AI lending technology firm Zest AI has announced a $200 million growth investment from Insight Partners, a global software investor.
The significant funding is set to propel the company into its next phase of innovation, with a focus on advancing fraud protection and generative AI capabilities as part of its broader mission to transform the lending industry.
Zest AI has made its mark by revolutionising credit underwriting through artificial intelligence. Unlike traditional credit scoring models that rely on a limited set of variables, Zest AI’s technology analyses thousands of data points to provide more accurate and nuanced credit assessments.
Its approach not only enhances decision-making but also ensures that the technology is user-friendly for financial institutions. With over 50 patents and over 500 active AI-driven credit models in deployment, the company automates up to 80% of loan applications, improving efficiency and reducing charge-offs by 20%, helping lenders responsibly expand credit access to underserved yet creditworthy populations.
“Today, financial institutions are missing out on a nearly $3 trillion opportunity by sticking with antiquated traditional scoring systems. Zest AI’s technology is strengthening the financial system by leveraging more data and AI to deliver a higher fidelity view of consumer credit risk. Our customers are able to grow their lending businesses more than 25% while helping every American get a shot at equitable credit. This ultimately strengthens our customers’ balance sheets, while helping every day Americans achieve their dreams,” said Mike de Vere, Founder and CEO of Zest AI.
Since Insight Partners first invested in Zest AI in 2020, the company has experienced remarkable growth, doubling its customer base annually and achieving a compound annual growth rate exceeding 50%. Its solutions now serve financial institutions managing $5.5 trillion in assets and representing 110 million individuals.
Zest AI’s product roadmap encompasses four strategic areas: loan underwriting, fraud protection, marketing intelligence, and data analytics. Recent innovations include Zest Protect, an AI-powered fraud prevention tool, and LuLu, a generative AI lending intelligence companion designed to provide actionable insights through natural language prompts.
By integrating cutting-edge AI technologies into lending, Zest AI aims to build a robust ecosystem that empowers lenders to strengthen customer relationships, combat fraud, and enhance risk management.