Upstart Partners NXTsoft to Provide Improved Services to Financial Institutions
Artificial intelligence (AI) lending platform Upstart Holdings (UPST) and workflow application programming interface (API) connectivity provider NXTsoft have signed a partnership agreement to enable Upstart to streamline the implementation of its platform to financial institutions in the U.S.
Upstart helps consumers get personal loans by connecting them to its bank and credit union partners. It uses variables like employment and education to predict a consumer’s creditworthiness. NXTsoft connects fintech firms to credit unions and banks. It also provides data migration, data analytics, data security, and data management services.
The partnership will allow faster integration of Upstart’s platform into the existing services of financial institutions that are already using NXTsoft’s APIs. Upstart’s shares closed 4.6% higher on Wednesday. (See Upstart stock chart on TipRanks)
Senior Vice-President of lending partnerships for Upstart, Michael Lock, said, “NXTsoft offers Upstart-powered banks and credit unions a proven approach to integrate our AI lending platform into their existing core systems and workflow to accelerate time to value and be in the market with a new offering for their customers.”
Piper Sandler analyst Arvind Ramnani recently reiterated a Buy rating on the stock and raised the price target from $143 to $152 (14.8% upside potential).
In a research note to investors, Ramnani said Upstart’s AI solution is redefining the personal lending space and can cause similar upheaval in the automotive sector.
Overall, the stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average Upstart analyst price target of $143.25 implies 9% upside potential from current levels. The company’s shares have gained 324.6% over the past year.
According to TipRanks’ Smart Score rating system, Upstart scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
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