Opto Sessions – Invest in the Next Big Idea UPST Stock: Upstart's Co-Founder on 92% Loan Automation
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Oct 16, 2025 Paul Gu, co-founder and CTO of Upstart, discusses how AI is revolutionizing lending with 92% of loans fully automated, increasing approval rates significantly. He shares insights on fraud detection and the importance of using AI models for better borrower evaluations. Gu explores Upstart's expansion into auto and home equity products while maintaining competitive advantages in AI technology. He anticipates widespread AI underwriting adoption in the next five years and highlights the potential for improved credit access globally.
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Distributed Team With Regular In-Persons
- Paul built a distributed 'digital first' team after COVID and hires across almost all 50 states.
- He brings teams together monthly and annually for in-person collaboration to keep culture strong.
AI Improves Borrower Separation
- Upstart uses AI to improve separation between who will repay and who won't, expanding approvals and lowering APRs.
- Better separation lets banks lower rates for good borrowers and offer credit to previously rejected but creditworthy people.
Borrower Stories Of Faster Approval
- Thousands of borrowers share Trustpilot stories about being rejected by banks then approved by Upstart.
- Many avoided payday alternatives or lengthy document labyrinths by getting instant approvals on Upstart.com.