Perhaps now small credit unions can tap the same technology leveraged by their much larger competitors.

On Wednesday, Commonwealth Credit Union (CCU) and Zest AI launched what the organizations see as a first-of-its-kind credit union service organization (CUSO) created specifically to help small credit unions adopt and deploy advanced artificial intelligence-powered lending technology.

Designed with the needs and constraints of smaller institutions in mind, officials said the CU Lending Collective provides an accessible and compliant path for small credit unions to leverage enterprise-grade AI without the cost, complexity, or operational burden typically associated with emerging technologies.

CCU and Zest AI said the CUSO is intended to serve as a repeatable blueprint for how small credit unions can confidently modernize their lending operations to better serve their communities.

CU Lending Collective is geared to address a critical challenge facing small credit unions today: working every day to approve more members, compete with national lenders, and meet rising regulatory expectations with limited resources.

By delivering proprietary AI models in a compliant, affordable, and operationally supported manner, CCU and Zest AI said participating credit unions will gain access to advanced machine learning technology that can help them responsibly expand access to credit while maintaining strong 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,” Commonwealth Credit Union executive vice president Jaynel Christensen said in a news release.

“Since partnering with Zest AI, we’ve delivered loan growth that outpaced industry norms — exceeding 14% in 2025 — while maintaining strong delinquency and charge‑off performance. We’re saying yes to more members and responsibly expanding our credit reach,” Christensen continued.

“By establishing the CU Lending Collective, we can share Commonwealth’s real-world lending experience and proven results, powered by Zest’s technology, with small credit unions, helping them achieve similar outcomes in their own communities,” Christensen went on to say.

Under the partnership, Zest AI will develop a custom AI-powered scoring model that 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 includes:

—An AI-powered credit score model designed specifically for small credit unions.

—Proven performance, validated using real historical lending data from community-based institutions.

—Built-in regulatory compliance, including fair lending, model risk management documentation, and mapped key factor or reason codes for transparency and explainability.

—Hands-on operational guidance from the CU Lending Collective to support implementation and adoption.

—End-to-end technology management from Zest AI, including 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,” Zest AI CEO Mike de Vere said. “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,” de Vere added.

To help credit unions gather more details, the 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 Feb. 25 at 2 p.m. (ET).

The session will feature de Vere and Commonwealth Credit Union president and CEO Karen Harbin, who will discuss how cooperative, AI-powered underwriting can help smaller credit unions expand approvals, strengthen compliance, and compete more effectively in today’s lending landscape.

The webinar will offer a practical look at how CU Lending Collective works, including real-world use cases and lessons learned from early participants.

Credit unions can register for the webinar here.