Zest AI secures growth capital from Fintech investors, strategic partners and customers to advance the next generation of AI-automated underwriting

Co-led by Insight Partners and CMFG Ventures, this investment from new and existing investors will support Zest AI’s next phase of growth in the rapidly evolving lending industry and signals confidence in the company’s ability to expand regardless of be the economic conditions.

LOS ANGELES, November 2, 2022 /PRNewswire/ — Zest AI, the leader in underwriting automation with more accurate and inclusive AI-powered loan information, today announced that the company has raised over $50 million into a new cycle 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 United States,” said Mike deVere, 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 at 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 lenders, such as Citibank, First National Bank of OmahaTruist, Golden 1 Credit Union, Suncoast Credit Union, and Hawaii USA Federal Credit Union, have partnered with Zest AI to modernize their lending business.

“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 JohnsonExecutive 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.

About Zest AI

Zest AI is a technology company whose mission is to make fair and transparent credit accessible to everyone. Since 2009, we have been working with financial institutions to provide their borrowers with AI-powered credit solutions. Today, we work with all types of lenders, but especially credit unions, to democratize underwriting automation and fair credit decision-making. Learn more about Zest.ai and connect with us on Twitter and LinkedIn.

About Insight Partners

Insight Partners is a global software investor that partners with high-growth technology, software and internet startups and ScaleUp companies that are driving transformative change in their industries. Of the June 30, 2022the company has more $80 billion in regulatory assets under management. Insight Partners has invested in over 700 companies around the world and has seen over 55 portfolio companies complete an IPO. Based at New York CityInsight has offices in London, Tel Avivand Palo Alto. Insight’s mission is to find, fund and work successfully with visionary executives, providing them with hands-on, hands-on software expertise of the right size, at the right time, throughout their growth journey, first investment at IPO. For more information about Insight and all of its investments, visit insightpartners.com or follow us on Twitter @insightpartners.

About CMFG Ventures

CMFG Ventures is the venture capital arm of CUNA Mutual Group, a trusted partner of credit unions since 1935. More than 95% of U.S. credit unions rely on CUNA Mutual Group for a wide range of financial products and services, each developed with one goal in mind. : To create financial security for American workers. CMFG Ventures has invested in over 50 fintechs to help financial institutions grow and deliver a better financial future for all. Visit the CMFG Venture website for more details. Learn more about its Discovery Fund, which supports diversity in fintech, here.

Contact: [email protected]


About Ellie Cohn

Check Also

Business lending application, VeriLoan, now available on Finastra’s FusionFabric.cloud

Copyright 2022 PR Newswire. All rights reserved2022-11-16 Supports digitization of front-end functions critical for banks …