August 15, 2023
Gal Krubiner joined Benzinga LIVE, Hosted by Aaron Bry, to discuss Pagaya’s business model, recent Q2 results, and how we are helping banks provide more consumers with financial opportunities.
Some highlights from the interview:
- Pagaya’s mission: “Pagaya is trying to help banks and lenders to bring more consumers into the mainstream economy by allowing them to get access to credit and to financial products that they deserve. We have created the ability for a borrower to not get rejected and to get a loan from a very respected financial institution, like Ally. And we have allowed Ally to not give up a customer and keep them as theirs.”
- How Pagaya can help in today’s macro environment: “Especially in times when banks are shrinking their balance sheets, big institutions are stepping in to provide that liquidity for consumer credit. Pagaya, being a two-sided network with both their partners and investors, is actually facilitating these transactions with the AI as the engine behind it all.”
- Q2 earnings highlights: “From my perspective as CEO, I was very proud of the earnings we managed to achieve. We exceeded all of our outlooks – on network volume, which is how we capture how many loans we provided, as well as on revenue and EBITDA. Our two sided network concept, balanced in between investors and lenders has helped us tremendously navigate the macro economic turmoil, and allowed us to continue to beat our metrics. As such, we have raised our EBITDA guidance for the year to $40-50 million from $20 million. So, it’s a big increase because we have confidence as we look further into the year. A lot of that is because different lenders in the US are tightening their credit boxes and are actually sending us more applications and more opportunities for us to convert that into loans.”
- Pagaya’s ability to work with banks and credit unions: “Earlier in the year, we partnered with Angelo Gordon, which is a very big asset manager, and helped a credit union to free up some capacity on their balance sheet given all the movement in the interest rate. We facilitated that to the institutional client. We expect that to be repeatable – that there are different banks that may be having some headwinds and are looking to offload part of the balance sheets. We’ll work with different institutional clients to be able to facilitate that.”
- The Pagaya Team: “All of our success is coming with a lot of work that Pagayans around the world are [doing] day in and day out…. We call ourselves Pagayans – I’m a Pagayan. I want to make sure that people appreciate that it comes with a lot of prudent work [from our teams].”
View our earnings results and inaugural shareholder letter.
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