Shares of fintech platform Upstart (NASDAQ: UPST) rose 20.1% on the week, as of 11:21 a.m. ET on Thursday, according to S&P Global Market Intelligence.

Upstart's bounce is certainly welcome for its suffering shareholders, which have seen the stock implode 96% from the all-time highs it set back in 2021 -- even factoring in this week's bounce.

Upstart is a platform that uses artificial intelligence to underwrite loans in a highly automated fashion, with a mission to reach borrowers "overlooked" by the traditional financial system. That concept sounds like a good one; however, the past year has exposed a big vulnerability in its business model: Upstart depends on third parties to buy its loans.

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Source Fool.com