2 Growth Stocks to Buy for the Next Decade
Banking is an entrenched industry. Money is loaned to borrowers through the assessment of their income and assets, with the bank earning an interest rate determined by the quality of that position -- and these fundamentals haven't changed all that much.
But Upstart Holdings (NASDAQ: UPST) is using artificial intelligence to help banks take a different approach, reviewing alternative metrics of the borrower to lend more money with a similar level of risk. And on the payments side of finance, Paysafe (NYSE: PSFE) is leveraging a brand-new industry in the U.S. to grow its platform. The company facilitates payments for digital casinos, sports betting books, and the esports industry, known collectively as iGaming. The segment is injecting rapid growth into the company, and since it's only active in 15 states, there's plenty of potential for further expansion.
Upstart is an all-digital lending platform that allows borrowers to apply through its website, and then routes the loan to one of its banking partners. It also offers an application programming interface (API) to banks, allowing them to integrate Upstart's credit decisioning technology in their own application processes. Artificial intelligence (AI) is at the company's core, and the results speak for themselves: Upstart claims its model generates 173% more approvals at the same loss rate as traditional banks.
Source Fool.com
