AI-Automated Underwriting and Fraud Detection Helps Banks and Credit Unions in U.S. to Compete with Fintechs While Expanding Lending Access

BURBANK, Calif., April 29, 2025 /PRNewswire/ — Zest AI, a leader in AI lending technology, today announced the native integration of its AI-automated underwriting and fraud detection with the Temenos Loan Origination solution. This seamless integration arms traditional financial institutions in the U.S. with sophisticated tools to increase loan approvals while maintaining robust risk management in an increasingly competitive landscape.

The collaboration delivers two significant advantages: Zest AI’s technology is able to analyze thousands of data points—far beyond traditional credit models—enabling more accurate and efficient lending decisions. Additionally, the Zest Protect system identifies fraudulent applications in real-time without disrupting the customer experience, allowing institutions to customize security levels to match their risk tolerance.

Temenos Loan Origination is a flexible application designed for both direct and indirect lending. It offers advanced automation, strong decision-making capabilities, customizable applications, and seamless integration with third-party services, making the lending process more efficient and adaptable.

“By integrating with Temenos’ industry-leading loan origination solution, we’re dramatically accelerating the lending innovation for financial institutions of all sizes,” said Mike de Vere, CEO of Zest AI. “Temenos’ robust market presence and technological infrastructure provide the foundation to help offer more banks and credit unions our AI tools. Together, we’re creating a powerful combination that enables banks and credit unions to compete with fintechs while helping expand access to credit to people that traditional models often overlook.”

On average, financial institutions implementing the Zest AI underwriting solutions can expect to automate 60-80% of lending decisions while reducing charge-offs by 20%, delivering substantial improvements in both operational efficiency and profitability. By leveraging AI-powered credit assessment and fraud detection in a single integrated platform, lenders can now offer faster decisions with enhanced security—creating a competitive advantage while better serving their communities.

“In today’s rapidly evolving financial landscape, institutions of all sizes are seeking ways to automate credit decisioning while safeguarding against increasingly complex fraud,” said Sai Rangachari, Chief Product Officer at Temenos. “The native integration with Zest AI addresses both challenges and is equipping the many credit unions and community banks across North America choosing our lending platform with AI capabilities previously available only to the largest financial institutions. This collaboration underscores our commitment to delivering innovative solutions to help our clients enhance banking experiences and better serve their communities.”

About Zest AI‍

Zest AI is a tech company on a mission to broaden access to lending. Since 2009, we’ve worked with financial institutions to use AI lending technology to better serve their borrowers. Today, we work with all types of lenders as a catalyst for economic opportunity by helping them leverage AI’s potential for good. Most recently, Zest AI was named in the Forbes Fintech 50. Learn more at Zest AI and connect on LinkedIn.

About Temenos

Temenos (SIX: TEMN) is a global leader in banking technology. Through our market-leading core banking suite and best-in-class modular solutions, we are modernizing the banking industry. Banks of all sizes utilize our adaptable technology – deployed on-premises, in the cloud, or as SaaS – to deliver next-generation services and AI-enhanced experiences that elevate banking for their customers. Our mission is to create a world where people can live their best financial lives.

For more information, please visit www.temenos.com.