Zest AI secures growth capital from Fintech investors, strategic partners and customers to advance the next generation of AI-automated insurance
Zest AI secures growth capital from Fintech investors, strategic partners and customers to advance the next generation of AI-automated insurance
Zest AI, the leader in underwriting automation with more accurate and inclusive lending insights powered by AI, today announced that the company has raised over $50 million in a new growth round. 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 US,” said 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 Omaha, Truist, 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 to the company’s commitment to advancing AI in lending for the benefit of all credit union members from coast to coast.” said Darlene Johnson, EVP 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.
