Zest AI has integrated its AI-driven credit decisioning and fraud detection systems with the Temenos Loan Origination system.

This collaboration aims to provide traditional financial organisations in the US with advanced tools to enhance loan approval rates while ensuring effective risk management.

In a statement, Zest AI said its technology can evaluate “thousands” of data points, surpassing the capabilities of conventional credit models, which leads to improved accuracy and efficiency in lending decisions.

Furthermore, the Zest Protect system is designed to detect fraudulent applications in real-time, ensuring that the customer experience remains uninterrupted.

This feature enables financial institutions to tailor their security measures according to their specific risk tolerance.

Temenos chief product officer Sai Rangachari said: “The native integration with Zest AI addresses both challenges and is equipping the many credit unions and community banks across North America choosing our lending platform with AI capabilities previously available only to the largest financial institutions.”

The Temenos Loan Origination solution is adaptable for both direct and indirect lending, offering “advanced automation” and the ability to integrate seamlessly with third-party services.

Financial institutions that adopt Zest AI’s underwriting solutions can automate between 60% to 80% of their lending decisions and expect a reduction in charge-offs by 20%, the firm claimed.

This integration is expected to enhance operational efficiency and profitability for lenders, allowing them to provide quicker decisions with improved security measures.

Zest AI CEO Mike de Vere said: “Temenos’ robust market presence and technological infrastructure provide the foundation to help offer more banks and credit unions our AI tools.

“Together, we’re creating a powerful combination that enables banks and credit unions to compete with fintechs while helping expand access to credit to people that traditional models often overlook.”

In December 2024, Zest AI secured $200m from Insight Partners to enhance its product portfolio, emphasising fraud protection and generative AI in lending.