Orion Financial Taps AI to Modernize Lending and Boost Inclusion

MEMPHIS, TN – January 20, 2026 – Orion Financial, a cornerstone of the Mid-South financial community for over six decades, has announced a significant technological leap forward. The Memphis-based credit union is partnering with Scienaptic AI, a global leader in artificial intelligence-powered credit decisioning, to modernize its underwriting process and expand lending opportunities for its more than 75,000 members.

This collaboration marks a pivotal moment for the $1.2 billion institution, reflecting a broader industry trend where traditional community lenders are embracing advanced technology to navigate a rapidly evolving financial landscape. By deploying Scienaptic's AI platform, Orion aims to enhance the precision of its credit decisions, automate lending workflows, and ultimately provide more inclusive access to credit without straying from its foundational, member-centric philosophy.

“At Orion Financial, our focus has always been on making thoughtful lending decisions that reflect the real needs of our members,” said Ashley McDurmon, President & CEO at Orion Financial. “As our lending continues to expand, we see advanced AI as a critical enabler of that focus. Scienaptic AI gives us deeper member insight and greater automation, helping us scale responsibly while staying true to our mission and risk standards.”

The Modernization Imperative for Community Lenders

For institutions like Orion Financial, founded in 1957, the decision to integrate AI is not merely about adopting the latest trend; it is a strategic imperative. Today's credit unions face intense competition from large national banks and nimble fintech startups that have built their models on sophisticated digital platforms and AI-driven analytics. This environment puts pressure on community-focused lenders to enhance their digital offerings and operational efficiency to meet evolving member expectations.

The challenge lies in scaling operations to handle growing loan volumes and diverse product mixes while preserving the personalized, relationship-based service that defines the credit union movement. Manual or semi-automated underwriting processes, while historically effective, can become bottlenecks, limiting the speed and scope of lending. Orion’s move addresses this head-on, seeking a technology layer that can automate routine tasks and provide deeper analytical insights, freeing up loan officers to focus on more complex cases and member relationships.

By implementing a modern AI-driven platform, the credit union is positioning itself to not only compete but also to deepen its community impact. The goal is to achieve a level of efficiency and analytical sophistication that allows for responsible growth, ensuring that as Orion expands, its lending practices remain as inclusive and thoughtful as ever.

Beyond the Score: AI's Promise for Financial Inclusion

The core of the partnership lies in Scienaptic AI’s ability to look “beyond the score.” Traditional credit scoring models have long been criticized for their limitations, often excluding individuals with thin credit files, recent immigrants, or young adults who are otherwise creditworthy. This can create significant barriers to financial stability and growth.

Scienaptic's platform is designed to mitigate these gaps by integrating a vast array of alternative data points into its machine learning algorithms. This allows for a more holistic and nuanced assessment of a borrower's true capacity and willingness to repay a loan. The technology has proven capable of scoring over 95% of applicants who lack a traditional credit score, a demographic often automatically declined by legacy systems. According to Scienaptic, its platform helps approve over 1.7 million underserved individuals for credit each month.

This advanced analytical capability is crucial for financial inclusion. Research has shown that AI models, when properly designed and monitored, can significantly reduce inherent biases present in older models, leading to more equitable outcomes. For instance, Scienaptic reports that its technology can increase loan approvals for legally protected classes by over 45% without increasing the lender's risk exposure. By identifying so-called “hidden prime” borrowers—those with low traditional scores but a low probability of default—the AI empowers institutions like Orion to say “yes” more often and more responsibly.

“Orion Financial combines a strong community foundation with a clear, forward-looking approach to lending,” noted Patrick McElhenie, Chief Growth Officer at Scienaptic AI. “As Orion modernizes its credit underwriting, Scienaptic’s AI platform will serve as an intelligence layer that empowers more automated, data-driven lending decisions, enabling responsible growth.”

Balancing Innovation with Prudence and Trust

While the potential benefits of AI in lending are substantial, its adoption is not without challenges. Financial regulators and consumer advocates have raised valid concerns about the “black box” nature of some AI models, where the logic behind a decision is not easily explainable. This lack of transparency can pose compliance risks, particularly concerning fair lending laws that require lenders to provide clear reasons for adverse actions.

Scienaptic addresses this by integrating rigorous risk and fair lending monitoring processes directly into its platform, providing the explainability and audit trails necessary for regulatory compliance. This built-in governance is a key differentiator, offering credit unions a pathway to innovation that does not compromise their commitment to ethical and transparent practices. Furthermore, data privacy and security remain paramount, requiring robust protocols to protect sensitive member information used by the algorithms.

The confidence in Scienaptic’s approach is reflected in its remarkable growth and industry validation. The company has seen over 2,000% growth in the past three years and has been recognized on both the Deloitte Technology Fast 500 and CB Insights Fintech 100 lists. Perhaps most tellingly, Scienaptic operates a Credit Union Service Organization (CUSO) that has received strategic equity investments from 15 of its own credit union clients. This unique ownership model, where customers are also investors, demonstrates a deep alignment of interests and a powerful vote of confidence from the very community it serves, reinforcing the credit union principle of “people helping people.” This partnership between Orion Financial and Scienaptic AI is more than just a technology deal; it represents a blueprint for how community financial institutions can harness the power of AI to foster growth, enhance efficiency, and champion financial inclusion for all their members.