The funding will enhance Zest AI’s product portfolio, focusing on fraud protection and generative AI for lending. Credit: Song_about_summer/Shutterstock.

US-based lending technology provider Zest AI has garnered a $200m growth investment from Insight Partners.

This capital injection is set to bolster the company’s product portfolio, focusing on fraud protection and generative AI to enhance the future of lending.

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The investment will support Zest AI’s mission to transform credit underwriting by offering more advance and accurate scoring methods through AI.

Its technology analyses thousands of data points, far beyond the traditional models that use only 15-20 variables.

Insight Partners managing director and Zest AI board member Jon Rosenbaum said: “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.”

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Zest AI’s strategy for expansion includes a focus on four key pillars – loan underwriting solutions, fraud protection, marketing, and data intelligence capabilities.

The company has recently launched Zest Protect and LuLu, a generative AI lending intelligence companion, marking significant strides in its product offerings.

Since Insight Partners’ initial investment in 2020, Zest AI has seen its customer base double annually, with a compounding annual growth rate exceeding 50%.

With a portfolio of over 50 patents, Zest AI has developed and deployed more than 500 proprietary AI consumer credit models, enhancing lenders’ decision-making processes.

Currently, the company’s clientele represents 110 million individuals and manages assets worth $5.5bn.

Zest AI founder and CEO Mike de Vere said: “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.”

In 2021, Zest AI raised $18m in a round led by VyStar Credit Union and First National Bank of Omaha, with support from existing investor Northgate Capital.