NXTsoft, the market leader in secure, comprehensive and complete API connectivity, and Upstart, a leading AI lending platform provider, announced a partnership that will enable Upstart to more efficiently implement its all-digital AI lending platform to any U.S.-based financial institution.
Upstart’s AI model leverages over 1,000 variables and advanced machine learning algorithms to enable more accurate risk-based pricing and greater automation. With Upstart, bank and credit union partners can approve up to 3x the number of borrowers at the same loss rates as traditional FICO score-based models1 with near-zero default rates. In addition, Upstart offers an all-digital lending experience to borrowers allowing them to apply from any device at any time with over 70%3 of funded loans being fully automated with no human interaction.
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As a result of integration with NXTsoft’s APIs, financial institutions will now be able to more quickly integrate Upstart’s AI platform into their existing services. NXTsoft’s OmniConnect has established API connectivity to 99% of all U.S-based core systems and can provide API connectivity between these core systems and any ancillary fintech solution. NXTsoft has been in the API marketspace for over 25 years and has numerous partners and over 1,000 financial institutions that currently utilize its OmniConnect secure API solution to transmit data real-time between core systems and ancillary applications.
“We want to help our bank and credit union partners quickly and successfully deploy Upstart to lend to more creditworthy borrowers through a modern, all-digital experience,” said Michael Lock, senior vice president of lending partnerships for Upstart. “NXTsoft offers Upstart-powered banks and credit unions a proven approach to integrate our AI lending platform into their existing core systems and workflow to accelerate time to value and be in market with a new offering for their customers.”
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Upstart was created to help solve the massive inefficiencies in the credit market. For thirty years, the industry has relied on credit scores and a handful of variables to make lending decisions, resulting in very inaccurate assessments of a borrower’s true credit worth. As a result, only 48% of consumers in the U.S. have access to prime credit even though 80% of them have never defaulted on a loan. This disparity is a direct result of the limited information available to financial institutions to make better credit assessments.
“Upstart’s mission is to enable effortless credit based on true risk, and NXTsoft’s mission is to enable effortless connectivity between Fintech and financial institutions,” said David Brasfield, CEO of NXTsoft. “NXTsoft is excited to partner with Upstart to streamline and scale their ability to onboard new partners to their smarter, AI-based credit decisioning that facilitates a modern, all-digital lending experience.”
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