Online lender Upstart automated 90% of its unsecured loans in the first quarter of 2024 as automation remained at the forefront of efforts to streamline its loan application process. 

Upstart originated $1.1 billion in personal loans, up 17% year over year, while home equity line of credit (HELOC) loan originations clocked in at $7 million for the quarter, up $4 million sequentially, and auto loan volume was $13 million, down 71% YoY, according to the bank’s earnings statement. 

“We continue to benefit from very high levels of loan processing automation, achieving another high in percentage of loans fully automated at 90%,” Sanjay Datta, chief financial officer, said during Upstart’s May 7 earnings call.

Unsecured loan automation is up 2 percentage points from the third quarter of 2023, when 88% of Upstart’s loan processing was automated, according to Upstart’s Q3 earnings report. 

The automated loan process means borrowers can have “a final approval in just seconds,” Chief Executive Dave Girouard said during the call. With automation in place, the need for document uploading or any human in the loop is eliminated, he said.  

Additionally, Upstart rolled out an automated verification feature, which has instantly 36% of all HELOC loan applicants.  

AI lending

As Upstart focuses on automation, it is paying close attention to AI-enabled lending. 

Last week, the company launched an AI certification program for financial services to help bank executives approach AI-enabled lending, Girouard said. “Just in the first couple days, several hundred individuals registered for the course, reflecting the broad demand to upscale in this area.” 

Vantage West Credit Union is one institution that is taking the course, according to a May 1 Upstart release. 

The AI certification program comes on the heels of Upstart in September 2022 becoming a founding member of MoreThanFair, which helps provide fair and responsible lending through AI, according to the MoreThanFair website. 

Annually, MoreThanFair’s AI-driven models could reduce interest payments for Americans by $103 billion, according to the company’s website. 

American Fintech Council, National Bankers Association and Cross River Bank are among the organization’s founding members. 

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Editor’s note: Bank Automation News has corrected this story to reflect MoreThanFair’s founding date was September 2022 and its AI-driven lending models could reduce interest payments for Americans by $103 billion per year.