(Reuters) -Investment firm Carlyle Group ( CG ) has partnered with U.S. banking giant Citigroup ( C/PN ) to provide asset-backed financing to fintech lenders, the companies said on Thursday.

As part of the partnership, Carlyle and Citi will share market intelligence, and explore co-investment and financing opportunities, the companies added.

The rise of fintech lending, fueled by convenient application processes and flexible credit, is pushing traditional financial heavyweights to gain exposure to the space.

Facing surging demand from borrowers, fintech lenders are also increasingly turning to investment firms for capital.

"Demand for scalable and tailored asset-backed financing solutions from fintech lenders has increased as they mature and seek efficient ways to fund their growth," said Akhil Bansal, head of asset-backed finance at Carlyle.

Asset-backed financing is a type of lending secured by a pool of assets, and is one of the fastest-growing segments of the private credit market.

Citi also has a $25 billion private credit partnership with Apollo.