Gather Federal Credit Union has selected credit underwriting platform Zest AI to reduce fraudulent activity during the loan origination and decisioning process. 

AI-driven Zest Protect can help financial institutions fight identity fraud and identify fake documents during the loan procedure, Adam Kleinman, head of strategy and client success at Zest AI, told Bank Automation News.

“Fraud has always been prevalent, but it’s getting more so for a few different reasons,” Kleinman said. “As AI evolves, fraudsters are going to take advantage of it and they’re going to get more sophisticated.” 

Fraudsters can operate on a large scale with the help of AI, and with consumers pivoting toward online banking and payments, fraudulent attempts are easier to execute, Kleinman said. 

Zest Protect reduces manual labor for bank associates by scanning documents for inconsistencies along with running background checks on applicants to reduce identity fraud attempts, Kleinman said. 

Zest AI’s deal with the $770 million Gaither Federal Credit Union was announced Aug. 7. 

JPMorgan, Grasshopper and U.S. Bank are among other financial institutions that have invested in credit decisioning platforms this year, according to BAN’s proprietary Transactions Dashboard. 

U.S. Bank selected Pagaya for AI-driven underwriting, while Grasshopper tapped AI-driven compliance provider Greenlite’s solution to improve risk profiling of small and medium-sized businesses in February.  

Dun & Bradstreet teams up with Lili  

Fintech Lili has teamed up with data and analytics company Dun & Bradstreet to help small- and medium-sized businesses build and improve their credit profile. 

Dun & Bradstreet can help small business owners access capital and build credit, Lili Chief Executive Lilac Bar David told BAN. 

“Their platform will benefit Lili’s customers by allowing them to open a Lili business checking account directly from the myD&B portal, streamlining the process and making it even easier for our customers to separate their business and personal finances,” Bar David said. “This integration also enables our customers to sync their financial data with D&B Credit Insights, which can help them take steps to build their credit file and history.” 

The integration between Lili and Dun & Bradstreet is facilitated via API, Bar David said, adding that “Lili users can access Dun & Bradstreet’s credit insights and business analytics directly within the Lili app.” 

WebBank taps BMG Money for credit underwriting 

Salt Lake City, Utah-based WebBank has tapped online loan provider BMG Money to provide loans to underserved communities, according to an Aug. 6 release. 

BMG Money and WebBank built the LoansAtWork solution to provide loans to consumers while taking their “employment history like their paychecks along with traditional credit history” into account. This increases the scope of loan originations, a WebBank spokesperson told BAN.  

The bank aims to expand its services to underserved communities that are overlooked by major financial institutions to increase its customer base, the spokesperson said. 

BMG Money’s solution will be accessible to WebBank via API, and loans can range from $500 to $10,000, the spokesperson said. 

Varo selects Marqeta for card issuing 

Digital bank Varo Bank has selected Marqeta to issue its cards for the next five years, according to an Aug. 7 release from Marqeta.  

Marqeta will aid Varo Bank in issuing digital and physical cards, which can be added to the consumers’ Apple or Google wallets, the release stated. 

“We sought an issuer partner that complements our unique position as both a technology company and a regulated financial institution,” Varo Bank CEO Colin Walsh said in the release. 

Marqeta also issues cards for payments company Block, Uber and buy now, pay later provider Afterpay. 

Visit Bank Automation News’ Transactions Dashboard, which lists the technology selected or acquired by companies in the financial services industry, with a focus on technology that enhances automation.  

Early-bird registration is now available for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.