Zest AI, a leader in AI lending technology, announced a $200 million growth investment from global software investor Insight Partners to support the company’s next phase of transformation. The growth capital will enable Zest AI to double down on its current product portfolio, continuing to advance fraud protection and generative AI – all to build the future of lending through AI.
Zest AI transforms credit underwriting by using AI to provide more sophisticated and accurate scoring methods while also making the technology easy to use and explainable for all financial institutions. Unlike other credit scoring methods, Zest AI’s technology analyzes thousands of data variables—far surpassing traditional credit models that rely on 15–20 variables. With over 50 patents, Zest AI has developed and deployed over 500 active proprietary AI consumer credit models that help lenders make smarter lending decisions. The company’s AI-automated underwriting technology enhances the customer experience by instantly automating up to 80% of loan applications to drive operational efficiency while reducing chargeoffs by 20%, helping lenders responsibly expand credit access to more creditworthy people who desperately need it.
“Today, financial institutions are missing out on a nearly $3 trillion opportunity by sticking with antiquated traditional scoring systems. Zest AI’s technology is strengthening the financial system by leveraging more data and AI to deliver a higher fidelity view of consumer credit risk. Our customers are able to grow their lending businesses more than 25% while helping every American get a shot at equitable credit. This ultimately strengthens our customers’ balance sheets, while helping every day Americans achieve their dreams,” said Mike de Vere, Founder and CEO of Zest AI. “With advancements in AI, macroeconomic tailwinds, and the support of our investors, Zest AI is well capitalized and in prime position to accelerate our product roadmap and identify strategic M&A opportunities that bolster the pursuit of our mission.”
“Zest has been cultivating sophisticated AI and ML technology applied to credit underwriting for over a decade. The product is loved by customers, as demonstrated in best-in-class vertical market SaaS retention, because it is both powerful but approachable for financial institutions,” said Jon Rosenbaum, Managing Director at Insight Partners and Zest AI board member. “This marks our third and largest investment in the company since 2020, seeing the Zest team deliver years of compounding growth and delighted customers. We’re thrilled for the next phase of helping lenders achieve healthy growth while making access to credit more equitable for consumers. This includes doubling down on core credit underwriting while also accelerating new products in fraud and AI workflow which are already in the hands of customers.”
Since Insight Partners made their first investment in Zest AI in 2020, the company has doubled its customer count every year and has had an average compounding annual growth rate of over 50%. Today, Zest AI customers represent 110 million people and $5.5 trillion in assets under management.
As the company focuses on its next phase of expansion, Zest AI’s M&A strategy and product roadmap center around four pillars that reinforce its position as a comprehensive lending AI technology: loan underwriting solutions, fraud protection, marketing and data intelligence capabilities. The company has had strong momentum recently announcing Zest Protect, which leverages AI models with hundreds of features, and the industry’s first generative AI lending intelligence companion called LuLu that enables financial institutions to analyze performance benchmarks and extract insights using natural language prompts. These strategic priorities align with Zest AI’s commitment to building a robust lending ecosystem that helps lenders grow their customer relationships, manage risk effectively, and combat increasingly sophisticated fraud attempts.
Lazard, Covington & Burling, PwC, and Willkie Farr & Gallagher LLP advised on the transaction.
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