A survey from Bankrate shows that 50% of loan applications are denied. Pagaya Technologies (PGY) aims to use AI tools to help boost the amount of approved loan applications for borrowers.
Pagaya CEO Gal Krubiner joins Wealth! to discuss how his company can help consumers gain access to credit they otherwise wouldn’t be able to access through the use of AI.
Krubiner outlines exactly how his company is able to help consumers: "We are connecting to the banks that otherwise would have denied these borrowers, and we’re helping them use AI to identify the borrowers that should actually get a credit. And by that, reducing the 42 or the 50% lower to be able to help them help their customers."
He adds: "The interesting side is that the money we’re using is not the bank’s balance sheet. We’re actually created on the other side of our network, a very strong, stable funding capabilities that is based on the biggest asset managers and pension funds and insurance companies in the world. To be able to fund all these additional loans that are actually a very good performing loans of the people that otherwise the regulatory environment in the banking system will actually deny them."
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