Affirm Stock Jumps on New AI Loan Underwriting Model

By EC Assets · Published 17 September 2026

Affirm Holdings, Inc. stock recently surged following news of a new AI model for loan approvals. The company launched a transformer-based machine learning model for real-time underwriting. This new model reportedly outperforms Affirm's existing system, developed over 18 months. Affirm also upgraded its credit risk evaluation processes. The company now embeds richer real-time financial signals into its underwriting, including up-to-the-minute bank account balances. Affirm's stock saw a notable rise after the October 31, 2025, announcement of an expanded capital partnership with New York Life. Demand for installment payments is rising. This trend occurs as inflation and gas costs pressure consumers. Affirm manages credit risk through disciplined underwriting amid this environment. The payment network also launched a new product. This product allows merchants to offer customers more choice and flexibility at checkout. This article is intended for informational purposes only. It does not constitute investment advice.