Upstart's Biggest Risk Isn't Its AI Models. It's Who Funds the Loans.

Upstart Holdings announced plans to apply for a national bank charter to reduce its reliance on third-party lenders for loan funding. While the company showed strong Q1 growth with 61% year-over-year loan origination growth and 44% revenue increase, it remains unprofitable with rising expenses. The stock has risen 18% since the March bank charter announcement but is still down 26% year-to-date.