Latest news with #consumerloans
Bloomberg
14-07-2025
- Business
- Bloomberg
Castlelake to Buy Up to $2.5 Billion of Pagaya Consumer Loans
Castlelake LP has agreed to purchase as much as $2.5 billion of consumer loans from financial technology firm Pagaya Technologies, the latest in a string of deals for the AI-driven lender. The firm will buy the loans over a 16-month period through a so-called forward flow agreement, by which investors agree to snap up the loans before they are originated, according to a statement. The deal will help fund the expansion of Pagaya's personal loan program.
Bloomberg
12-07-2025
- Business
- Bloomberg
Turkish Regulator Expands Scope of Retail Loan Restructuring
Turkey's banking regulator allowed more citizens to restructure debt as tight monetary policy hurts low-income households dependent on card spending. Retail credit card debt and consumer loans may be restructured with a period of as long as 48 months, the Banking Regulation and Supervision Agency said in a statement late Friday. Citizens who failed to make periodic payments toward their card debt and those unable to repay the principal or interest on consumer loans can benefit from debt restructuring. People who previously have restructured debt are also eligible, according to the statement.
Yahoo
27-06-2025
- Business
- Yahoo
Amazing AI PLC Announces Bitcoin Treasury Policy Update
LONDON, GB / / June 27, 2025 / Amazing AI plc (AQSE: AI) - AAI, a global fintech group specialising in online consumer loans, announces an update to its Bitcoin Treasury Policy. AAI is in discussions with one of the world's largest regulated custodians of bitcoin who are highly experienced in setting up Bitcoin Treasuries and act for over 1,500 institutional clients in over 50 countries and hold over 100 billion USD of assets on their platform as custodian. AAI's proposed custodian, which has the ability to buy at lower spreads over-the-counter compared to crypto exchanges, will facilitate all purchases of bitcoin and provide secure cold wallet storage for AAI's bitcoin, avoiding crypto exchange hot wallet risk. Once engaged, the custodian will be able to provide financing against AAI's bitcoin providing AAI with the benefit of any appreciation in the value of the Bitcoin whilst also allowing it to leverage its bitcoin asset 50%. This can then be used to drive greater lending resources in its USA lending operation, which currently charges 59.9% per annum in the state of Georgia, and, in turn, revenues and profits. By way of example, if AAI was able to purchase £20 million of bitcoin in its Bitcoin Treasury, it could potentially borrow up to £10 million to lend out to consumers in Georgia, USA which the Board anticipate could be able to generate up to £5.99 million in additional recurring revenue to AAI per annum. In addition, AAI is currently incorporating a 100% owned subsidiary company in the bitcoin friendly jurisdiction of Mauritius. This entity will serve a dual purpose for both acting as the entity that will buy and hold bitcoin and for potential future expansion into consumer lending emerging markets utilising fiat. The Company will continue to focus on delivering its organic growth strategy centered on consumer lending and on exploring AI finance related services whilst growing a bitcoin treasury over the shorter-term. The Company intends to strategically allocate capital generated from its business operations and future fundraisings, with the aim of maintaining a treasury consisting of both traditional cash reserves and bitcoin. The Company is exploring potential fundraising opportunities for this purpose, following which, the Directors anticipate being in a position to commence bitcoin acquisitions in July 2025. Relevant material changes to its bitcoin treasury holdings and further updates on the Bitcoin Treasury Policy will be announced by the Company in a timely manner. Paul Mathieson, CEO of Amazing AI plc said,"The key difference between Amazing AI plc and most other companies with Bitcoin Treasuries is that we have an underlying consumer loans business that will be able to leverage up the benefits of Bitcoin Treasury by utilising borrowed funds against our Bitcoin Treasury to increase revenue growth in our existing US lending business, future potential Philippines and African lending businesses and our best-of-breed AI finance related services business." This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company accept responsibility for the contents of this announcement. Enquiries: Amazing AI plc Paul Mathieson - Chief Executive Officer iecenquiries@ Cairn Financial Advisers LLP (AAI Corporate Adviser) Ludovico Lazzaretti +44 (0) 20 7213 0880 Jo Turner Oberon Capital (AAI Corporate Broker) Adam PollockNick LoveringJessica Cave +44 (0) 203 179 5300 Professional/institutional investors can contact Oberon Capital on corporatesales@ About Amazing AI plcAmazing AI plc (AAI) is an AI driven, consumer finance fintech innovator that leverages its regulated licensed lending and collections operations, experience and network to distribute best-of-breed AI finance related services globally, specifically focused on