Fuse has secured a $25 million Series A funding round to disrupt outdated loan origination systems plaguing U.S. credit unions.
The AI-native platform automates the entire loan lifecycle, from application to disbursement, slashing costs and boosting efficiency.
Transforming Credit Union Lending
Over 4,000 U.S. credit unions rely on legacy systems that lock them into expensive, multi-year contracts and hinder AI adoption.
Co-founders Andres Klaric and Marc Escapa pivoted from an automotive lending startup in 2023 after recognizing the power of large language models for modernizing loan origination.
Key Investors Fuel Growth
The round was led by Footwork, with participation from Primary Venture Partners, NextView Ventures, and Commerce Ventures.
Fuse already serves more than 100 customers, demonstrating rapid traction in the fintech space.
Innovative Rescue Fund Initiative
To ease transitions, Fuse launched a $5 million rescue fund offering free access to the first 50 qualifying credit unions until their legacy contracts expire.
Klaric emphasized that credit unions possess strong local presence and member focus but lack cutting-edge technology to compete effectively.
Investor Nikhil Basu Trivedi from Footwork highlighted how credit unions are eager for AI but struggle with implementation amid entrenched legacy LOS providers.
The platform positions itself against incumbents like nCino and MeridianLink, as well as emerging rivals Casca and Glide.
By enabling quicker integrations and automation, Fuse promises to empower credit unions serving America's middle class with scalable, cost-effective lending solutions.
Looking ahead, the funding will accelerate product development and market expansion, potentially reshaping the $1 trillion credit union lending landscape.
Andrew Lee
