With its potential to disrupt the lending industry, Upstart (NASDAQ: UPST) was firing on all cylinders in 2021 as the U.S. economy was on solid footing and borrower appetite was high. Then things changed last year, thanks to stubbornly high inflation and rising interest rates. Upstart has been feeling the pain of decreasing demand for its platform. 

After being down a whopping 91% in 2022, investors might view the company's shares as seriously undervalued today. But here's why I'm in no hurry to buy Upstart stock. 

Shareholders should be familiar with Upstart's business model. The company has developed a proprietary artificial intelligence (AI)-driven platform that utilizes more than 1,500 different data points to make credit-approval decisions. This is far more exhaustive when compared to the traditional Fair Isaac FICO model, which uses five variables to come up with a credit score. Upstart's system has proven to increase automation while, at the same time, producing higher approval rates and lower loss rates.  

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Source Fool.com