When StagePoint Federal Credit Union had a lead member of their underwriting team take an unexpected long-term medical leave of absence, they found themselves in a tricky situation. Knowing that they didn’t want to hire a backfill but needed some help to get through the period without their teammate, they were looking for a solution that could address their needs immediately. Fortunately, they had just engaged with Zest AI and its credit underwriting solution.

“One of the things that I’ve always been impressed about with Zest AI is we were able to get up and running in a very short period of time. We didn’t miss a beat, and I don’t know how we would have survived that period without Zest AI,” said Jake Anfinson, Chief Lending Officer. “Having the ability to have instant decisioning on the top and bottom end of our applications made things so much easier.”

Extending hours and relationships

Beyond the staffing support Zest AI underwriting provided, it also helped enhance StagePoint’s relationships with its customers. As a prominent auto lender to several dealer partners, the credit union wanted to identify a way to deliver loan qualifications more quickly, even during hours when the underwriting staff may not be accessible.

“We don’t staff overnight, and dealerships are open much later than we are. We have some weekend hours, but they don’t cover the entirety of what our dealers are doing on the weekends,” Anfinson explained. “We can now capture applications and approvals during the hours when we’re not available, and that has been a game changer for deepening relationships with our dealer partners.”

In quality growth mode

Through its advanced AI modeling, Zest AI underwriting also helps increase the quality of executed loans. In StagePoint’s case, the credit union had recently completed a merger and was seeking a way to ensure they were delivering quality loans and maintaining low delinquency and charge-off rates. Knowing that mergers can make this objective more trying, StagePoint turned to Zest AI to help say “yes” to as many members as possible, particularly considering new member relationships, while at the same time, executing high-quality, healthy-risk loans. With Zest AI engaged, StagePoint reported that the number of loans climbed exponentially, but delinquency and charge-off rates remained at a consistent low.

“Even though we increased lending so much throughout the course of the year, our delinquency is sitting at 35 basis points, which, with the merger, we didn’t think was going to be possible. The fact that we’ve been able to maintain that number and keep it so low over a period of time, we attribute to Zest AI.”

And with one merger under their belt, StagePoint has its sights set on continuing to expand. Zest AI was able to provide additional strategic support in the form of their generative AI (GenAI) lending intelligence platform, LuLu. With both LuLu Pulse, which provides access to financial and industry benchmarking, and LuLu Strategy, which offers internal insights powered by real-time lending data and GenAI, in place, the leadership team has access to tools to both evaluate internal opportunities and peer performance. By layering these details into their analysis, they are able to get a broader read on their market, areas where they could step up service, and those institutions that may be good fits for future acquisitions.

“We’ve always been a smaller credit union, and our CEO, staff, and Board of Directors have done a phenomenal job of growing organically over time. But you get to a certain point where you need to grow at maybe a little more rapid pace,” said Anfinson.

“Our ability in Pulse to be able to do an M&A analysis prior to starting down the road with an organization has been really beneficial for us. It can basically spit out the pros and cons of doing something, suggest if it’s a fit, and identify organizations that might be worth having a conversation with.”

An eye toward the future

From underwriting to strategy, Zest AI plays an integral role in StagePoint’s business today, and the team sees potential to expand its utilization in the future. In fact, they expect to open up LuLu Pulse and LuLu Strategy access to other members of the team and explore new ways to leverage underwriting data to optimize and further automate their consumer lending experience.

“As we grow as an organization, we want to standardize and connect our lending processes, and the easiest way for us to do that across the organization is through technology,” summed up Anfinson. “It’s beneficial for our members to know what they can expect. It’s beneficial for our dealer partners to understand which applications we’ll be comfortable with and which we won’t. And it’s beneficial for the regulators because they know there is that consistency across the board. Zest AI helps us achieve that consistency.”

The level of trust earned through the deep, consultative relationship that exists between StagePoint and Zest AI creates a new paradigm for both, elevating Zest AI from a vendor to a partner. From where Anfinson sits, that makes the products all the more valuable.

“I never wait a day for an answer when it comes to people from Zest AI. It’s one of our favorite partners to work with because of their responsiveness and willingness to go above and beyond. Zest AI really is second to none.”