Counting technologiesa consumer debt management company, sold its assets to a digital bank and fintech two months after its bankruptcy.
LendingClub Corporation, the parent company of LendingClub BankAnd Pagaya Technologies announced on Wednesday that it had acquired various parts of the intellectual property developed by Tally. Tally started as a consumer-centric app that allowed users to link their credit cards and strategize how to pay off their credit cards more efficiently and economically. In April, it pivoted to a business-to-business model with the launch of white-label credit card debt management software offering the same features and planned to discontinue its direct-to-consumer product in June.
Both buyers say this acquisition will improve or expand on the products they already offer.
LendingClub is based in San Francisco. The bank, with assets of $9.6 billion, will absorb Tally’s direct-to-consumer credit management assets. Scott SanbornCEO of LendingClub, said in a statement that several former Tally employees would join the bank.
“Loan Club is committed to creating innovative tools and solutions that help our members better manage their debt,” he said. “Tally’s credit card management platform…will enhance these efforts.” »
In the fourth quarter of 2023, LendingClub launched the debt monitoring portion of what it calls its debt monitoring and management solution in its app, which it is currently testing with a select group of customers. Tally’s capabilities will “accelerate the evolution of LendingClub’s member engagement platform,” according to the press release.
Paddlebased in New York and Tel Aviv, Israel, uses artificial intelligence to analyze data points that help banks and fintechs extend loans to borrowers who might otherwise be rejected under their legacy underwriting models. Its clients include Ally Financial, US Bancorp and Visa. Leslie Gillindirector of company growth, was named one of the most influential women in fintech by American Banker in 2024.
Pagaya will acquire Tally’s B2B credit management business, which it will extend to its lending clients as a white label product to complement its existing range of white label products, including personal loans and point of sale loans. sale.
“The integration and integration of Tally into our B2B offerings significantly enhances the value we bring to our partners through our industry-leading suite of products,” said Sanjiv Das, President of Pagaya, in the same press release.
In August, Tally founder and CEO Jason Brown announced the closure of his company on LinkedIn.
“After nearly nine years of helping people manage and pay off their credit card debt, we have made the difficult and sad decision to close Tally,” he wrote. “This is not the outcome we were hoping for, but after exploring all options, we were unable to secure the funding necessary to continue our operations.”
In a May story for American Banker, Brown recognized the challenges of operating a direct-to-consumer app as the reason he instead wanted to target fintechs, financial institutions and digital commerce sites with Tally’s capabilities.
“The core experience for consumers has been exceptional and the retention is fantastic, but the cost of convincing individual customers to download another app is higher than if we partnered with large institutions,” Brown previously told Reuters. ‘era.
