The Burbank firm will use the money to accelerate adoption of its Model Management System for creating and deploying artificial intelligence-based credit underwriting models.
Zest AI develops software that’s used to determine the credit worthiness of loan applicants. It sells its software to banks, large credit unions, auto loan providers and large mortgage companies. The company was founded in 2009 by Douglas Merrill, former chief innovation officer at Google.
Deven Parekh, managing director at Insight Partners, said it is not every day you get to use proven technology to impact the economic opportunity gap.
“The Zest team has deep domain expertise in both lending and explainable AI and this has led to strong product-market fit; however, what has excited us is the opportunity to tilt the lending landscape toward equity and inclusion,” Parekh said in a statement.
In addition to Zest AI, Insight also has invested in FloQast, an accounting software developer in Van Nuys.
Insight managing director Lonne Jaffe will join the Zest board with Jon Rosenbaum, a vice president, joining as a board observer.