cloud network hunting note: when you are passing good credit record, you can get very high credit score, so when the loan interest rate is lower. But the problem is out of here – save up a good credit score often require several years. The emergence of Upstart has allows you to quickly get rid of this trouble! Young people don’t be afraid, you can also get loans with professional results.
if someone need to loan from the bank, the traditional Banks often require borrowers to provide several years of credit and employment records, so as to decide whether to lend to them. If you are young, credit score is not high also, but you want to loan from the bank, so the road is bleak, jun, please think twice. Because in this case, you are difficult to obtain a personal loan from the bank.
however, a former Google (Google Enterprise before leading Enterprise department, the current online startup loan Upstart CEO Dave Girouard think the existing credit system is flawed. He thought that young people, especially young people born after the “one thousand generation” (hunting cloud network note: “generation” in one thousand young people born between 1982 and 2002) needs a better review process to predict their future credibility ahead of time, no matter whether they currently have enough credit scores.
his Upstart startup scientists jointly run by a group of former Google data, aimed at young people.
traditional Banks are mostly based on FICO credit points (a kind of commonly used ordinary credit points), and credit record to determine whether to give loans to borrowers. And different from traditional Banks, Upstart will through all kinds of “signal” in a quantitative way to measure the repayment ability of borrowers, the “signal” including borrowers school performance, gpa and standardized test scores, and the quality of the employer. According to the scores, Upstart to lenders and investors in its theatres.
Girouard said in an interview: “the Upstart has to do is to identify ‘best borrowers’ future. Our calculation model notice it is not what you did in the past, but the future is likely to happen to you. These borrowers will get many great achievements in the future, to earn large sums of money, become the creator of the rich.”
but that doesn’t mean the Upstart in selecting borrowers will give priority to people with doctorate or ivy league graduates. Harvard University literature student evaluation points will not necessarily higher than in the person of this kind of professional work such as nurses.
Girouard said nurses may not be the person with the most money in the world, but their employment ability can be expected, because the social demand for nurses of such professionals is always there. This also means that no matter which school on borrowers, if she has a degree in nursing, she is more likely to be on the Upstart this platform get a small amount of loans.
Upstart founded in 2012. When creating the company’s purpose is to link the young entrepreneurs and investors, provide financing for entrepreneurs. Last year, however, when the Upstart way realize it with an eye to the future development of analysis is more suitable for a personal loan market, it begins to transform into a loan online platform.
now, it seems, the transformation of the decision is very successful. Last year, Upstart provides more than 8700 loan, loans worth $125 million, a month in June alone provides about $20 million. Upstart loan object is mainly of “generation” in one thousand was born, now 22 to 34 people, most of the loan amount is less than $35000. With this in mind, look at the Upstart present development, the company’s overall development is good.
in addition, investors are increasingly recognised Upstart business philosophy. On Thursday, the Upstart announced that it has received $35 million C round of financing. The financing mainly by Dan Loeb Third Point created by Wall Street firms provide the Ventures. As members of the board of directors in the Dan Loeb, he is from hiring Marissa Mayer (Marissa Mayer) is famous for yahoo’s chief executive. (cloud network hunting note: marissa graduated from Stanford university and joined Google in 1999, is the first that Google product manager and the first female engineer, and businessweek 25 “innovation industry leaders” one.)
other investors including Khosla Ventures, First Round Capital and Collaborative Fund, Google executive chairman Eric Schmidt and Salesforce’s CEO Marc Benioff.
although Upstart operation has many potential advantages, a little bit but should not be ignored: the Upstart in the market competition is fierce. Online loans the industry has produced many valuable start-up, including in last year’s public Lending Club and the Prosper for valuation of about $1.9 billion now. In addition, there are still some other major group to “generation” in one thousand was born as the service object of the online payment service, such as Affirm and Digit.
but Girouard don’t think this is a zero-sum game, the damaged party benefit inevitably means that the other party. He believed that the Upstart has the excellent technical enough to make it in this competitive market stand out in a crowd. On the future development, Girouard said when he took the existing user locking become a loyal customer base, he hope can enlarge the service range of Upstart, for example to provide mortgage loans.
he said in an interview: “we’re doing something different. In their 20 s and 30 s who usually don’t have access to the so-called personal credit rating, which means you get 40 s or 50 s to use credit points in exchange for a small amount of loans. We believe that the Upstart is adopting a way of data science to solve the problem.”
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