#USA #Fraud Detection #Burbank #Zest AI #Sync1 Systems

Zest AI Enhances Fraud Protection for Credit Unions

In a significant move for the financial technology sector, Zest AI, a frontrunner in AI-powered lending technology, has expanded its collaboration with Sync1 Systems, a notable provider of cloud-based loan origination systems. This partnership aims to deliver cutting-edge fraud protection tools that cater specifically to credit unions, who are increasingly grappling with rising instances of fraud.

On January 30, 2025, Zest AI announced that its solution, Zest Protect, would now be integrated into Sync1 Systems' offerings. This enhancement allows credit unions using Sync1’s systems to utilize an advanced, customizable fraud detection tool that promises faster and more precise identification of various fraud types during the loan application stage. This development follows the successful integration of Zest AI’s automated underwriting capabilities into Sync1’s platform in June 2023.

Steve Maloney, CEO of Sync1 Systems, emphasized the necessity for sophisticated fraud detection methods that seamlessly integrate with existing lending technologies. He stated, “By integrating Zest Protect into our platform, we're giving our partners enterprise-grade fraud detection that fits simply, and easily into their existing workflows and can be tailored to their specific needs and communities.” This level of customization is crucial for credit unions that aim to meet the unique needs of their members effectively.

The urgency for such innovations is underscored by alarming statistics from the Federal Trade Commission, which revealed that consumer fraud losses surpassed $10 billion in 2023. The data indicates a staggering 69% increase in fraud cases reported by credit unions and community banks, with many institutions claiming direct fraud losses exceeding $500,000.

Zest Protect is designed to meet these challenges head-on by embedding sophisticated fraud detection capabilities directly into the credit decision workflows. This integration not only enhances automated approval confidence but also provides further insights that can help in identifying suspicious applications. Credit unions can customize fraud detection settings, allowing them to establish portfolio-specific regulations and safeguard against a variety of fraud types, including synthetic identities and inaccurately reported income – all within their current loan origination systems.

By doing so, this partnership allows credit unions using Sync1 Systems to conduct their decision-making processes with heightened confidence, offering borrowers a modern and swift application experience while significantly reducing the risk of fraud losses.

José Valentin, Head of Strategic Partnerships at Zest AI, remarked, “Through our partnership with Sync1 Systems, we're making advanced fraud protection accessible to financial institutions with no per-application fees, ensuring comprehensive screening while staying ahead of emerging fraud patterns.” Valentin pointed out that robust fraud prevention not only protects individual transactions but also reinforces trust and stability across the entire financial ecosystem.

About Zest AI

Zest AI is on a mission to broaden equitable lending access. Since its inception in 2009, the company has collaborated with various financial institutions to leverage AI lending technologies, enhancing service offerings for borrowers. Recently, Zest AI was recognized in the Forbes Fintech 50 as a testament to its innovative approach and industry impact.

About Sync1 Systems

Founded in Austin, Texas, Sync1 Systems focuses on transforming the lending experience through innovative loan origination software. Their commitment to understanding the unique needs of credit unions positions them as a crucial player in today’s competitive lending landscape, supplying partners with seamless technology tailored for success.

For further information regarding this innovative collaboration and the latest updates from Zest AI and Sync1 Systems, visit their websites and explore how they are driving positive changes in the financial sector.