Zest AI to Deliver First Seamless AI Application Fraud Detection for MeridianLink Clients
Rhea-AI Summary
MeridianLink (NYSE: MLNK) and Zest AI announced an expanded partnership to provide AI-powered fraud detection to MeridianLink's 2,000+ financial institution customers. The collaboration will integrate Zest Protect, an AI-powered fraud detection tool, into MeridianLink's platform to combat rising fraud threats.
The partnership addresses significant fraud concerns, as consumer fraud losses exceeded $10 billion in 2023, with 69% of credit unions and community banks reporting increased fraud cases. 79% of these institutions reported direct fraud losses exceeding $500K. Zest Protect offers protection against compromised identities, first and third-party fraud, and misreported income, while maintaining quick application processing.
The solution is customizable, allowing financial institutions to adjust risk thresholds by fraud type and portfolio. It integrates seamlessly with MeridianLink's loan origination system and evaluates all applications without per-application costs, helping institutions combat various fraud types, including AI-generated fraud.
Positive
- Integration provides fraud protection to 2,000+ financial institutions
- No per-application costs for fraud detection
- Customizable risk thresholds for different fraud types and portfolios
- Seamless integration with existing loan origination systems
Negative
- None.
Insights
This strategic partnership marks a pivotal advancement in MeridianLink's service offering, addressing a critical market need as financial fraud reaches unprecedented levels. The integration of Zest Protect into MeridianLink's platform represents a significant value proposition, particularly considering that 79% of credit unions and community banks reported fraud losses exceeding $500,000.
The partnership's strategic value lies in three key aspects:
- Zero per-application costs, enabling comprehensive fraud screening across all applications, which differentiates it from traditional pay-per-use models
- Seamless integration with existing loan origination systems, reducing implementation barriers and operational friction
- Customizable risk thresholds that allow financial institutions to adapt to regional fraud patterns and specific community needs
For MeridianLink shareholders, this partnership could drive revenue growth through increased platform adoption and customer retention. The company's ability to offer advanced AI-powered fraud detection without disrupting existing workflows positions it favorably against competitors in the financial software space. The endorsement from VyStar Credit Union, a significant player in the credit union sector, adds credibility to the solution's effectiveness.
The timing of this partnership is particularly strategic, coinciding with the rising threat of AI-generated fraud. By addressing emerging fraud vectors while maintaining operational efficiency, MeridianLink demonstrates forward-thinking product development that could translate into sustained competitive advantage in the financial technology sector.
Expanded partnership to provide financial institutions with smarter, simplified fraud protection
The Federal Trade Commission estimates that consumer fraud losses in 2023 exceeded
To tackle this issue, Zest Protect offers robust layers of protection against compromised identities, first and third-party fraud, as well as misreported income, fully integrated with lenders' existing fraud review processes. This partnership allows MeridianLink customers to maintain their application processes with confidence, providing borrowers with a modern, speedy experience, with the goal of also significantly reducing their fraud losses. Zest Protect is also highly configurable and customizable, giving financial partners the ability to finely tune the risk thresholds by fraud type, portfolio, and more, in one unified solution.
"Zest AI has been a trusted partner delivering proven value to our customer base, and we're excited to expand on that success with Zest Protect to combat rising and more sophisticated fraud in today's ever-changing lending landscape," said Megan Pulliam, SVP of MeridianLink® Marketplace. "The technology will be a game changer as it seamlessly integrates with our loan origination system to cover all application fraud, while streamlining automation workflows, and can be customized for our customers by specific regions and communities."
"Fraud is an escalating challenge for lenders, and we're hearing it directly from our more than 100 shared customers. Every dollar lost to fraud costs financial institutions four times that much in expenses and lost time," said Zest AI Head of Strategic Partnerships José Valentin. "Expanding our partnership with MeridianLink extends the reach of Zest Protect to provide a unified solution for application fraud with no per-application cost - so every application can be evaluated. Our team is dedicated to staying on top of emerging threats, making sure the tool can more accurately detect all types of fraud, including the growing threat of AI-generated fraud. Zest AI's growing partner network will help more lenders outsmart complex fraud now and in the future for quicker, more accurate decisioning."
"Zest AI has become an integral part of our lending process, giving us the confidence to make smarter decisions while tackling the growing issue of fraud head-on. We trust Zest AI for its precision and reliability in underwriting and its innovative approach to fraud detection. This partnership between Zest AI and MeridianLink strengthens our ability to protect our institution and members from fraud, and we're proud to continue working together to stay ahead of evolving threats," said Joel Swanson, CLO, VyStar Credit Union.
About Zest AI
Zest AI is a tech company on a mission to broaden access to equitable lending. Since 2009, we've worked with financial institutions to use AI lending technology to better serve their borrowers. Today, we work with all types of lenders as a catalyst for economic equity by helping them leverage AI's potential for good. Most recently, we were named in the Forbes Fintech 50. Learn more at Zest AI and connect with us on LinkedIn.
About MeridianLink
MeridianLink® (NYSE: MLNK) empowers financial institutions and consumer reporting agencies to drive efficient growth. MeridianLink's cloud-based digital lending, account opening, background screening, and data verification solutions leverage shared intelligence from a unified data platform, MeridianLink® One, to enable customers of all sizes to identify growth opportunities, effectively scale up, and support compliance efforts, all while powering an enhanced experience for staff and consumers alike.
For more than 25 years, MeridianLink has prioritized the democratization of lending for consumers, businesses, and communities. Learn more at www.meridianlink.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/zest-ai-to-deliver-first-seamless-ai-application-fraud-detection-for-meridianlink-clients-302361803.html
SOURCE Zest AI
FAQ
What is the impact of MeridianLink's (MLNK) partnership with Zest AI on fraud detection?
How much did consumer fraud losses amount to in 2023 according to MLNK's announcement?
What percentage of credit unions and community banks reported increased fraud cases?
What types of fraud does the new MLNK-Zest AI partnership protect against?
How many financial institutions will benefit from MLNK's Zest AI fraud detection integration?
