Zest AI secures growth capital from Fintech investors, strategic partners and customers to advance the next generation of AI-automated underwriting
Zest AI, the leader in underwriting automation with more accurate and inclusive AI-powered loan insights, announced today that the company has raised over $50 million in a new round of growth. The round was co-led by existing global software investor Insight Partners and new investor CMFG Ventures, with participation from CU Direct, Curql, Suncoast Credit Union, Golden1 Credit Union, Hawaii USA Federal Credit Union and NorthGate Capital.
“We are working to build a better future for the financial services ecosystem where underwriting is fast, fair and frictionless across the United States,” said Mike de Vere, CEO of Zest AI. “Our job is to help our customers approve more loans efficiently and with confidence, creating economic opportunity for all consumers.”
Zest AI plans to use the new funding to rapidly expand access to AI-automated credit underwriting for all lenders. By expanding access to this technology, Zest AI will power more accurate and consistent underwriting decisions, leveling the playing field for all borrowers and fostering a more inclusive economy.
“Zest AI’s accelerated growth is a testament to the power and value of its advanced explainable AI technology for loan underwriting,” said Lonne Jaffe, Managing Director of Insight Partners. “By using more features or ingredients in its prediction system, Zest’s clients can issue more loans, take less risk, and be more inclusive, while adapting more quickly to changing macroeconomic and explaining lending decisions more effectively. We look forward to doubling down on our partnership with Zest as they rapidly evolve.”
“Our credit union partners have found Zest AI’s technology to be a great way to automate their underwriting. Zest not only empowers credit unions to make better lending decisions, but also expands access to more affordable credit at all credit levels,” said Mike Kraus, Director. at CMFG Ventures. “The timing for credit unions to embrace more inclusive credit underwriting couldn’t be better, and we’re excited to help demonstrate Zest’s value to the industry.”
The company is on track to nearly double its customer base in 2022 after tripling it in 2021. To date, the company has built over 250 AI subscription models. A number of the most innovative lending organizations, such as Citibank, First National Bank of Omaha, Truist, Golden 1 Credit Union, Suncoast Credit Union, and Hawaii USA Federal Credit Union, have partnered with Zest AI to modernize their businesses loan.
“Zest AI is transforming the financial services landscape – especially for credit unions and their members. The future of underwriting is automation and the ability to deliver better financial products and superior customer service. Investing in Zest means investing in the financial well-being of our members Our support will fuel the company’s loyalty to advancing AI in lending to benefit all credit union members from coast to coast. said Darlene Johnson, executive vice president and chief growth officer at Suncoast Credit Union.
As more financial institutions adopt artificial intelligence tools to make better credit decisions, Zest AI is well positioned to transform the industry. Zest’s technology uses AI to identify, predict and eliminate inherent biases and make lending decisions more consistent and fair. The technology allows clients to approve more borrowers without taking on more risk, resulting in a 25% increase in approvals and full automation.