Commonwealth Credit Union (CCU) and Zest AI, a provider of AI-powered credit underwriting solutions, have partnered to establish CU Lending Collective. This new credit union service organization (CUSO) is designed to enable small credit unions to adopt and implement advanced AI-powered lending technology without the typical high costs or operational complexities. It aims to offer an accessible and compliant pathway for smaller institutions to leverage enterprise-grade AI, providing a framework for modernizing lending operations.
CU Lending Collective addresses the challenges small credit unions face, such as approving more members, competing with national lenders, and meeting regulatory expectations with limited resources. By offering proprietary AI models in a compliant, affordable, and operationally supported manner, participating credit unions can access machine learning technology to expand credit access responsibly while maintaining risk management practices.”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. Christensen noted that since partnering with Zest AI, CCU achieved loan growth exceeding 14% in 2025, while maintaining delinquency and charge-off performance.
The collaboration involves Zest AI developing a custom AI-powered scoring model. This model will provide small credit unions with a more accurate assessment of credit risk than traditional credit scores and estimate the likelihood of default across key consumer products, including auto loans, personal loans, and credit cards.
The program components include an AI-powered credit score model specifically for small credit unions, validated performance using historical lending data, built-in regulatory compliance features (including fair lending and model risk management documentation), hands-on operational guidance from CU Lending Collective, and end-to-end technology management from Zest AI, covering deployment, secure hosting, and ongoing monitoring.”Small credit unions are the backbone of community lending, yet they are often locked out of the most advanced financial technology,” stated 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.”To provide further information, CU Lending Collective will host a live webinar titled ‘Inside the CU Lending Collective: How Small Credit Unions Can Compete with the Biggest Lenders’ on February 25, 2026, at 11:00 a.m. Pacific. The session will feature Karen Harbin, President and CEO of Commonwealth Credit Union, and Mike de Vere, CEO of Zest AI. They will discuss how cooperative, AI-powered underwriting can support smaller credit unions in expanding approvals, strengthening compliance, and competing effectively.
CU Lending Collective is a credit union service organization (CUSO) focused on delivering AI-powered underwriting for small and mid-sized credit unions. Established in 1951, Commonwealth Credit Union serves over 138,000 members nationwide and is Kentucky’s largest credit union. Zest AI, founded in 2009, aims to modernize lending and strengthen the financial system. The company provides AI technology to help lenders identify creditworthy borrowers and offers solutions for underwriting, fraud detection, and lending intelligence.
