NXTsoft and Upstart team up to streamline delivery of AI-based lending platform to FIs

By Pavithra R

NXTsoft, a provider of API, cybersecurity and data software solutions for banks, credit unions and other businesses, has announced partnering with Upstart, a leading AI lending platform provider, to 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 (ML) algorithms to enable 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 models with near-zero default rates. Additionally, Upstart offers an all-digital lending experience to borrowers allowing them to apply from any device, with over 70% of funded loans being fully automated without any human interaction.

“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. 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,” said Michael Lock, senior vice president of lending partnerships for Upstart.

By integrating with NXTsoft’s APIs, FIs can now quickly incorporate Upstart’s AI platform into their existing services. According to company data, 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. 

“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. 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,” said David Brasfield, CEO of NXTsoft.

Upstart was created to help solve the massive inefficiencies in the credit market. Traditional lenders use simple FICO-based models to decide who is approved for credit and at what interest rate. Upstart touts to go beyond the FICO score, using non-conventional variables at scale to provide superior loan performance and improve consumers’ access to credit.