Commonwealth Credit Union is using Zest AI’s underwriting solution to speed up customer service and improve risk modeling and accuracy of underwriting. 

“Seventy percent to 83% of all our loan underwritings are automated now,” Chief Growth Officer Jaynel Christensen told Bank Automation News.

The $2 billion credit union started working with Zest AI in 2021 and has since: 

• Increased indirect auto lending to $209 million in 2023 from $95 million in 2019; 

• Reduced the time for loan origination decisions to 2 to 4 seconds through AI, down from 8 to 10 minutes through manual underwriting;  

• Started analyzing more than 190 factors before making a credit decision, rather than 15 to 20 factors when analysis was manual; and 

• “Nearly doubled” origination volume since 2021, reaching $324 million over 18,000, Christensen said. 

Implementing Zest AI

It took Zest AI less than 90 days to bring Frankfort, Ky.-based Commonwealth Credit Union online on its platform, Aaron Long, head of client development at ZestAI, told BAN, adding that the platforms are connected via APIs. 

Some of the applications require almost no human intervention, Long said, adding that “the efficiency gain allows [financial institutions] to make instant decisions and get a response back to the member instantly.” 

Many financial institutions are looking to deploy AI in underwriting to improve risk modeling, gain efficiency and expand financial inclusion, Long said, adding that credit unions and smaller banks are more likely to use the technology from a vendor like Zest AI. 

Nearly 215 financial institutions use Zest AI, including $25 billion First Hawaii Bank, $14 billion VyStar Credit Union and $817 million Verity Credit Union, according to the company. 

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