(Bloomberg) -- Pagaya Technologies Ltd. is expanding its reach in the auto-lending industry through a new partnership with OneMain Holdings Inc.
The partnership is aimed at helping OneMain provide loans to more consumers by using artificial intelligence to leverage more data in the loan-underwriting process. This can be particularly helpful for lenders like OneMain, which caters to less creditworthy borrowers who may have been historically shut out of accessing credit.
“This partnership represents our continued commitment to helping the country’s largest lenders provide more financial opportunity to their customers with our tech-enabled lending solution,” Sanjiv Das, Pagaya’s president, said in a statement.
Pagaya has a similar partnership with subprime auto lender Westlake Financial, as well as with Ally Financial Inc., Flagship Credit Acceptance and Foursight Capital. June survey data collected by the Federal Reserve Bank of New York showed the average reported probability of an auto loan application being rejected was more than 29%.
“Our partnership with Pagaya allows us to continue to serve hardworking Americans by furthering access to auto loans,” OneMain Chief Operating Officer Micah Conrad said in a statement. “We look forward to working toward a broader enterprise partnership with Pagaya.”
(Corrects quote in last paragraph to change reference to Pagaya, from company.)
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