Zest AI, founded in 2009 as ZestFinance by former Google CIO Douglas Merrill and credit-risk executive Shawn Budde before renaming to Zest AI in 2019, builds AI credit-underwriting models for banks, credit unions, and lenders, aiming for more accurate risk scoring than traditional credit models while keeping decisions explainable to regulators.
Nearly 300 lenders now run Zest AI's models, representing 110 million consumers and $5.5 trillion in assets, including Freddie Mac, Discover Financial, and Suncoast Credit Union, with the company reporting its automation handles up to 80% of loan applications without manual underwriting while reducing chargeoffs by roughly 20%. The company raised a $200 million growth investment from Insight Partners in December 2024, followed by an oversubscribed, customer-led round in November 2025 backed by several of its own credit union customers alongside Citi Ventures.
Enterprise pricing is quote-based around loan volume and requires a sales conversation with the lender's specific underwriting needs. For a bank, credit union, or lender that wants explainable AI credit scoring that automates routine loan decisions while satisfying regulatory scrutiny, rather than a black-box model that can't be justified to examiners, Zest AI's underwriting focus addresses that directly.
