500% increase in pre-approvals with Zest AI

When Educational Federal Credit Union (EdFed), a credit union with $1.8 billion in assets based in Miami, wanted to ramp up lending automation, they knew they wanted to take a measured approach. They wanted a provider with an existing MeridianLink integration, but they were also seeking one who would be a true partner from day one. 

Zest AI fit that bill precisely.  

“We use a crawl, walk, run approach in our organization, and Zest AI listened to that and worked with us to create models that aligned with our strategy. We really appreciated the collaboration and understanding, and it has developed into a very good, two-way, communicative relationship,” said Michael Aubrey, Senior Vice President of Lending. 

As EdFed began integrating Zest AI models into its loan process, they did so methodically, slowly implementing changes to minimize organizational risk. 

“We wanted to take an incremental approach to phasing in new automation," shared Tim Scharnagl, Vice President of Consumer Lending. “We didn’t want to jump from 18% automation to 70% or 80% automation overnight because of the risk that could be involved with that.”

To support EdFed’s goals, Zest AI reviewed and analyzed the credit union’s historical data on loan approvals, denials, and results, including charge-offs and delinquencies. From there, the Zest AI team collaborated with EdFed to build custom models that both supported the credit union’s automation objectives and kept in mind their risk tolerance and overall strategic goals. In doing so, the team set a firm foundation in place, one that EdFed has been steadily building upon over time through regular discussions with the Zest AI team.

“We have had a collaborative partnership with Zest AI that has enabled us to continue making adjustments along the way as we feel comfortable, as we see the results,” shared Scharnagl. “We have been able to make further improvements to the automation.”

Demonstrating success

These automation successes tied directly to financial gains their first summer after launching with Zest AI. As a credit union serving the educational community, EdFed annually runs a bridge loan campaign designed for school employees who may need financial assistance between paychecks over the summer months. It has always been a very impactful campaign, but with Zest AI, they achieved exponential growth in new loan balances. 

Having found comfort in their automation levels, EdFed decided to integrate Zest AI into its pre-screen approval models, which had historically only utilized credit bureau data. The introduction of Zest AI yielded profound results: Pre-screen approvals grew from 500% year-over-year. That wider pool of potential candidates led to an additional $6.3 million in loan volume. 

“This growth was thanks to Zest AI and the integration with our credit bureau for that pre-screen. It really helped to drive the lending to get the funds into the hands of our members who needed them,” said Scharnagl. 

In addition to this campaign, with Zest AI, EdFed has seen automated decisioning jump from 18% to 57%. The team also has been able to book more applications overall, when comparing 2024 to 2025, equating to $27.5 million more in loan volume—and they are on a similar trajectory for 2026. 

“This growth is all without adding to our headcount,” said Aubrey. “Without Zest AI, to do these volumes, we would have needed an additional four or five underwriters. So, in that respect, Zest AI is not only paying for itself, it is actually netting out positive.” 

Beyond underwriting, EdFed has also begun leveraging LuLu, Zest AI’s lending intelligence companion, to help navigate today’s economy and identify untapped areas of opportunity. Case in point: An underwriter on the EdFed team was evaluating an auto financing fintech in their portfolio to determine ways to safely increase loan approvals. Using LuLu to run an analysis, the underwriter uncovered that of the automated declines, about half would have been approved in traditional underwriting because they were right on the cusp of being an instant approval. The team was then able to collaborate with Zest AI to build a “buffer zone” for auto loans where a certain score range triggers a manual review. EdFed has gained more business by scrutinizing those details more closely. 

“LuLu is definitely something that we want to continue to explore and utilize more,” explained Scharnagl. “It is very quick and easy to use, and it delivers the data you need to make informed decisions.”

Expanding into the future

EdFed plans to continue working with Zest AI to identify other areas of opportunity. Through regular standing meetings and quarterly reviews, Zest AI and EdFed remain in constant communication, and the EdFed team expects to continue evolving their underwriting models to enhance efficiencies and grow loan volumes. 

“We are steadily increasing, and when we do the quarterly reviews, we adjust and we continue to grow and push the envelope,” noted Aubrey. “We do them in conjunction with our Compliance department. We are all on the same page. So, it is controlled strategic growth.” 

As the EdFed team looks to the future, they do so with plans to deepen their partnership with Zest AI. The collaboration will continue to yield results that support the credit union, its growth mindset, and its member needs. 

“This collaboration has been a breath of fresh air for both of us,” said Aubrey. “We work together to really make this engine run, and our success is proof that it's happening. We value this relationship and the collaboration.”

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