Zest AI secures $200M growth funding from Insight Partners to advance AI-driven lending solutions

Zest AI, a fintech startup revolutionizing lending with AI-driven solutions, announced today it has raised a $200 million growth investment from Insight Partners. This funding will support Zest AI’s continued efforts to improve underwriting, fraud protection, and generative AI capabilities, with a focus on shaping the future of lending through innovative technology.

Zest AI uses artificial intelligence to modernize credit underwriting, offering more detailed and accurate scoring methods compared to traditional credit models. While conventional methods typically evaluate around 15–20 variables, Zest AI’s technology analyzes thousands of data points, providing a deeper and more nuanced assessment of consumer credit risk.

The company’s approach makes AI solutions more accessible and explainable for financial institutions of all sizes, leveling the playing field in an industry often dominated by major players.

Founded in 2009, Zest AI is transforming credit underwriting by analyzing thousands of data variables, offering more precise and comprehensive credit scoring compared to traditional models that rely on fewer factors. Over the past four years, its AI models have been used to assess more than 39 million loan applications, facilitating $250 billion in approved loans. The company has also seen significant growth, with its customer base expanding by over 50% annually during the same period.

Zest AI’s proprietary technology includes over 500 active AI credit models and 50 patents. These models automate up to 80% of loan applications, improving efficiency while reducing charge-offs by 20%. The result? Lenders can make smarter decisions while expanding credit access for consumers.

A $3 Trillion Opportunity

According to Mike de Vere, Founder and CEO of Zest AI, outdated credit scoring systems leave financial institutions missing out on a $3 trillion opportunity. He emphasized how the company’s technology enables lenders to grow their businesses while providing more equitable access to credit for consumers.

“Zest AI’s advancements are helping lenders expand their reach responsibly while strengthening their financial standing,” said de Vere. “With strong investor backing, we’re well-positioned to accelerate product development and explore strategic acquisitions to further our mission.”

Backing from Insight Partners

Insight Partners, a global software investor, has been a consistent supporter of Zest AI, marking this their third investment since 2020. Jon Rosenbaum, Managing Director at Insight Partners and Zest AI board member, highlighted the company’s success in delivering consistent growth and high customer satisfaction.

“Zest AI has built technology that financial institutions trust and rely on,” said Rosenbaum. “This investment will help the company expand its core underwriting capabilities and continue delivering new products in fraud protection and AI-driven workflows.”

Strategic Focus on Innovation

Zest AI has outlined four key areas for its next phase of growth: loan underwriting solutions, fraud protection, marketing, and data intelligence. Recent product launches include Zest Protect, an AI-powered fraud detection tool, and LuLu, a generative AI assistant that provides financial institutions with insights through natural language prompts.

With these tools and a clear focus on innovation, Zest AI aims to create a stronger lending ecosystem that fosters customer growth, manages risk, and combats sophisticated fraud.

Expanding Impact

Today, Zest AI serves institutions managing $5.5 trillion in assets and reaching over 110 million people. As the company continues to scale, its commitment to equitable lending and cutting-edge technology positions it as a key player in reshaping the financial landscape.

By blending advanced AI tools with a mission to make lending fairer and more efficient, Zest AI is setting a new standard for the industry.

Zest AI CEO