The second-quarter results from the artificial intelligence (AI) lending platform Upstart (NASDAQ: UPST) were disappointing and included wide-scale funding issues. But there was one bright spot in the earnings report.
The company showed updated data that indicates its AI-powered loan-underwriting algorithms have been assessing risk significantly better than Fair Isaac 's (NYSE: FICO) traditional FICO credit scoring. FICO has been one of the main ways lenders evaluate the credit worthiness of individual borrowers for some time now.
This updated data seem impressive, but I'm still a bit skeptical, and I think the market is, too.
For further details see:
Upstart Claims It Is Significantly Outperforming FICO, but the Market Isn't Buying It