AI Lender Upstart Unveils Automotive Retail Platform
Artificial intelligence (AI) lender Upstart has launched a first mobile automobile retail platform, the company announced in a press release on Wednesday (March 9).
The Upstart Auto Retail platform is set to debut at the National Automobile Dealers Association (NADA) Show in Las Vegas on Friday, when Upstart will also announce new support and OEM (original equipment manufacturer) certification.
“Dealers on our online platform see 66% of their traffic come from mobile devices,” said Michia Rohrssen, Managing Director of Upstart Auto Retail. “If you want to deliver the modern shopping experience that today’s car buyers expect, you absolutely need a world-class mobile experience.”
Rohrssen added that because buying cars isn’t always linear, Upstart has designed the platform to adapt to customers’ mobile usage, while giving dealers more options to customize for each. variety of buyers and the pace of their purchases.
Based in San Mateo, Calif., Upstart’s AI leverages over 1,000 variable and advanced machine learning algorithms, delivering greater automation and more accurate risk-based pricing. This allows lenders to approve more borrowers at the same loss rate as traditional FICO score-based models, the company said.
Learn more: Upstart’s triple-digit growth shows breakneck pace of AI-powered lending
Upstart rolled out AI-powered auto financing last year to allow dealerships to offer financing to more customers. The company said adoption of its platform quadrupled in the past year, with dealers using the platform to sell $4 billion worth of vehicles.
Six OEMs now support the platform, the company said: VW, Toyota, Lexus, Subaru, Mitsubishi and Kia. The company said it was to launch a device-agnostic in-store platform and make its AI-powered financing available to more customers in the United States later this year.
Upstart went public through an initial public offering in 2020. The company recorded triple-digit growth last year, with revenue increasing 250% year-over-year to 228 .4 million and trading volume up 241% to $3.1 billion.