Pagaya invests in AI in Q2

Fintech Pagaya was focused on internal growth and technology investments in the second quarter, resulted in an 83% year-over-year increase in total revenue. In Q2, the tech company, which leverages artificial intelligence (AI) infrastructure for the financial ecosystem, “invest[ed] in areas such as headcount, artificial intelligence development, public company readiness and bank partnerships,” Chief Financial Officer Michael Kurlander said during Wednesday’s Q2 earnings call, noting Pagaya’s employment had grown to 800 from 200 since 2021. [caption id="attachment_219948" align="alignright" width="221"] Image by CanStock [/caption] The investments in AI and partnerships specifically contributed to Pagaya’s Q2 earnings growth, according to the earnings presentation. Total revenue for the quarter grew to $182 million from $99 million during the same reporting period in 2021. Meanwhile, total operating expenses increased to $332 million from $89 million in Q2 2021, according to the earnings supplement. “While our operating expenses are currently at an elevated level as a percentage of revenue, we believe we can reach a steady state of 20% of operating costs to total revenue,” Kurlander said. As Pagaya’s revenue grew, so did its network volume, according to the presentation. In fact, in the first half of 2022 the company generated an additional $3.6 billion in network volume, Kurlander said, noting, “This $3.6 billion figure represents the assets that were acquired by financing vehicles with the assistance of our AI technology.” Pagaya partners Along with expanding existing partnerships with financial institutions including Flagship Credit Acceptance , Pagaya is also looking to new partners for growth opportunities, Kurlander said, noting its recent deals with Ally , SoFi and Visa . Visa, for one, partnered with Pagaya earlier this year to leverage the company’s technology in order expand customers’ access to financial products through its AI capabilities. More recently, Pagaya onboarded a “large U.S. bank … with over $100 billion in assets as a major partner for our auto product,” Kurlander said during the call, without naming the financial institution. Looking ahead, Pagaya plans to stay the course with AI and partnerships “across fintechs, banks and other financial institutions,” Kurlander said, adding, “The most substantial opportunity ahead of us is partnerships with big banks in the U.S.” [stock_market_widget type="inline" template="generic" assets="PGY" markup="{name} ({symbol}) is trading at {price} ({change_pct}) as of{last_update}" display_currency_symbol="true" api="yf"] Bank Automation Summit Fall, taking place Sept. 19-20 in Seattle, is a crucial event on automation and automation technology in banking. Learn more and register for Bank Automation Summit Fall 2022 .

Pagaya invests in AI in Q2

Total revenue increased 83% YoY to $182M

Fintech Funding: Arc secures $20M series A

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Pagaya invests in AI in Q2

Total revenue increased 83% YoY to $182M

Fintech Funding: Arc secures $20M series A

Why banks should engage citizen developers for digital transformation

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