Generic scoring models weren’t enough

Verity Credit Union’s slogan is “People, Planet, and Prosperity,” demonstrating their commitment to inclusive and sustainable lending. Their unique loan products, such as solar panels and bicycles, allow their community to access credit and save money on utilities. As a Community Development Financial Institution (CDFI), Verity also works with grant funds to develop even more unique lending opportunities to serve underserved communities.

However, relying on generic scoring models would mean qualified members were left out. Biased and inaccurate methods led to unreliable decisioning, and Verity needed a solution that would stop inconsistencies and bias in their tracks. In their search for AI vendors, Zest AI’s commitment to inclusive lending and ability to seamlessly integrate with their LOS made it their best bet for AI-automated underwriting.

Out with bias, in with AI

With Zest AI’s fast, inclusive technology integrated into their lending ecosystem, Verity was able to approve more protected class borrowers and those within middle-lower credit tiers. This included a raise in approvals by 271% for individuals aged 62+, 177% for African Americans, 375% for Asian Pacific Islanders, 194% for women, and 158% for Latinos.

Expanding CDFI opportunities

Because Verity can confidently lend across the credit spectrum, they have been able to qualify for even more CDFI-funded opportunities. They now offer no-minimum CDs, Sharia-compliant loans, and a microgrant program aimed at lending to historically marginalized businesses with an asset size of under $250,000.

Faster lending for member delight

In addition to inclusivity gains, Zest AI’s technology has also allowed Verity to bring their members fast, instant decisions. Verity increased their automated approvals by 100% for auto loans, 69% for personal loans, and 84% for credit cards. Members who may have been historically denied access to credit can instantly start their journey towards financial success.

Harnessing insights for sustainable growth

For every credit decision that Verity makes, they can gain deeper insights into loan performance using Zest AI’s Lending Intelligence Reporting solution. They can proactively tackle delinquencies, monitor credit migration, and adjust credit policy for an optimized lending process.

Trusted and mission aligned

Since 2009, Zest AI has been innovating and perfecting AI lending technology. A US-based CUSO and pioneer in the field supporting $5.6T in assets with over 600 active models, Zest AI aims to make best-in-class, purpose-built AI to help credit unions better serve their members.