Upstart Says Originations Leap as Consumer Credit Strength Improves

Core Insights - Upstart, an AI lending marketplace, reported significant growth in consumer demand and credit strength in Q3, with a notable increase in loan originations [1][2][3] Company Performance - Loan originations increased by 80% year-over-year in Q3, reaching $2.9 billion [2] - Personal loan originations rose by 73% to $2.7 billion, auto loan originations increased fivefold to $128 million, and home loan originations grew fourfold to $72 million [3] - Over 2 million applications were submitted in Q3, marking a 30% increase from Q2 and the highest level in over three years [3] Consumer Credit Strength - Upstart's macro indicator showed a modest uptick in July and August, leading to a temporary reduction in approvals and an increase in interest rates, but overall consumer credit strength remains stable with signs of improvement [4][5] - The company perceives the broader economic backdrop for credit as favorable, with decelerating personal consumption growth indicating improving credit health [6] Automation and Process Improvements - 91% of loans enabled by Upstart in Q3 were fully automated, requiring no human intervention [6] - The company successfully automated the home equity line of credit (HELOC) approval process, increasing the automated approval rate from less than 1% in June to 20% by October [7][8]