Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 118

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 118
---
 and data science to improve upon traditional credit metrics and rules-based underwriting approaches, which are based on a limited number of variables. We believe we benefit, as is typically characteristic of AI and machine learning, from a flywheel effect: incremental training data points—from new applications, new Partners and asset classes—enable enhanced intelligence, which can drive better results for our Partners and investors, which can lead to increased application volume from existing Partners as well from the addition of  new Partners as we strengthen our value proposition. Our AI technology is designed to identify attractive risk-reward opportunities for investors in our Financing Vehicles, by pricing risk more efficiently than traditional methods. 

The Pagaya network is designed to offer streamlined integration with Partners, via modern APIs. Once connected, our network provides an automated solution for transactions, whereby Partners’ customer applications are processed with minimal latency. 

We believe that the growth in our Network Volume demonstrates our ability to scale quickly, as our network generated approximately $9.7 billion in Network Volume in the year ending December 31, 2024, as compared to approximately $1.6 billion in Network Volume in the year ended December 31, 2020.

Our Growth Strategies

Expand our product to new, enterprise-level lenders

In 2024, we further expanded our network by onboarding several new partners, including OneMain Financial, a leading consumer finance company, and Avvance, the point-of-sale leading solution offered by US Bank and Elavon, strengthening our presence in auto, personal loan and point-of-sale products. We believe that the addition of each enterprise-level lender could represent an opportunity to connect to millions of new consumers and expand across multiple products and markets. Our existing partner growth and new partner pipeline remain robust, with leading institutions across all asset classes. We continue to make significant progress in monetizing existing partnerships, adding new products to long-standing relationships, and ramping those that are newer to our network.

Deepen Existing Partnerships and enhance network monetization

Higher customer conversion from our flagship product has unlocked opportunities to help our lending partners further monetize their customer relationships, enhance customer lifetime value and remain their customers’ lender of choice. This creates new monetization opportunities for Pagaya. As we continue to demonstrate our value-add, we will work closely with newer partners to elevate existing economic arrangements to the levels we have with our more mature partners. The growth in our Fee Revenue Less Production Costs (FRLPC) continues to be driven by fees from our lending partners, which comprised 69% of total