Upstart’s competitors are companies or organizations that offer similar services in the money lending industry as Upstart. This entails that companies that offer these services can be used instead of Upstart. These companies include SoFi, Peerform, CommonBond, Earnest, LendingClub, etc.
Breakdown of Upstart’s Competitors and What They Do
One thing to note about competing brands is that they do not exist to offer the same service as another brand in the same industry. There is usually a unique factor that they have over one another. As the competitors of Upstart are highlighted below, their unique factors would be pointed out too. These brands include:
- SoFi
SoFi Technologies is a company that also provides money lending services to users. Two things that they do which Upstart does not is one, the provision of services in wealth management. This means that SoFi does not just provide consumers with access to loans but offers a holistic financial service that gives expert advice, decisions on investments, plans for retirement, goal setting, and plans to stay prepared in case of life changes. The second thing is that SoFi offers online banking services which can be used through their mobile app or a desktop interface. SoFi was founded in 2011 and seems to be Upstart’s biggest competitor.
- Peerform
Peerform is another lending platform and competitor of Upstart founded in 2010. Like its name, Peerform deals with a peer-to-peer connection of investors to borrowers. This means that this platform is like a marketplace where the investors are matched with borrowers. Here, borrowers are either given a “whole loan” or a “fractional loan” depending on the investor. A whole loan means that the loan the matched borrower needs would be fully funded by an investor. Whereas, a fractional loan means it would be funded by two or more investors. Peerform is like a community that gives borrowers the privilege of meeting and dealing with successful institutions or companies. This is the difference between Peerform and Upstart.
- CommonBond
CommonBond was launched in September 2013 and is, of course, another Upstart competitor. What stands them out is their service in the refinancing of student loans. Refinancing of student loans means that they allow users to change loan terms to a better or more favorable one. This usually includes an increased amount, a longer payback period, and a decreased interest rate. Their services are exclusive to undergraduates, graduates, and MBA students with programs in the USA.
- Earnest
Earnest is another marketplace lender that provides student loans, both refinancing loans and private student loans. Just like Upstart, they do not use the usual means to determine creditworthiness, they use non-traditional means like employment (to determine the strength of their income), education, savings and spending history. Earnest was founded in September 2013 and since then, has offered loan refinancing for students in 48 states of the United States of America.
- LendingClub
LendingClub was founded in 2006 and was the first peer-to-peer lending platform that ever existed. Borrowers would leave details about themselves and the loan they need on LendingClub’s website, and investors would select the loan they wish to invest in based on four factors; information given by the borrower, loan grade, and purpose and amount. They used traditional means to determine if an individual qualified for a loan. However, in 2020 they stopped this process and bought Radius bank. Now LendingClub is a bank holding company offering both savings and credit options to customers. With their level of accomplishment and expertise over the years, they are indeed today a strong competitor of Upstart.
- Prosper Marketplace
Prosper Marketplace is another online lending platform and competitor of Upstart that was founded in 2005 and has based its brand on the peer-to-peer model of connecting borrowers with investors. With Prosper Marketplace, even individuals can invest, not just institutions.
- FundingCircle
Funding Circle founded in 2010 built its brand also on the peer-to-peer model of money lending. However, borrowers on this platform could only be small and medium enterprises (SMEs). Up until 2022, investors on this platform were individuals but in March 2022, only institutional investors were accepted in Funding Circle.
Conclusion
In this article, lending companies and their various categories have been carefully pointed out. So while some lending platforms can be used instead of Upstart, others cannot. Whatever your lending needs or description, trust that this article would help you navigate through choosing the best option to meet your needs, be it peer-to-peer (personal loans or SMEs), student loans, or loan refinancing. Here we discussed who are Upstart’s competitors.
