Upstart is refocusing on its core personal loan product to capture higher margins. CEO Paul Gu identified this segment as the company’s most differentiated offering.
Reallocated resources for marketing and underwriting drove a sharp acceleration in personal-loan growth during the second quarter. This pivot occurs as the Upstart Macro Index shows default risks are 50% higher than pre-pandemic levels.
The company aims to bring its auto and HELOC products to break-even by the end of the year. Upstart also plans to launch a national bank in early 2027 to lower funding costs and simplify operations.