Personal loans serve as a practical means for individuals to consolidate debts, finance home improvements, or address unforeseen expenses. However, meeting the conventional lending criteria for such loans can pose a challenge to certain borrowers.
Unlike mortgage or auto loans that utilise property or vehicles as collateral, personal loans are unsecured, eliminating the need for collateral. Lenders assess various factors including credit score, debt-to-income ratio, and credit history to determine borrower eligibility.
Recognising an opportunity to extend the accessibility of personal loans to more clients, US Bank partnered with Pagaya Technologies, a global tech firm specialising in AI-powered solutions for lenders worldwide. Through this collaboration, US Bank aims to broaden its financial product offerings to a wider clientele, thereby enhancing access to credit and fostering greater financial opportunities for individuals.
Under this partnership, when a US Bank client applies for a personal loan that falls outside the traditional lending criteria, Pagaya conducts a secondary review using its AI-driven credit assessment capabilities. If approved, US Bank proceeds to originate and service the loan throughout its term.
US Bank’s client-centric solutions
US Bank representatives acknowledged that a significant number of their clients may not meet the usual credit requirements. They emphasized that by offering responsible credit solutions, they are ensuring clients have access to funds exactly when required, capitalizing on the established and dependable banking rapport they have with US Bank.
Within a short span, over 2.000 US Bank clients have been successfully approved for personal loans utilising this technology and credit intelligence network.
Pagaya representatives affirmed their alignment with US Bank’s dedication to expanding access to innovative financial products and services. They highlighted that Pagaya’s integrated lending technology enables lending partners to strengthen and broaden their relationships with clients, reaching a more diverse range of borrowers.
In addition to facilitating access to capital through personal loans, the US Bank Simple Loan offers clients the ability to address short-term cash needs ranging from GBP 100 to GBP 1,000 through a transparent and easy-to-understand instalment loan. Since its launch in 2018, the US Bank Simple Loan has collectively saved borrowers nearly £40 million compared to borrowing from typical payday lenders.
