Zest AI, which automates underwriting with better lending insights, has closed a growth round on $50m.
The round was co-led by existing backer Insight Partners and first-time investor CMFG Ventures. Other commitments came from CU Direct, Curql, Suncoast Credit Union, Golden1 Credit Union, Hawaii USA Federal Credit Union and NorthGate Capital.
This fresh capital will enable Zest AI to expand access to AI-automated credit underwriting for all lenders. By doing this, Zest AI hopes to fuel more accurate and consistent underwriting decisions, which will create a level playing field for borrowers and a more inclusive economy, it said.
Zest AI is on track to nearly double its customer base in 2022, having tripled it in 2021. Its clients include Citibank, First National Bank of Omaha, Truist, Golden 1 Credit Union, Suncoast Credit Union, and Hawaii USA Federal Credit Union. The company has built over 250 AI-underwriting models.
Founded in 2009, helps automate underwriting by leverages AI to identify, predict and remove inherent biases and render more consistent and equitable lending decisions.
Insight Partners managing director Lonne Jaffe said, “Zest AI’s accelerating growth is a testament to the power and value of its advanced explainable AI technology for loan underwriting.
“By using more features, or ingredients, in its prediction system, Zest’s customers can issue more loans, take less risk, and be more inclusive — all while adapting more quickly to changing macroeconomic conditions and explaining loan decisions more effectively. We look forward to doubling down on our partnership with Zest as they rapidly Scale Up.”
Zest AI previously raised $15m in funding in 2020, which was supplied by Insight Partners.
In other lending news, Lendbuzz recently raised a $150m credit facility from JP Morgan. The FinTech company is an AI-powered auto finance platform that helps consumers get fair access to credit why buying a car.
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