Zest AI, a leading provider of AI-powered lending solutions, has secured a new round of strategic funding led by its own customers.
The investors include SchoolsFirst Federal Credit Union, Members 1st Federal Credit Union, ORNL Federal Credit Union, Truliant Federal Credit Union, and Citi Ventures, the investing arm of Citi.
The oversubscribed financing round marks a notable milestone for the California-based FinTech company, which helps lenders modernise their credit underwriting with artificial intelligence. The round also represents a sharp increase in valuation compared to its previous growth round, signalling growing institutional confidence in Zest AI’s technology and vision.
Founded in 2009, Zest AI develops advanced credit scoring and lending automation tools to help financial institutions make faster, fairer, and more accurate lending decisions. Its products, including the Generative AI-powered lending intelligence platform LuLu and Zest Protect for fraud detection, are used by nearly 300 lenders worldwide. The firm’s technology leverages over 650 proprietary credit models and 50 patents to increase approval rates by 25% and reduce defaults by 20%, without adding risk.
The company plans to use the new capital to accelerate automation across the entire borrower journey and scale adoption of LuLu.
SchoolsFirst Federal Credit Union CEO Bill Cheney said, “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.
“When we signed on a year ago, we had an ambitious vision, and the results have exceeded our expectations. This is a partnership that’s delivering real value today and will continue to drive innovation for our members well into the future.”
Zest AI CEO Mike de Vere said, “Having our customers become investors is the ultimate validation of our technology and vision.
“This round reflects both financial and operational confidence from institutions that use our AI solutions every day to transform their businesses and deliver greater value to their customers and members. The convergence of regulatory support for AI, intensifying competition, and the need for efficiency is fueling strong demand for our solutions. This investment enables us to accelerate innovation and scale adoption, helping more financial institutions leverage AI to deliver greater impact for the communities they serve.”
Read the daily FinTech news
Copyright © 2025 FinTech Global
