11 Best Financial Services Stocks to Buy Right Now

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 96

Carlyle Group has collaborated with Citigroup Inc. (NYSE:C) to offer asset-backed lending to fintech lenders, the companies announced on June 12.

Both companies are collaborating to share market knowledge and look into co-investment prospects in order to promote the expanding fintech lending industry.

Fintech lending has grown quickly due to growing borrower demand and digital ease, which has led to traditional institutions like Citigroup Inc. (NYSE:C) becoming more involved. As businesses expand, fintech lenders are increasingly looking to investment firms for funding.

Akhil Bansal, head of asset-backed finance at Carlyle, stressed the rising need for customized, scalable solutions. The fastest-growing segment of private lending is asset-backed finance, which is backed by a collection of financial assets.

This transaction shows Citigroup Inc. (NYSE:C)’s larger strategic focus on private lending and strengthens the bank’s $25 billion private credit agreement with Apollo. The collaboration displays Carlyle and Citigroup Inc. (NYSE:C)’s intention to profit from changes in the structure of the credit markets.