How Fintechs Use AI for Real-Time Purchase APR Optimization

Fintech Conversations with Fexingo: Banking, Payments, and Financial Software Companies · Jul 4, 2026 · 9m · transcript

In this episode of Fintech Conversations, Lucas and Luna explore how fintechs are using AI to dynamically optimize purchase APRs in real time. They break down how lenders like Upstart and Affirm adjust interest rates based on transaction-level risk, spending behavior, and macroeconomic signals—rather than relying on a static APR at account opening. The hosts discuss how this model benefits both consumers and lenders: consumers get lower rates for low-risk purchases, while lenders reduce default risk and increase approval rates. Lucas cites a case where a fintech reduced charge-offs by 18%…