FinTech company Pagaya Technologies Ltd. has collaborated with digital personal finance company SoFi, according to a Monday (Oct. 18) press release. The joint effort will enable SoFi to expand members’ access to its financial products via Pagaya’s artificial intelligence (AI), technology and infrastructure, the announcement stated.
Pagaya, which was founded in 2016 and operates offices in New York, Israel and California, assists FinTechs, banks and other financial institutions (FIs) in providing customers with better access to financial offerings beyond traditional credit models, according to the release. Its machine learning models aim to minimize risk for lenders and assist in providing better-informed credit decisions.
Pagaya’s joint effort with SoFi is the company’s largest distribution of its technology in the FinTech arena to date, according to the announcement.
“Working with a company such as SoFi, we are able to apply our artificial intelligence in a way to not only help SoFi extend capital to more people, but to do so in a way that creates less risk for our partner,” said Gal Krubiner, Pagaya co-founder and CEO. “This creates a symbiotic, win-win-win ecosystem across all parties.”
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Monday’s announcement follows a PYMNTS report last month that Pagaya was contemplating an initial public offering (IPO) through a merger with blank check company EJF Acquisition Corp that would push its value to about $9 billion.
Pagaya, which employs more than 400 people, saw nearly $95 million in sales in the second quarter, and the firm is looking to enter the mortgage and insurance sector, sources told WSJ.
Last year, Pagaya raised $102 million as part of a Series D funding round. That funding brought the company’s issuances to more than $1 billion over an 18-month period, as PYMNTS reported.