Pagaya
Pagaya, founded in 2016, leverages AI to enhance credit approvals and asset evaluations, partnering with over 25 financial institutions and operating offices in New York and Tel Aviv.
History
Pagaya was founded in 2016 and has grown rapidly since then. Starting as an ambitious fintech company, Pagaya has expanded its workforce to over 600 employees and established offices in New York and Tel Aviv. The company has attracted attention and capital, raising more than $1 billion across two ABS deals as of March 2024. Pagaya has also secured a $280 million credit facility from major lenders like BlackRock, UBS, and JPMorgan Chase in February 2024, and closed a $400 million consumer loan deal in January 2024.
Services
Pagaya offers advanced AI-powered credit analysis services that integrate seamlessly with existing approval flows via API. This enables partners to approve more customers and expand access to credit without undue risk. Pagaya's AI network evaluates customer applications and typically assumes the risk of approved assets. Their solution helps partners boost customer conversions by up to 30%, enhance credit approval rates, and build deeper relationships with their clients.
AI Technology
Pagaya's AI model leverages thousands of data points, including traditional credit attributes and loan and asset performance data, to generate tailored recommendations for credit decisions. The AI network does not use personal identifiable information (PII) or alternative data that might pose compliance issues under U.S. fair lending laws. This technology enables partners, such as banks and fintechs, to enhance their customer evaluation processes, allowing for fast and frictionless application evaluations and real-time decisions.
Partnerships
Pagaya partners with over 25 financial institutions, including banks, credit card networks, auto lenders, fintechs, and merchants. Notable partnerships include collaborations with Exeter Finance to scale auto lending products and Westlake Financial to strengthen auto product offerings. The company also engages with fintech partners like Market Place Lenders and BNPL Providers, helping them expand their services and customer engagement strategies.
Employee Expertise
Pagaya employs more than 600 individuals, including over 150 data scientists and researchers who work on advancing the company's AI technologies. This team of experts focuses on developing sophisticated AI models that analyze massive datasets to improve credit decision-making and asset evaluations. The combined expertise of Pagaya's workforce is pivotal in maintaining the company's innovative edge in the fintech sector.