Treasury launches AI push
The Treasury launched an AI Innovation Series to strengthen the financial sector’s resilience and modernize operations with advanced AI tools (home.treasury.gov). At the same time Pagaya’s AI‑driven credit network is expanding, connecting lenders and investors in an asset‑light model that lifts fee revenue — a concrete example of AI remaking credit markets (finance.yahoo.com).
The Treasury and the FSOC Office announced the AI Innovation Series on March 23, 2026, and said the initiative will run four public‑private roundtables to identify regulatory frictions that affect scaling AI in finance. (publicnow.com)) Treasury’s Chief AI Officer Paras Malik, who leads the department’s AI Transformation Office and has described a “human‑centered” governance approach in public remarks, is a named lead on the initiative. (aws.amazon.com)) Organizers said the roundtables will convene banks, technology firms, regulators and subject‑matter experts to examine highest‑value AI use cases and practical approaches to scaling while preserving safety and soundness. (bankersonline.com)) The SEC has already taken part in the FSOC convening stream: SEC Chair Paul S. Atkins delivered remarks at an FSOC AI Innovation Series roundtable on March 4, 2026, signaling interagency coordination. (sec.gov)) Pagaya’s latest filings show the company generated $1.3 billion in total revenue for full‑year 2025, $81 million in GAAP net income and adjusted EBITDA of roughly $371 million on an annual network volume of about $10.5 billion. (businesswire.com)) Pagaya reported that point‑of‑sale and auto lending together accounted for roughly 30–32% of network volumes as it diversified beyond personal loans, and the firm has executed multiple ABS transactions including a $400 million auto RPM deal announced in March 2026. (marketscreener.com)) Management guided 2026 network volume to $11.25–$13.0 billion, total revenue to $1.40–$1.575 billion and adjusted EBITDA to $410–$460 million while flagging an intentional pullback from single‑family‑rental exposure to tighten risk. (intellectia.ai)) Pagaya’s funding strategy relies on ABS issuance and forward‑flow commitments — the company has disclosed forward‑flow purchase agreements with Castlelake for up to $2.5 billion and expanded POS funding with SoundPoint for up to $720 million in recent filings. (ainvest.com)) The Treasury’s roundtable series follows February 2026 releases of voluntary AI resources for the financial sector, positioning regulators and market actors to discuss governance specifically as firms like Pagaya scale fee‑driven, securitization‑backed credit networks. (federalnewsnetwork.com))
