fact that, at launch, it isavailable for personal loans. However, there are plans already in place to expand and accommodate auto loans and home equity lines of credit (HELOC) at some point down the line. All these credit forms, though, will be disbursed through Upstart Referral Network. In case you weren’t aware, Upstart Referral Network was put in place to let more people avail credit in a markedly simple and intuitive manner. By that, we are referring to the way network enables you to select an offer for credit and then seamlesslytransition into the lender-branded experience to complete the online application and closing process.

“In the current economic environment, lenders are laser focused on retaining their customers and increasing the lifetime value of those relationships,” said Michael Lock, SVP of Lending Partnerships at Upstart. “RCP enables them to reach their existing customers in a new way, provide more value, and build loyalty.”

Founded in 2012, Upstart’s rise stems from its ability to connect millions of consumers with more than 100 banks and credit unions. As for these banks and credit union, they prefer Upstart and its AI-powered platform because of the way it empowers them to approve more borrowers at lower rates across races, ages, and genders. To give you some context, it allows for the institutions to instantly approve more than 80% of borrowers with zero documentation. In case that doesn’t impressive enough, then we must mention how, till date, Upstart has facilitated more than $36 billion worth of loan originations, and it has done so for over 2.9 million customers. At present, the company‘s platform offers you the option to avail personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans.