Generic scoring models weren’t enough

This credit union has a strong commitment to fair and sustainable lending. Its unique loan products—such as financing for solar panels and bicycles—help community members access credit while reducing long-term utility costs. As a mission-focused, grant-supported lender, it also leverages grant funding to expand innovative lending programs designed to serve underserved communities.

However, relying on generic scoring models meant that many qualified applicants were being overlooked. Biased and inaccurate methods led to inconsistent decisioning, creating a need for a more reliable and equitable approach. In evaluating AI vendors, they selected Zest AI for its commitment to fair lending and its ability to seamlessly integrate with existing loan origination systems (LOS), enabling AI-driven underwriting.

Out with bias, in with AI

With Zest AI’s fast, fair technology integrated into its lending ecosystem, the credit union was able to approve more borrowers from protected classes and those in middle-to-lower credit tiers. This included significant increases in approvals across key segments: 271% for individuals aged 62+, 177% for Black borrowers, 375% for Asian Pacific Islanders, 194% for women, and 158% for Hispanic borrowers.

Expanding CDFI opportunities

With greater confidence in lending across the credit spectrum, they unlocked additional grant- and program-funded opportunities. It expanded its offerings to include no-minimum CDs, Sharia-compliant loans, and microgrant programs aimed at supporting historically marginalized businesses with assets under $250,000.

Faster lending for member delight

Beyond fairness gains, Zest AI’s technology also enabled faster decisioning. Automated approvals increased by 100% for auto loans, 69% for personal loans, and 84% for credit cards. Applicants who may have previously been denied can now receive instant decisions and begin building their financial future more quickly.

Harnessing insights for sustainable growth

With every credit decision, the credit union gained deeper visibility into loan performance through Zest AI’s Lending Intelligence Reporting solution. This allows for proactive delinquency management, monitoring of credit migration, and ongoing optimization of credit policies.

Trusted and mission aligned

Since 2009, Zest AI has been advancing AI-driven lending. As a U.S.-based CUSO supporting $5.6T in assets with over 600 active models, Zest AI delivers purpose-built technology designed to help financial institutions expand access to credit while managing risk effectively.