AI-based fintech Upstart expects to enter the auto asset-backed securitization market down the road.
Upstart’s predominant securitization activity is in unsecured loans, Sanjay Datta, president of capital and enterprise, told Auto Finance News, noting the company doesn’t have an auto ABS shelf.
“The market can expect us to start [auto ABS issuance] in the foreseeable future because we’re getting to the types of volumes where it’ll make sense in auto as well,” he said.
The fintech included auto-secured personal loans (ASPLs), or consumer loans secured partially by vehicle titles, in its recent ABS transactions.
Upstart has issued three ABS transactions in 2026:
- A $569 million deal on June 26;
- A $481 million deal on April 12; and
- A $292 million deal on March 12.
Upstart’s auto originations volume surged 264.1% year over year in the second quarter to $426 million, aided by growing adoption of its platform by dealerships, Datta said.
As auto originations increase, Upstart — which also offers HELOCs — sees overlapping demand from its investor base for both products, Datta said.
“When we open a new product category, [current investors] view that as an interesting opportunity,” he said. “They can follow us into that category. On the other hand, that new category also creates the opportunity for new relationships for us.”
Upstart’s overall originations volume in July totaled $1.4 billion, up 34% YoY but down 6.8% quarter over quarter compared with an average uptick of 5.4% QoQ in July 2023 through July 2025, according to an Aug. 3 research note by John Hecht and other Jefferies analysts.
The analysts noted that July volume points to a strong Q3.
Forward-flow a priority
Upstart aims to market overall ABS deals about once a quarter, Datta said, with flexibility to move up to five transactions over the course of a year if an attractive issuance window arises or move down to three if conditions are volatile.
The company might “increase the deal size” beyond that, but not necessarily frequency, Datta said.
He also noted that Upstart primarily aims to offload loans to buyers through forward-flow arrangements, then structure loans in an ABS deal as a secondary option depending on liquidity needs.
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