Artificial intelligence (AI)-powered lending technology provider Zest AI has launched its latest solution, dubbed Zest Protect, in a move to support lenders with fraud detection.
The new tool will support lenders combat fraudulent activities in the loan decision-making process.
Zest Protect is designed to enhance security for credit unions, banks, and other lenders amidst the increasing application fraud environment while maintaining a positive borrower experience.
According to estimates from the Federal Trade Commission, consumer fraud losses in 2023 surpassed $10bn. Additionally, credit unions and community banks have reported a 69% increase in fraud cases affecting consumer accounts.
Zest AI CEO Mike de Vere said: “The banking industry is bracing for an onslaught of fraud as AI tools become more ubiquitous, making it easier to generate deepfakes, clone voices and otherwise defraud people and businesses.
“Now with a combination of AI-automated underwriting technology and fraud detection, we can enable lenders to safely and efficiently fund more loans.”
Zest AI’s new tool leverages its advanced machine learning technology to swiftly and accurately identify both first-party and third-party fraud. The solution also detects income discrepancies within the automated loan decisioning process.
Zest Protect offers lenders a high level of control over fraud risk management by allowing them to adjust detection thresholds according to their specific risk tolerance and automation goals, said the firm.
The access to fraud prevention data and analytics enables Zest AI to flag applications swiftly and protect against emerging threats.
Zest Protect has already been tested with a select group of Zest AI credit union clients.
In June last year, Zest AI announced an integration of its AI-driven automated credit underwriting into cloud-based loan origination system firm Sync1 Systems’ lending services.
The integration aimed at offering the credit unions partnered with Sync1 Systems access to Zest AI’s automated decisioning technology powered by more accurate and inclusive lending insights.
