#United States #Fraud Detection #Burbank #Zest AI #MeridianLink

Zest AI Enhances Fraud Prevention for Financial Institutions

In a significant development in the lending technology sector, Zest AI, renowned for its expertise in artificial intelligence, has announced a strategic partnership with MeridianLink, a frontrunner in modern software solutions for financial institutions. This collaboration introduces Zest Protect, a sophisticated and configurable tool designed for fraud detection, which aims to revolutionize the way financial institutions manage and prevent fraud.

Tackling Fraud in the Financial Sector

According to estimates from the Federal Trade Commission, consumer fraud losses surpassed $10 billion in 2023, with credit unions and community banks experiencing a startling 69% increase in reported fraud cases. This escalation underscores the urgency for effective fraud prevention solutions, particularly in today's ever-evolving digital landscape.

The Zest Protect tool is engineered to offer comprehensive layers of protection against various threats, including identity theft, first and third-party fraud, and instances of misreported income. Integration with existing fraud review processes ensures that MeridianLink's users can seamlessly enhance their fraud detection capabilities while maintaining efficient application processing workflows.

Benefits of the Partnership

MeridianLink services over 2,000 customers, allowing them to harness the power of Zest’s advanced fraud detection technology. This strategic partnership is poised to not only streamline the application process for borrowers but also significantly reduce instances of fraud. The customizable nature of Zest Protect enables financial institutions to adjust risk thresholds according to specific portfolio needs and fraud types, ensuring a high level of personalization in fraud detection strategies.

Megan Pulliam, Senior Vice President at MeridianLink, expresses confidence in the partnership, stating that Zest AI has consistently demonstrated its value to their client base. The integration of Zest Protect will simplify automation workflows, while providing coverage across all application processes, thus addressing the growing concern of fraud in a holistic manner.

A Comprehensive Approach to Modern Fraud Challenges

Fraud remains a crucial challenge for lenders, magnified by sophisticated tactics employed by fraudsters. José Valentin, Head of Strategic Partnerships at Zest AI, highlights the monumental costs associated with fraud, noting that each dollar lost results in four times that amount spent in loss recovery. In response, the collaboration with MeridianLink extends Zest Protect's services without charging on a per-application basis, allowing for widespread evaluation of all applications.

This approach is designed to enhance efficiency and decision-making processes for lenders and positions Zest AI as a leader in combating complex fraud challenges, including those emerging from the use of artificial intelligence by fraudsters.

Joel Swanson, Chief Lending Officer at VyStar Credit Union, applauds Zest AI’s innovative methods, stating that their technology provides reliable underwriting and fraud detection, significantly strengthening institutional defenses against fraud.

Conclusion

Zest AI’s partnership with MeridianLink marks a pivotal moment in the financial technology industry, focusing on bolstering fraud prevention measures through state-of-the-art AI solutions. As the financial landscape continues to evolve, such collaborations will be instrumental in safeguarding institutions and enhancing customer trust. For more information about the innovative solutions offered by Zest AI, visit their official website or follow their updates on LinkedIn.