UPST

WSJ article on personal loans. Should bode well for UPST.

“Lenders originated $222 billion of personal loans last year, up 31% from a year earlier and 22% from 2019, according to credit-reporting firm Experian PLC. It was the highest level for a full year going back to at least 2011. ……
Even people with subprime credit scores are finding it easier to borrow. Lenders extended a record $22.9 billion in personal loans to borrowers with scores below 620 in 2021, up 34% from a year earlier, according to credit-reporting firm Equifax Inc. …
Lower-income consumers are borrowing more, too. Average personal-loan balances for people with incomes below $45,000 were up 28% in March from a year prior, the biggest increase among income groups, according to credit-score provider VantageScore Solutions LLC. Balances for those with income greater than $150,000 fell 1.8%.”

Https://www.wsj.com/articles/personal-loans-are-back-after-a

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“Upstart foresees $1.5 billion in auto loans, refinancing in 2022”

https://www.autonews.com/finance-insurance/upstart-foresees-…

The article is behind a paywall, but I saw this quote on Twitter.

“(Upstart’s) Rohrssen said dealerships have been choosing Upstart loans for customers at eight times the expected rate.”

“We had big hopes,” he said, but the result was “significantly more”.

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“Lenders originated $222 billion of personal loans”

This was from " total unsecured personal loans using data provided by TransUnion for Q3 2020- Q2 2021" (Q4 earnings)

How does this fit in with Upstart’s stated personal loan addressable market of 96Billion?

Is Upstart sandbagging? Is Upstart trying to make there market-share numbers look better? Is that article being overly broad?

How does this fit in with Upstart’s stated personal loan addressable market of 96Billion?

Is Upstart sandbagging? Is Upstart trying to make there market-share numbers look better? Is that article being overly broad? – Str1der

It seems in most human endeavors there are more potential questions than answers.

Fortunately, not all questions need answers in order to know the way.

Rob
Rule Breaker Home Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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How does this fit in with Upstart’s stated personal loan addressable market of 96Billion?


Not sure, but is Upstart’s TAM reflective of “under-served” market, with a weighting towards those with challenged credit scores, vs the entire personal loan market?

Not sure, but that would be an easy explanation.

Dreamer

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“(Upstart’s) Rohrssen said dealerships have been choosing Upstart loans for customers at eight times the expected rate.”

“We had big hopes,” he said, but the result was “significantly more”.

That sounds quite bullish to me. I saw yesterday that something like 26% of Upstart’s float was sold short as of 4/15/2022, so there could be quite a move following the next Upstart quarterly report if it is a positive one.

-volfan84
long UPST

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“Lenders originated $222 billion of personal loans last year, up 31%…”

Things have changed a lot since last year!