LendingClub and Pagaya Acquire Tally Technologies' IP Assets
On October 24, 2024, LendingClub announced it had partnered with Pagaya, an AI-driven financial technology company, to acquire intellectual property assets from Tally Technologies. Tally was a fintech that offered automated credit card debt management and payoff tools before ceasing operations. The acquisition allows LendingClub, which holds a bank charter as a digital marketplace bank, to integrate Tally's technology into its lending platform.
Pagaya, known for its AI-powered credit decisioning and asset origination network, contributed to the deal as a partner. Financial terms were not fully disclosed. The transaction reflects a broader trend of chartered banks and their fintech partners acquiring distressed fintech IP to bolster embedded lending and credit management offerings.
It also demonstrates the continued convergence of bank-fintech partnerships in consumer credit markets.
- Bank-fintech partnerships increasingly absorb distressed fintech assets, concentrating embedded lending capabilities among established players
- AI-driven credit decisioning partners like Pagaya gain deeper integration with chartered banks, expanding the BaaS lending value chain