LOS ANGELES -

ZestFinance, a provider of credit software fueled by artificial intelligence (AI), announced its integration with MeridianLink, a multichannel loan and new account origination platform.

According to a news release distributed last week, 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.

The companies explained machine learning underwriting uses thousands of credit signals to make more accurate and profitable credit decisions than traditional methods, resulting in more good contracts 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.

Officials added machine learning models are especially good at safely increasing approval rates for traditionally underserved segments. One auto-finance company 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, chief technology officer 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, vice president at MeridianLink.