Zest AI secures growth capital from Fintech investors, strategic partners and customers to advance the next generation of AI-automated insurance
Led by Insight Partners and CMFG Ventures, this investment from new and existing investors will support Zest AI’s next phase of growth in the fast-moving lending industry and indicates confidence in the company’s capacity for expansion given any economic conditions
LOS ANGELES, 2 November 2022 /PRNewswire/ — Zest AI, the leader in underwriting automation with more accurate and inclusive lending insights powered by AI, today announced that the company has raised 50 million dollars in a new round of growth. The round was led by existing global software investor Insight Partners and new investor CMFG Ventures, with participation from CU Direct, Curql, Suncoast Credit Union, Golden1 Credit Union, Hawaii USA Federal Credit Union and NorthGate Capital.
“We are working to build a better future for the financial services ecosystem where insurance is fast, fair and frictionless across the United States,” so Mike de Vere, CEO of Zest AI. “Our work is to help our customers efficiently and safely approve more loans – and create financial opportunity for all consumers.”
Zest AI plans to use the new funding to rapidly expand access to AI automated credit underwriting for all lenders. By expanding access to this technology, Zest AI will provide more accurate and consistent underwriting decisions – leveling the playing field for all borrowers and promoting a more inclusive economy.
“Zest AI’s accelerating growth is a testament to the power and value of its advanced explainable AI technology for loan underwriting,” said Lonne Jaffe, CEO of Insight Partners. “By using more features, or ingredients, in its prediction system, Zest’s clients can issue more loans, take less risk and be more inclusive – all while adapting more quickly to changing macroeconomic conditions and explaining lending decisions more effectively. We look forward to to double down on our partnership with Zest as they rapidly scale up.”
“Our credit union partners have found Zest AI’s technology to be a great way to automate their underwriting. Zest not only allows credit unions to make better lending decisions, but also expands access to more affordable credit across credit tiers,” said Mike Kraus, principal at CMFG Ventures. “The timing for credit unions to adopt more inclusive credit guarantees couldn’t be better, and we’re excited to help demonstrate Zest’s value to the industry.”
The company is on target to nearly double its customer base by 2022 after tripling it in 2021. To date, the company has built over 250 AI underwriting models. A number of the most innovative lending organizations, such as Citibank, First National Bank of OmahaTruist, Golden 1 Credit Union, Suncoast Credit Union and Hawaii USA Federal Credit Union have partnered with Zest AI to modernize their lending operations.
“Zest AI is transforming the financial services landscape – especially for credit unions and their members. The future of insurance is automation and the ability to deliver better financial products and superior customer service. Investing in Zest means investing in our members’ financial well. Our support will fuel the company’s commitment to advancing AI in lending for the benefit of all credit union members from coast to coast.” so Darlene JohnsonEVP and Chief Growth Officer at Suncoast Credit Union.
As more financial institutions adopt artificial intelligence tools to make better credit decisions, Zest AI is well positioned to transform the industry. Zest’s technology uses artificial intelligence to identify, predict and remove inherent biases and provide more consistent and fair lending decisions. The technology allows customers to approve more borrowers without taking on more risk, resulting in a 25 percent increase in approvals and full automation.
About Zest AI
Zest AI is a technology company that aims to make fair and transparent credit available to everyone. Since 2009, we have been working with financial institutions to offer AI-powered credit solutions to their borrowers. Today, we work with all types of lenders – but especially credit unions – to democratize underwriting automation and fair credit decisions. Learn more at Zest.ai and connect with us on Twitter and LinkedIn.
About Insight Partners
Insight Partners is a global software investor that partners with high-growth technology, software and Internet startups and ScaleUp companies that are driving transformational change in their industries. Per 30 June 2022has the company over 80 billion dollars in regulatory assets under management. Insight Partners has invested in more than 700 companies worldwide and has seen over 55 portfolio companies achieve an IPO. With headquarters in New York CityInsight has offices in London, Tel Avivand Palo Alto. Insight’s mission is to find, fund and work successfully with visionary leaders, providing them with right-sized, hands-on, hands-on software expertise along their growth journey, from their initial investment to IPO. For more information about Insight and all of its investments, visit insightpartners.com or follow us on Twitter @insightpartners.
About CMFG Ventures
CMFG Ventures is the venture capital arm of CUNA Mutual Group, a trusted credit union partner since 1935. More than 95 percent of U.S. credit unions rely on CUNA Mutual Group for a broad range of financial products and services, each developed with one goal in mind: To create financial security for hard working Americans. CMFG Ventures has invested in over 50 fintechs to help financial institutions grow and provide a brighter financial future for all. Visit the CMFG Ventures website for more information. To learn more about the Discovery Fund, which supports diversity in fintech, visit here.
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SOURCE Zest AI
