Is Upstart's Credit Quality Deteriorating?
Artificial intelligence lender Upstart (NASDAQ: UPST) is one of the most popular fintech stocks, based on its following by retail investors. As a result, there has been a lot of controversy over whether the company's underwriting algorithms can revolutionize lending and replace Fair Isaac's traditional FICO credit scoring that has been around for decades. Some argue yes, while for others it's a resounding no.
A big determinant of Upstart's success will be if the credit quality on its loans holds up and if these loans perform better than what traditional banks and other lenders can do on their own. This is especially a concern amid high inflation and as the Federal Reserve hikes its benchmark overnight lending rate, which can put a strain on borrowers.
Let's take a look to see if credit quality has started to deteriorate at Upstart.
Source Fool.com
