Higher rates are going to be the new normal. Current rates are still low compared to historic levels. Fewer loans to those with underlying better credit should be the standard and will be easier to implement with UPST AI.

UPST-originated delinquencies are lower than simply using FICO scores.

Concern about the loans they are keeping on their balance sheet is over-done in my opinion. Interest on those loans is income. They have also streamlined the workforce. Way ahead of anyone else in development of their models. Huge stress test over the last year. Data inputs from widely varying economic conditions builds even better models.

Risk exists everywhere when it comes to investing. Most of my money is in guaranteed income. This is my one gambling stock. If it fails, no big deal. If it reaches its full potential, grandkids have it made.$Upstart Holdings, Inc.(UPST)$