Commonwealth Credit Union, headquartered in Kentucky, US, has partnered with credit underwriting solutions provider Zest AI to launch CU Lending Collective, a new credit union service organisation (CUSO) specifically designed to help small credit unions adopt AI‑powered lending.

According to a joint statement, CU Lending Collective offers "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".

The CUSO aims to serve as a "repeatable blueprint" for participating credit unions to "responsibly expand access to credit while maintaining strong risk management practices", the statement continues.

Under the partnership, Zest AI will develop a custom AI‑powered scoring model intended to provide 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.