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Rhea-AI Summary

LendingClub (NYSE: LC) and Pagaya Technologies (NASDAQ: PGY) have jointly acquired the intellectual property of Tally Technologies, a credit card management platform. LendingClub will integrate Tally's technology to enhance its member engagement platform, serving its 5 million members with better debt management tools. Pagaya will incorporate Tally's B2B solutions into its product suite for its 31 lending partners. Tally's platform, which ceased operations in August 2024, automated credit card payments and helped users reduce interest costs and avoid late fees.

Positive

• LendingClub gains technology to enhance debt management services for 5 million members
• Pagaya expands B2B product offering to 31 lending partners
• Strategic acquisition strengthens both companies' technological capabilities in credit management

Negative

• Acquisition of assets from a ceased operation (Tally) may pose integration risks
• Investment required for technology integration and development (cost impact)

Insights

Financial Analyst

The acquisition of Tally's intellectual property by LendingClub and Pagaya represents a strategic move in the consumer credit management space. With $1 trillion in U.S. credit card debt and rising interest rates, this technology acquisition positions both companies to capitalize on growing demand for debt management solutions.

For LendingClub, integrating Tally's technology into their platform could enhance user engagement and create new revenue streams through improved credit management services for their 5 million members. For Pagaya, incorporating Tally's B2B solutions into their AI-powered network expands their product offering to 31 lending partners, potentially increasing their market share in the fintech space.

The timing is particularly strategic given current market conditions, with credit card debt at historic highs. This positions both companies to address a growing market need while potentially reducing customer acquisition costs through enhanced service offerings.

Tech Expert

Tally's technology stack represents significant value in automated credit management capabilities. The platform's ability to optimize payments and reduce interest costs through AI-driven decisions is particularly valuable in today's high-interest environment. The integration potential with LendingClub's existing infrastructure and Pagaya's AI network creates powerful synergies.

The white-label B2B platform is especially noteworthy, as it allows for rapid scaling across multiple financial institutions without requiring extensive development resources. This could accelerate both companies' market penetration while maintaining cost efficiency. The technology acquisition also brings immediate intellectual property advantages, bypassing years of development time.

LendingClub to leverage Tally's credit management solutions to benefit the bank's 5 million members

Pagaya adds Tally's B2B credit management solution to its product suite offering for its over 30 lending partners

SAN FRANCISCO and NEW YORK, Oct. 9, 2024 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), operator of America's leading digital marketplace bank, and Pagaya Technologies LTD (NASDAQ: PGY), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced that they partnered together to acquire the intellectual property behind Tally Technologies, Inc. ("Tally").

Tally's innovative technology simplified credit card management, helping users optimize payments, reduce interest, and improve credit health. Tally's consumer solution allowed users to link credit cards, automate card payments, and adopt strategies to lower interest costs and avoid late fees. The company also created an embedded, white-label business-to-business credit card debt management platform leveraging the same functionality.

LendingClub uses proprietary technology and data to provide consumers with compelling solutions to reduce the cost of their debt and pay it off more quickly. This transaction will accelerate the evolution of LendingClub's member engagement platform to drive future growth.

"LendingClub is committed to building innovative tools and solutions that help our members better manage their debt and keep more of what they earn," said LendingClub CEO, Scott Sanborn. "Tally's credit card management platform – along with a few select former Tally employees who have joined our team – will bolster those efforts and accelerate our strategy to empower and engage our members with full visibility into their credit card debt. With credit card debt and interest rates at historic highs, the need for better tools and solutions has never been greater, and so we're excited to accelerate our innovation in this area."

Pagaya's AI-powered network of 31 lending partners and 120 institutional investors aims to be the preeminent consumer lending technology solution for the financial ecosystem. Pagaya will focus on enhancing its white-label B2B solutions, incorporating the Tally product as a value-added offering for its network of lending partners. This strategic move allows Pagaya to deliver advanced credit management solutions that lending partners can offer to their customers under their own brands.

"Integrating and embedding Tally into our B2B offerings significantly enhances the value we provide to our partners through our suite of cutting-edge products," said Sanjiv Das, President of Pagaya. "We are committed to leveraging Tally's technology to create tailored solutions that meet the diverse needs of our lending partners and their customers."

Tally ceased operations in August 2024, after which its assets became available for purchase pursuant to a process facilitated by an affiliate of Sherwood Partners, Inc. With LendingClub and Pagaya leveraging Tally's intellectual property, Tally's innovations can continue to benefit consumers for years to come.

About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.9 million members have joined the Club to achieve their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

About Pagaya Technologies
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. For more information, visit pagaya.com.

LendingClub Contacts:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com

Pagaya Contacts:
For Investors and Analysts: ir@pagaya.com
Media Contact: press@pagaya.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub--pagaya-acquire-assets-of-tally-technologies-302270848.html

SOURCE LendingClub Corporation

FAQ

What did LendingClub (LC) and Pagaya (PGY) acquire from Tally Technologies?

They jointly acquired Tally Technologies' intellectual property, including its credit card management platform and B2B solutions.

When did Tally Technologies cease operations before the acquisition?

Tally Technologies ceased operations in August 2024.

How many lending partners will benefit from Pagaya's integration of Tally's technology?

Pagaya's network includes 31 lending partners who will have access to Tally's B2B credit management solutions.

How many members does LendingClub serve that will benefit from Tally's technology?

LendingClub serves 5 million members who will benefit from the enhanced credit card management capabilities.