The launch of CU Lending Collective signals a pivotal moment for the fintech ecosystem as smaller financial institutions seek practical ways to compete using artificial intelligence driven lending tools.
Commonwealth Credit Union and Zest AI have announced the formation of CU Lending Collective, a credit union service organization created to help small credit unions adopt and deploy AI powered lending technology. The initiative is designed to give community based institutions access to enterprise grade artificial intelligence without the high costs and operational complexity that often limit adoption.
The CU Lending Collective is structured as a first of its kind model focused specifically on the needs of smaller credit unions. It aims to provide a compliant and repeatable pathway for modernizing underwriting operations while addressing regulatory expectations and limited internal resources. By combining operational support with proprietary machine learning models, the platform is positioned as a blueprint for how community lenders can responsibly expand access to credit.
Small credit unions face mounting pressure to approve more members, compete with national lenders, and maintain strong compliance standards. Through the CU Lending Collective, participating institutions will gain access to advanced credit risk assessment tools designed to improve approval rates while safeguarding portfolio performance.
“This partnership represents a significant opportunity to level the playing field for small credit unions that want to innovate but lack the scale of larger institutions not just through advanced AI, but through the operational expertise required to put it to work,” said Jaynel Christensen, Executive Vice President of Commonwealth Credit Union. “Since partnering with Zest AI, we’ve delivered loan growth that outpaced industry norms exceeding 14% in 2025 while maintaining strong delinquency and charge-off performance. We’re saying yes to more members and responsibly expanding our credit reach. By establishing the CU Lending Collective, we can share Commonwealth’s real-world lending experience and proven results, powered by Zest’s technology, with small credit unions, helping them achieve similar outcomes in their own communities.”
Under the partnership, Zest AI will develop a custom AI powered scoring model tailored for small credit unions. The model is designed to assess credit risk more accurately than traditional credit scores and estimate the likelihood of default across products such as auto loans, personal loans, and credit cards. The program also incorporates fair lending safeguards, model risk management documentation, and mapped reason codes to enhance transparency and explainability. Zest AI will oversee deployment, secure hosting, and ongoing monitoring, while the CU Lending Collective provides hands on operational guidance to support adoption.
“Small credit unions are the backbone of community lending, yet they are often locked out of the most advanced financial technology,” said Mike de Vere, CEO at Zest AI. “Adopting AI-powered lending is essential to help small institutions scale responsibly and serve more members. This partnership with Commonwealth Credit Union allows us to deliver proven AI technology already used by hundreds of credit unions in a way that is practical, affordable, and purpose-built for small credit unions.”
As regulatory scrutiny intensifies and competition from national lenders grows, CU Lending Collective positions AI powered lending as an attainable strategy for community institutions seeking sustainable growth and broader financial inclusion.
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