ZestFinance, the leader in artificial intelligence (AI) software for credit, announced today its integration with MeridianLink®, the financial industry's leading multichannel loan and new account origination platform.
MeridianLink will be integrating Zest Automated Machine Learning (ZAML) credit scoring directly to its LoansPQ platform, providing MeridianLink clients the ability to access advanced machine learning for lending.
Machine learning underwriting uses thousands of credit signals to make more accurate and profitable credit decisions than traditional methods, resulting in more good loans and fewer bad ones. On average, Zest customers see a 15% increase in approval rates without increasing losses, as well as increases in booked loans due to more competitive, risk-based pricing. Machine learning models are especially good at safely increasing approval rates for traditionally underserved segments. One auto lender used Zest to increase approvals for millennials by 25%.
“Our integration with MeridianLink removes the resource and risk constraints that have made machine learning technologically challenging for lenders,” said Jay Budzik, CTO of ZestFinance. “The partnership will increase the adoption of machine learning and give more consumers access to fair credit.”
MeridianLink’s LoansPQ is a single origination platform, consolidating all channels (mobile, branch, call center, indirect, retail, and kiosk) into a single processing system for a consistent experience for originators, underwriters, processors, and funding officers. Zest anticipates that the addition of machine learning into LoansPQ will allow MeridianLink clients to achieve a positive ROI in year one by pricing their products more effectively.
“Machine learning technology is typically only available to larger financial institutions, but with this integration with Zest, our clients of any size can take advantage of it,” said Doug Glagola, VP at MeridianLink.