Zest AI: The AI That Decides Who Gets a Loan… And Why I’m Not Impressed
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Let’s talk about Zest AI, the fintech platform that claims to be "redefining fair lending" by using artificial intelligence to decide who gets a loan and who doesn’t.
On paper, it sounds revolutionary.
Banks and lenders use outdated credit models that rely on thin files, old FICO scores, and yes, sometimes, human bias.
Zest AI steps in with machine learning, big data, and a promise of more accurate, faster, and less biased lending decisions. It analyzes everything from traditional banking data to spending patterns, digital behavior, and even alternative financial signals to build a fuller picture of a borrower.
Sounds great, right?
They claim to:
- Boost loan approval rates by 20% without increasing risk
- Reduce defaults with smarter predictions
- Promote financial inclusion for the "credit invisible"
- Offer full transparency (no black-box AI)
- Comply with FCRA, ECOA, and global banking regulations
And sure, that’s all very impressive. There’s no denying that Zest AI is technically advanced. It’s built by smart people, used by real banks, and has case studies showing measurable impact.
But here’s the thing…
Hazem Abbas
I don’t like it. And here’s why.
Look, I’m all for innovation in finance. I love open-source tools, ethical AI, and anything that expands access to credit — especially for underserved communities. But Zest AI feels like a step forward that still leaves too many red flags behind.
It’s Not as Transparent as It Claims
They talk a lot about "explainable AI", how lenders can see why a decision was made. But let’s be real: if you’re a regular borrower, you won’t get that transparency. You’ll just see "declined" with a vague reason. The "transparency" is for the bank, not you.
So is it really ethical if only the lender understands the decision?
Hazem Abbas
“Fair” is a Tricky Word (I do not believe It is fair)
Zest AI says it reduces bias. But AI doesn’t eliminate bias, it inherits it. If the training data reflects historical inequality (which it does), then even the smartest algorithm can perpetuate systemic discrimination under the guise of "neutrality."
Just because it’s mathematical doesn’t mean it’s fair.
It’s just a Gatekeeper
At the end of the day, Zest AI isn’t democratizing finance, it’s automating the gatekeeping. Instead of a loan officer saying "no," now it’s an algorithm. Same outcome. Just faster.
And let’s not forget: this isn’t a tool for individuals. You can’t download Zest AI and check your own risk score. It’s a closed system for institutions, which means power still sits with the banks.
Where’s the User (Human) Control?
Compare this to open-source, self-hosted AI tools like FinGPT, where you can inspect the code, tweak the model, and understand how it works. Zest AI? It’s proprietary. You can’t audit it. You can’t modify it. You just have to trust it.
And in finance, blind trust is dangerous.
Hazem Abbas
So… Is Zest AI All Bad?
No. Not at all, I am not saying it is bad, but as someone who never apply to get loan from any bank, I say it is NOT all GOOD!
It’s a powerful tool. It’s helping lenders make better decisions. It is expanding access to credit in places where traditional models fail. And yes, it’s more advanced than 90% of legacy credit scoring systems.
But calling it “ethical AI” feels like marketing spin.
True fairness in lending isn’t just about better algorithms. It’s about giving power back to people, letting them see, understand, and challenge the systems that judge their financial worth.
Zest AI improves the machine, but it doesn’t break the system.
The Future Should Be Open, Not Just Smart
I want a future where you can run your own credit analysis, train your own model on open data, and prove your worth without begging an algorithm for approval.
Tools like FinGPT, OpenBB, and self-hosted financial AI are moving us toward that world, a world where AI serves the individual, not just the institution.
Zest AI? It’s a step in the right direction.
But it’s not the destination.
Until then, I’ll keep my skepticism, and my support, with the open-source revolution.