lending, collections and debt financing services. AAI operates under the consumer brand Mr. Amazing Loans in the United States with state consumer lending licenses/certificates of authority and an established track-record of lending, collections and regulatory compliance for over 14 years. AAI intends to investigate further utilisation of AI in its own US consumer lending operational processes and seek additional strategic collaborations, joint ventures and acquisitions in the AI sector globally, including in AI deception detection services to increase underwriting and collections performance. AAI also plans to investigate the potential to conduct its own enhanced product/service development, territory customisation and new service initiatives. For more information please visit: Important Notices Amazing AI plc (the "Company") intends to hold treasury reserves and surplus cash in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK (the "Financial Conduct Authority" or "FCA") considers investment in bitcoin to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in bitcoin, either directly or by proxy. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company's reserves and, accordingly, the Company is materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company's position in this regard. The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK's Financial Ombudsman Service or the Financial Services Compensation Scheme. Nevertheless, the Board of Directors of the Company has taken the decision to invest in bitcoin, and in doing so is mindful of the special risks bitcoin presents to the Company's financial position. These risks include (but are not limited to): (i) the value of bitcoin can be highly volatile, with value dropping as quickly as it can rise. Investors in bitcoin must be prepared to lose all money invested in bitcoin; (ii) the bitcoin market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell bitcoin at will. The ability to sell bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) crypto assets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands. The Board of Directors of the Company does not subscribe to such a negative view, especially in relation to bitcoin. However, prospective investors in the Company are encouraged to do their own research before investing. Caution Regarding Forward Looking StatementsCertain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@ or visit SOURCE: Amazing AI PLC View the original press release on ACCESS Newswire
The Independent
26-06-2025
- Business
- The Independent
Your credit score might soon be impacted by Buy Now, Pay Later loans
Millions of Americans who rely on 'Buy Now, Pay Later' (BNPL) schemes for everything from clothing to concert tickets will soon see these short-term loans directly impact their credit scores, marking a significant shift in how consumer creditworthiness is assessed. Scoring giant FICO announced on Monday that it is rolling out a new model that will factor these popular payment plans into its consumer scores, which are used by the majority of lenders to determine a borrower's financial reliability. Previously, BNPL loans were largely excluded from credit reports, though Buy Now, Pay Later provider Affirm began voluntarily reporting 'pay-in-four' loans to Experian, a separate credit bureau, in April. The new FICO scores will become available to lenders as an option from the autumn, aiming to provide increased visibility into consumers ' repayment behaviour. However, widespread adoption may take time, as not all BNPL companies share data with credit bureaus, and not all lenders will immediately opt into the new models, according to Adam Rust, director of financial services at the non-profit Consumer Federation of America. The move comes as BNPL loans, typically structured as four interest-free instalments over six weeks with minimal or no credit checks, have become an increasingly significant part of the US credit ecosystem. FICO stated that its new model accounts for this growing trend. Julie May, vice president and general manager of business-to-business scores at FICO, said: "Buy Now, Pay Later loans are playing an increasingly important role in consumers' financial lives. We're enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products." FICO believes the new model will responsibly expand access to credit, particularly for younger consumers or those with limited credit histories. A joint study with Affirm, which trained FICO's new scores on over 500,000 BNPL borrowers, found that consumers with five or more loans typically saw their scores increase or remain stable under the new system. For those who consistently repay their BNPL loans on time, this could lead to improved credit scores, potentially enhancing access to mortgages, car loans, and apartment rentals. Currently, these loans do not typically boost scores, though missed payments can negatively affect them. However, consumer advocates have raised concerns. While BNPL providers promote these plans as safer alternatives to credit cards, critics warn of "loan stacking," where consumers take on multiple loans across various companies simultaneously. The previous opacity around this practice has led to warnings of "phantom debt" that could mask a consumer's true financial health. Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, expressed concern that integrating these loans into scores could have unforeseen negative effects on individuals already facing credit constraints. "There isn't a lot of information out there about how integrating BNPL into credit scoring will work out," Ms Chabrier said, noting that while FICO's simulation showed some users' scores increasing, the overall consequences are hard to predict without more detailed modelling information. She cited research indicating that many BNPL users already have revolving credit card balances, lower credit scores, delinquencies, and existing debt, with women of colour disproportionately using these loans. "This is a credit vulnerable community," Ms Chabrier added. Despite the changes, Adam Rust does not anticipate an immediate "game-changer" for consumers with established credit profiles. "Are we at a point where using BNPL loans will dramatically alter your credit profile? Probably not," he said, explaining that the average BNPL loan is around \$135, and consistent repayment of such small amounts may not significantly move the needle on a credit score. "It's not about going from 620 to 624. It's about going from 620 to 780," he clarified, referring to the substantial score jumps that impact credit card offers and interest rates. Nevertheless, Mr Rust acknowledged that increased transparency around BNPL loans could create a more accurate picture of a consumer's debts, potentially improving underwriting and preventing individuals from over-extending themselves. "This addresses the problem of 'phantom debt,' and that's a good thing," he concluded. "Because it could be something that keeps people from getting too deeply into debt they can't afford." The shift comes as millions of Americans have already seen their credit scores decline steeply since March, following the resumption of student loan payments.
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Will PGIM's $3B Facility Help Affirm Scale its BNPL Offerings Fast?
Affirm Holdings, Inc. AFRM has expanded its partnership with PGIM Fixed Income by establishing a new $3 billion revolving loan sale facility. This arrangement allows PGIM, a Prudential Financial, Inc. PRU unit, to purchase up to $500 million of Affirm's consumer loans at any given time over a 36-month period. This pass-through facility builds on PGIM's earlier $500 million investment made in December 2024 and reflects growing confidence in Affirm's loan portfolio. Through this facility, Affirm secured a reliable and flexible funding source for its buy now, pay later ('BNPL') offerings without the need to frequently tap volatile public debt markets. This development is significant because it enhances Affirm's financial stability and scalability. The revolving structure provides predictable access to capital, allowing Affirm to support loan growth and meet consumer demand even in fluctuating market conditions. It also demonstrates how large institutional investors like PGIM (over $145 billion in AUM) are increasingly embracing private credit arrangements with fintech companies. This is a positive signal for the broader BNPL industry as it matures into an asset class that significantly appeals to mainstream credit investors. Financially, the deal improves Affirm's funding flexibility and may reduce its overall cost of capital by limiting reliance on more expensive or less predictable public financing options. It also helps manage balance sheet risks, as the revolving structure caps the loan exposure at any time, ensuring liquidity and operational efficiency. Overall, this facility strengthens Affirm's capital position, supports growth and boosts investor confidence in its long-term business model. How PayPal and Block Are Expanding in the BNPL Space? PayPal Holdings, Inc. PYPL is strengthening its BNPL presence by launching a new physical PayPal Credit Mastercard, expanding usage both online and in stores. PYPL is also piloting in-store 'Pay Later' options in Germany, aligning with its 'PayPal Everywhere' strategy to drive broader adoption across retail channels. Meanwhile, Block, Inc. 's XYZ Afterpay is deepening its BNPL reach by integrating services into Cash App, offering in-app financing for eligible users. Additionally, Afterpay has expanded partnerships with merchants like StitchFix, PetMeds and Mejuri, enhancing its visibility at checkout. Both PayPal and Block are targeting seamless omnichannel experiences to capture the growing BNPL market. Affirm's Price Performance, Valuation and Estimates Shares of Affirm have gained 1.3% year to date, underperforming the broader industry and in line with the S&P 500 Index. Affirm's YTD Price Performance From a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 5.09X, down from the industry average. AFRM carries a Value Score of F. The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies a 100.6% improvement year over year, followed by massive growth next year. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
