US Bank Taps Pagaya’s Credit Intelligence Network for Personal Loans

U.S. Bank said Thursday (Feb. 15) that more than 2,000 of its clients have been approved for personal loans over the past few months thanks to the technology and credit intelligence network enabled by the bank’s partnership with Pagaya Technologies.

The bank teamed up with the global technology company to expand access to credit to a wider range of clients, U.S. Bank said in a Thursday (Feb. 15) blog post.

This partnership leverages Pagaya’s artificial intelligence (AI)-powered product solutions for lenders, according to the post.

Now, when a U.S. Bank client applies for a personal loan but doesn’t meet its traditional requirements, Pagaya completes a secondary review via its AI-powered credit decisioning capabilities, the post said. If the borrower is approved, U.S. Bank originates the loan and service the client over the life of the loan.

“We know that we have many clients who don’t fall within our traditional credit parameters,” Mike Shepard, head of consumer lending partnerships at U.S. Bank, said in the post. “By expanding access to responsible credit solutions, we are giving clients access to funds when they need it most, through their existing and trusted banking relationship with us.”

This technology-powered collaboration offers a solution to cases in which borrowers don’t meet traditional requirements for personal loans, such as credit score, debt-to-income ratio and credit history, per the post.

“We share U.S. Bank’s commitment to increasing access to life-changing financial products and services,” Leslie Gillin, chief growth officer at Pagaya, said in the post. “With Pagaya’s integrated and seamlessly embedded lending technology, our lending partners can expand and deepen their client relationships to a more diverse group of borrowers.”

In another recent development, Pagaya said Feb. 7 that it secured a credit facility worth $280 million from top global asset managers and financial institutions that provides capital and liquidity to support its future growth and extend its corporate debt maturity to 2029.

Pagaya offers both consumer credit and residential real estate solutions. It has been expanding its network rapidly, securing four new lending partners in the last four months of 2023.

In September, the firm partnered with automotive FinTech company Westlake Financial to provide Westlake’s auto dealer partners access to Pagaya’s tech-enabled credit-decisioning product.