New Collaboration Brings AI to Michigan Credit Unions

Credit unions throughout Michigan now have access to an artificial intelligence-powered credit decisioning platform thanks to a partnership formed between the Michigan Credit Union League and Scienaptic AI, the MCUL revealed Wednesday.

The New York, N.Y.-based Scienaptic’s platform allows financial institutions to leave behind traditional methods of credit management, such as relying solely on FICO scores, and instead evaluate potential borrowers using alternate data, raw trade line level bureau data and AI – the method’s utilized by Scienaptic’s solution, according to the company’s LinkedIn page. The process enables financial institutions to better identify qualified loan prospects, flag high-risk prospects and ultimately “attract prospects that were previously off the map and underwrite profitably for a previously underserved market,” the tech company’s website stated.

As a result of the new alliance, all 208 of MCUL’s member credit unions will have the option of leveraging Scienaptic’s platform. The company’s current Michigan clients include Advantage One Credit Union ($211 million, Brownstown) and 4Front Credit Union ($896 million, Traverse City).

“Our partnership with Scienaptic is based on an alignment of core missions: To help credit unions better provide for their members,” MCUL CEO Patty Corkery stated. “We believe this platform is the next step forward to allowing nearly 5.8 million members access the financial services they need.”

MCUL Vice President of Michigan Solutions Eric Loehr added, “This alliance represents an opportunity for Michigan credit unions to take advantage of innovation and AI in the lending industry. The use of Scienaptic’s AI-based credit underwriting platform will play a key role in helping our credit unions grow membership, strengthen charters and provide excellent service to members.”

In addition to at least 23 credit union clients listed on its website, Scienaptic works with banks, fintechs and other specialty lenders.

This is the second time Scienaptic has collaborated with a state league to bring its AI-powered solution to member credit unions – in December 2021, it announced a similar partnership with the Dakota Credit Union Association.

“We are excited for this [MCUL] collaboration as our platform will allow credit unions in Michigan to grow their loan portfolios and enrich member lives while minimizing their risk,” Kathryn Bonesteel, head of partnerships at Scienaptic, said. “It will also enable them to reach underserved members and enhance member experience.”