Pagaya announces expansion into auto loans

NEW YORK & TEL AVIV, Israel–(BUSINESS WIRE)–Pagaya, a fintech company, has publicly announced the expansion of its consumer credit offering to auto loans, with hundreds of millions of dollars already invested in the space and multiple lending partners, including Flagship Credit Acceptance and Foursight Capital, the two leading providers of auto finance solutions.

Led by Pagaya’s new managing director of auto finance, Robert McDonald, the expansion comes at a time when US consumers are relying on their cars more than ever and buying new and used vehicles in droves. The importance of the automobile has been elevated during the pandemic. It’s no longer just a means of transportation, but a safe way to experience concerts, weddings, gatherings, movies, and graduations.

“Pagaya’s investment in auto finance ultimately increases the availability of credit for borrowers. This means automakers and car dealerships will be able to get more cars on the road, Pagaya’s lending partners will be able to better monetize their marketing spend, and more consumers will have access to better priced loans,” McDonald said. “Everybody wins.”

McDonald was previously Vice President, Head of Structured Finance for Automotive and Equipment at Goldman, Sachs & Co. He brings an invaluable wealth of experience, which will help drive Pagaya’s expansion in this area.

In addition to opening up new opportunities for market lenders, this shift to automotive finance has allowed Pagaya to work with original equipment manufacturers (OEMs) and their wholly-owned captive finance companies to attract more of borrowers in their ecosystem. More than 60% of captive borrowers remain loyal for future vehicle purchases. Pagaya’s ability to partner with OEMs to increase consumer conversion into an OEM’s ecosystem creates long-term sustainable value.

“We are excited to take the lead in this space and provide better options for lending platforms looking to originate more loans and for consumers who need reliable transportation,” said Gal Krubiner, co. -founder and CEO of Pagaya.

About Pagaya

Pagaya is a fintech company reshaping asset management by using machine learning and big data analytics to manage institutional money. With a focus on fixed income securities and alternative credit, Pagaya offers a variety of investment vehicles to institutional investors, including pension funds, insurance companies and banks. Pagaya’s unique technology platform, Pagaya Pulse, leverages a suite of state-of-the-art artificial intelligence and algorithm technologies to continuously deliver a scalable high performance advantage. The firm’s total assets under management are over $2 billion. Founded in 2016 by seasoned finance and technology professionals, Pagaya is headquartered in New York and Tel Aviv.