Upstart Announces Upstart AI Lending for Salesforce on Salesforce AppExchange, the World’s Leading Enterprise Cloud Marketplace
Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending platform, today announced Upstart AI Lending for Salesforce on Salesforce AppExchange. Aimed to bring AI-enabled lending to the financial services industry, this integration can help financial institutions modernize lending, stay competitive, and provide better customer service to clients.
With Upstart AI Lending for Salesforce, bank and credit union personnel can initiate an AI-enabled digital lending experience for customers across any interaction–whether in person with a banker at a local branch, on the phone with a call center agent, or from a scan of a QR code–directly from Salesforce Financial Services Cloud.
Upstart AI Lending for Salesforce allows Upstart-powered banks and credit unions to bridge the worlds of traditional brick-and-mortar banking and digital AI-enabled lending, simplifying the process for creditworthy borrowers to obtain loans from anywhere, via any channel, and at any time. By incorporating and pre-filling information a bank or credit union already has about its customer, the all-digital online application process delivers a better, streamlined and personalized lending experience.
best to all,
Within that announcement is a link to a video to show how it all works. The direct link to the video is here: https://vimeo.com/700966313. Since I have never used Salesforce, I couldn’t quite follow what this meant and the video really helped.
Basically, anyone using Salesforce can now offer customers Upstart loans, in any setting, and the loan application will be instantly populated with the information Salesforce already has on a customer.
Salesforce has 150k customers and those customers, of course, are businesses. So, the reach here for individuals who could become aware of and offered Upstart loans in a huge variety of sectors is phenomenal.
And not only is that a big pool of potential new customers, I’m willing to bet that Salesforce has data about those customers that Upstart does not have in their model. But now could. The announcement doesn’t say anything about data sharing, but I would bet they get those other data points at least from Salesforce customers who apply for loans. More data = better AI = more loans with lower default rates and smarter offers = more profitable company.
Lastly, I don’t know who at the company did this, but in the video they show a phone screen with the Salesforce data being populated for an Upstart loan. The name of the person seeking the loan on the screen? Cersei Lannister! I almost fell off of my chair. Truly. My position is already at 30% but I will buy at least a few more shares just for that stroke of genius.
Wow, a tie-in with Salesforce surly can’t hurt!
On a separate note, I was watching Jim Cramer last night (I know, many people don’t like him but I find him informative) and UPST came up during his lightening round and he mentioned that UPST is being controlled by the shorts at the moment.
So just for interest I looked up the short interest and it was at 26% of shares outstanding! For those who don’t know, that is high! To put it in context, I looked up DDOG, NET, CRWD, S and BILL and they were anywhere from 3 to 7%, which is probably expected for the high fliers followed here.
To me, this is more positive than negative. One, it partially explains the recent price action being down since some big hitters are selling share they don’t even have, but also because there is now a back stop and pent up demand if good results start forcing them to buy back shares.
In any case, please don’t reply to this post as it is not really something to be focused on, but thought the information was worth knowing for those invested in UPST and thought it was worth a post.
Again, if anything, I think it is a positive for UPST and explains recent price movement.
Long UPST (and every stock mentioned in the post!).
What they actually say in the press release is “allows Upstart-powered banks and credit unions to…” so it sounds like you can do this if you are already signed on with Upstart, rather than saying anyone on Salesforce can issue loans through this, which would be a huge, extremely unlikely, stretch!
It has to be a positive though.
Thank you, Saul, for highlighting that language. I’m wondering if we have folks here familiar enough with Salesforce and the AppExchange to parse this out.
Here’s how I interpreted the release:
1. Salesforce has a thing called the AppExchange. From the release:
With more than 6,000 listings, 9 million customer installs and 117,000 peer reviews, AppExchange connects customers of all sizes and across industries to ready-to-install or customizable apps and Salesforce-certified consultants to solve any business challenge.
So that piece sounds like AppExchange is something every Salesforce customer (and therefore the customers of those businesses) can access.
Upstart has partnered with Salesforce to add an App to that exchange called Upstart AI Lending for Salesforce. It’s purpose, as you’ve highlighted is:
Upstart AI Lending for Salesforce allows Upstart-powered banks and credit unions to bridge the worlds of traditional brick-and-mortar banking and digital AI-enabled lending, simplifying the process for creditworthy borrowers to obtain loans from anywhere, via any channel, and at any time.
So, lenders who are partnered with Upstart are the options people using the App have for lenders.
But it sounds to me like the Upstart App is available, through the AppExchange, to every person using Salesforce.
So, let’s say I’m a customer of the Flute Center of New York, a company that uses Salesforce. I want a new flute and would like to finance that purchase. It sounds like looking in the financial services category in the AppExchange would turn up Upstart’s app. I could then apply for a personal loan to get my flute, money that would be loaned by one of Upstart’s partners.
If that’s correct–maybe it’s not, this is just my reading–then wouldn’t more banks and credit unions want to partner with Upstart to get in on that action? Nine million folks browsing through the Salesforce AppExchange and finding a quick and easy lending option? Are they going to say, “Well, now, if it’s a loan I want, I had better go to Bank of America and not this app”?
Maybe that’s not what’s happening here. It’s kind of a convoluted path, and I have zero experience with either Salesforce or their AppExchange. But I see this announcing an Upstart app that can issue loans from Upstart partners only but to anyone at all who has access to the Salesforce AppExchange. If that’s the case, that’s a nine-million-person incentive for lenders to partner with Upstart.
I am totally willing to be enlightened if I’ve gotten that wrong.
Forgot to add that the new data that I imagine comes from this (in addition to many new customers) will depend on how the agreement between Upstart and Salesforce treats the data of Salesforce customers who apply for loans through Upstart’s app.
For instance, in my example of the person buying the flute, and then perhaps many people from that company using a personal loan from Upstart to buy flutes, does Upstart know the person came from the flute company? Do they now have an additional data point about how likely flautists are to repay loans?
I hope they talk more about this partnership on the call next week.