Upstart’s Post

Transcript

I'm Gordon Levy. I lead the risk and Analytics group within the consumer bank at Apple Bank. So Apple Bank has been serving downstate New York, the five boroughs of New York City and the surrounding community since 1863. That makes this our 161st year in business. We've had the luxury of acquiring many, many customers. I can't give an exact number, but it's been a large number of new customers that came from upstarts. Referral network and all of the customers that have come into the organization which we have the ability to cross sell it deposit product to. We treat as just as much of a customer as our deposit customers who have been around for 40 or 50 years. And in many cases over the last three plus years I've seen comments which say, you know other institutions were not willing to give me a loan or or the price at another institution was just too high. You're reasonable. You gave me a chance. I won't let you down. The Net Promoter score for customers that that originate alone is over 80%. As far as FICO score minimums and sort of other attributes other than just using the Upstart model. Our view was if we're going to trust the Upstart model and we know it includes FICO, why be redundant and have minimum Ficos in advance of the customer? Being scored by the model, I think the question really comes down to do we trust the Upstart model or do we not? If we do, let's just go all in and see what the results are. And quite frankly, we've been very pleased because when we started, we did have a FICO minimum. We removed it and we have not seen a difference in performance. One could argue the performance was even better than before we removed the the minimum. I think Upstart does a very good job of staying close to the macroeconomic environment. And what's happening in the marketplace, whether it's monitoring, you know, the interest rates that other other lenders are charging or sort of, you know, macroeconomic news from the Fed and and others. So as a result of that, our belief is the, the model has been adjusted correctly over the last three years to allow us to sort of stay up with or stay on top of evolving the situation. So upstarts are a great company always, you know, very important that you know, very. Good with customer service, but I think always looking to innovate, always looking to understand what is the next product that could work for banks like us, the community banks. And I believe Upstart will launch more products that fit our needs and I look forward to partnering on those products. And we can't go to every state in nor do we expect to or want to, but there are others out there that that we will likely be in overtime and we believe Upstart will have the products that allow us to enter those markets more. Effectively.