LendingClub Corp. and Pagaya Technologies have partnered to acquire the intellectual property of the now defunct fintech Tally, the companies announced Wednesday.
Tally, which closed its doors in August due to a funding crunch, aimed to simplify credit card management by linking users’ credit cards, automating card payments, and adopting ways to minimize interest costs and avoid late fees.
Tally launched an embedded, white-labeled business-to-business credit card debt management platform for its partners in April.
The acquisition has been finalized, according to a LendingClub spokesperson. LendingClub Bank, a subsidiary of LendingClub Corp., will incorporate Tally’s technology into its existing products, such as debt monitoring and management solutions, which are part of a broader member engagement strategy, the spokesperson said in an email.
With the acquisition and the onboarding of a few former Tally staff, LendingClub aims to boost its member engagement platform and growth.
“Tally's credit card management platform – along with a few select former Tally employees who have joined our team – will bolster those efforts and accelerate our strategy to empower and engage our members with full visibility into their credit card debt,” LendingClub CEO Scott Sanborn said in a statement Wednesday.
He added that since credit card debt and interest rates are at historic levels, “the need for better tools and solutions has never been greater, and so we're excited to accelerate our innovation in this area.”
The acquisition will benefit around 5 million customers of the $9.2 billion-asset bank, according to the company.
The financial terms of the deal were not disclosed.
Meanwhile, Pagaya will integrate Tally's product solution into its existing product suite as a new, value-added offering for its partners, according to a Pagaya spokesperson. It is “accretive to our overall/long-term goal of providing premier lending product solutions to our partner network,” the Pagaya spokesperson told Banking Dive via email.
Pagaya, with its network of 31 lenders and 120 investors, seeks to integrate Tally into its white-label B2B offerings, allowing partner lenders to provide credit management solutions to their customers.
“We are committed to leveraging Tally's technology to create tailored solutions that meet the diverse needs of our lending partners and their customers,” Sanjiv Das, president of Pagaya, said in a statement.
Pagaya bought consumer credit funds manager Theorem Technologies in August, boosting its fund capital to $3 billion upon closing. However, the company spokesperson noted that Tally’s acquisition is unrelated to Pagaya’s Theorem deal.
Founded in 2015, Tally helped consumers pay down more than $2 billion in debt with its automated debt manager solution. Its most recent valuation was $855 million, with a workforce of 183 employees, according to PitchBook data.
“While this is the end for Tally, our expectation is that it is not the end of our mission,” founder and CEO Jason Brown said in a LinkedIn post in August. “The need for financial tools that truly help people is as critical as ever. I hope that what we started with Tally will inspire others and influence new ideas and approaches to managing debt.”
