The demand for AI-powered lending solutions is accelerating as financial institutions seek to modernize their operations and expand credit access. In a strong endorsement of this shift, Zest AI, a leading provider of AI-powered lending solutions, has announced the successful closure of an oversubscribed financing round. This strategic investment was uniquely led by five of the company's key customers: SchoolsFirst Federal Credit Union, Members 1st Federal Credit Union, ORNL Federal Credit Union, Truliant Federal Credit Union, and Citi, through Citi Ventures. The round signifies a major valuation increase for Zest AI and underscores the tangible value its technology is delivering within the financial services sector.
Zest AI secured an oversubscribed, customer-led investment round from key clients.
Leading credit unions and Citi Ventures participated as strategic investors.
The funding will expand Zest AI's automation and its GenAI platform, LuLu.
Lenders use Zest AI to improve approval rates and reduce risk and defaults.
The technology enables, on average, 25% more approvals with no added risk.
This investment validates the growing demand for responsible AI in lending.
This customer-led investment round serves as a powerful validation of Zest AI's technology and its impact on the lending industry. The participation of established financial institutions signals a mature and growing confidence in AI-driven underwriting. The new capital is earmarked to accelerate the expansion of Zest AI's automation initiatives across the entire borrower journey and to drive wider implementation of its Generative AI-powered lending intelligence platform, LuLu. This comes amid what the company describes as unprecedented demand for AI-enabled capabilities from lenders looking to improve accuracy, streamline operations, and drive growth.
The decision by customers to become investors is rooted in demonstrated, positive business outcomes. Bill Cheney, CEO at SchoolsFirst Federal Credit Union, stated, “Our instant approval rate has more than doubled. Institutionalizing Zest AI’s technology across our lending operations has been game-changing for our member experience and our business results.” The sentiment was echoed by Michael Wilson, CEO of Members 1st Federal Credit Union, who highlighted the value of the LuLu platform, saying it provides “complete transparency in its decisioning models” and allows them to be “more nimble in taking decisive action.”
Zest AI has established itself as a leader in responsible AI for financial services, backed by a robust intellectual property portfolio that includes over 50 issued and pending patents and more than 650 proprietary credit models. The company’s technology is used by nearly 300 lenders, from community banks to large enterprises. Its machine learning models are proven to deliver significantly greater accuracy than legacy credit scores, enabling lenders to achieve, on average, a 25% increase in approvals with no added risk and reduce defaults by 20% while holding approvals constant.
The strategic, customer-led investment in Zest AI marks a significant milestone for the adoption of AI in financial services. It demonstrates that AI is no longer a futuristic concept but a present-day tool delivering measurable efficiency, risk management, and growth for forward-thinking lenders. This funding positions Zest AI to further innovate and scale, helping more institutions leverage responsible AI to serve their communities better.
Founded in 2009, Zest AI is a leader in financial technology with a mission to modernize lending and strengthen the financial system. The company is transforming the $17 trillion US consumer credit market by delivering AI technology that helps lenders identify creditworthy borrowers overlooked by legacy credit methods, while leveling the playing field for financial institutions of all sizes to harness AI. With over 600 custom AI models and 50+ issued and pending patents, Zest AI is providing financial institutions with a comprehensive suite of solutions spanning underwriting, fraud detection, lending intelligence, and more to make smarter lending decisions that power growth and profitability. The company has been named on Forbes 2024 Fintech 50 List and CNBC’s 2025 World’s Top FinTech Companies list in the Enterprise FinTech category.
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