Zest AI, a key provider of software for AI-driven lending, has announced that Blue Federal Credit Union has selected Zest in order to help it deliver faster and more accurate loan decisions “across the credit union’s auto, credit card, and personal loan portfolios.”
As mentioned in a release, Zest AI software allows credit unions and banks to “leapfrog the limitations of legacy scoring methods and approve more borrowers safely by harnessing more data and better math.” Zest-built credit underwriting models “use 10 times more variables to create a far more accurate view of borrower risk,” the update revealed.
Jason Buchanan, Chief Credit and Risk Officer at Blue Federal Credit Union, stated:
“Zest will be a big win for our members. Zest has really built its program to satisfy the needs of lenders and regulators, and this will help Blue grow in new ways. Zest will also allow Blue to reach underserved borrowers across the credit spectrum while maintaining our standards of compliance and credit risk management. The granularity we have access to through Zest is broad and provides all of the features and details we need to explain our credit decisions.”
When the Zest-built models go live in early 2022, Blue expects to “achieve a 30% increase in approval rates across its portfolios and accelerate loan decisions to less than five seconds, delivering immediate value to its members in convenience and better service.”
Mike de Vere, CEO of Zest AI, remarked:
“We’re excited to help Jason and the team at Blue join the front ranks of credit union innovators. A Zest-built model gives them transparency, control, and a faster and more accurate decision that approves more members. Blue’s investment in Zest is really an investment in its community.”
Zest AI, a registered Credit Union Service Organization (CUSO), has helped more credit unions and banks switch to AI-driven lending “than any other player in the financial industry.” Zest credit union customers alone “represent $56 billion in assets and 4 million members,” the announcement noted.
As noted in the update, Zest AI software helps lenders make better decisions and better loans—increasing revenue, “reducing risk, and automating compliance.”
Zest AI was established in 2009 with the goal of “making fair and transparent credit available to everyone and is now the leader in software for more inclusive underwriting.” The company is headquartered in Los Angeles, California.