Crowe: Without getting too wonky, obviously, thinking. I can go in a lot of different directions here, so I’m just going to keep it general as possible. Half a basis point gain is, could be billions for people. Probably same can be said for so many other large banks, or even something like what SunTrust change its name to, whatever.

Crowe: This will be fuel that would spend billions of dollars, and something like that, so what is Upstart doing that is going to fend them off and keep like $300, $400 billion dollars banks from just going no we’re going to take this over.

Until we go through a full credit cycle, we don’t know how strong what it’s saying is going to work

Frankel: Sure. Upstart is not a lender itself, it provides some kind of a cloud-based artificial intelligence platform that uses about 1,000 different data points on consumers to improve it. The big strength in the program right now is that it has over 1 million loans worth of consumer data to look at to be able to better predict, if you have a college degree, does that affect your default risk, things of that nature. In theory, and this is a big part of the thesis, is that Upstart’s platform could power some of these big banks lending operations, and cut down under losses.Continue reading→