Fuse, a financial technology startup building an AI-driven loan origination system, has raised $25 million in Series A funding to modernize the lending infrastructure used by credit unions in the United States.
The round was led by Footwork with participation from Primary Venture Partners, NextView Ventures, and Commerce Ventures. The company aims to replace legacy loan management platforms with AI-native software designed to streamline lending workflows, reduce operational costs, and accelerate loan processing.
What The Company Does
Fuse develops a loan origination system (LOS) designed specifically for modern lending operations. In financial institutions, the LOS acts as the central system managing the entire lifecycle of a loan, including application intake, underwriting, approval processes, and credit disbursement.
Traditional LOS platforms are often built on legacy software infrastructure and require lengthy integration processes. According to the company, implementation timelines can extend up to a year, and many institutions operate under multi-year contracts that are costly to replace or modify.
Fuse’s platform uses AI-based automation and language models to simplify underwriting processes and increase loan processing capacity. The system is designed to support higher application volumes while reducing the operational burden on lending teams.
The startup reports that more than 100 institutions are already using its platform. By positioning its system as an AI-native alternative, Fuse aims to help smaller financial institutions adopt modern technology without the complexity associated with traditional enterprise banking systems.
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Market Context / Industry Background
Loan origination systems are a foundational component of financial institutions’ technology infrastructure. Similar to enterprise resource planning or customer relationship management systems in other industries, the LOS functions as the core operational platform for lending organizations.
However, many credit unions in the United States continue to rely on legacy systems that were designed years or even decades ago. These platforms often lack automation capabilities and are difficult to upgrade or replace due to complex integrations and long-term vendor contracts.
The United States has more than 4,000 credit unions, many of which serve regional communities and middle-income customers. While these institutions compete with larger banks, they often operate with limited technology resources and smaller engineering teams.
As artificial intelligence becomes increasingly embedded in financial services, startups are targeting infrastructure layers such as loan processing systems where automation can significantly improve efficiency. This shift has led to the emergence of several AI-focused lending infrastructure companies seeking to modernize core banking tools.
Fuse is entering a competitive landscape that includes newer AI-enabled platforms as well as established vendors such as nCino and MeridianLink, which currently provide loan origination systems to many financial institutions.
Founder / Investor Commentary
Fuse was founded by Andres Klaric and Marc Escapa, who originally began building an automotive lending startup before identifying broader opportunities in the lending infrastructure market.
While developing their initial product, the founders recognized that large language models could be applied to automate processes within loan origination systems, prompting them to pivot the company toward building a new AI-native LOS platform.
Klaric said the shift was motivated by frustration with the limitations of existing software used across the lending industry.
Investor Nikhil Basu Trivedi, co-founder and general partner at Footwork, said the firm backed Fuse due to the scale of the opportunity in credit union technology.
“We know the credit unions are really hurting and want to adopt AI but have no idea how to do it,” he said, pointing to the large number of institutions still operating on outdated systems.
Klaric also emphasized that improving credit union technology could have broader economic implications.
“Credit unions and smaller financial institutions have everything required to win,” he said. “They have the local presence, the local focus, great member experience. The only thing they don’t really have is the right technology.”
Growth Plans / Use Of Funds
The new funding will support Fuse’s efforts to expand its platform across additional credit unions and accelerate product development around AI-powered lending automation.
To address the challenge posed by long-term contracts with legacy vendors, the company has also launched a program designed to ease the transition for financial institutions adopting its platform. Fuse has allocated $5 million to what it calls a rescue fund, which will provide qualifying credit unions with free access to its software until their existing contracts with legacy LOS providers expire.
The initiative is intended to reduce switching costs that often prevent smaller financial institutions from adopting newer technology platforms.
As adoption of AI tools continues to expand across financial services, Fuse plans to position its system as a flexible infrastructure layer that allows credit unions to modernize lending operations without replacing their entire banking stack.
About Fuse
Fuse is a financial technology company developing an AI-native loan origination system for credit unions and financial institutions. Founded by Andres Klaric and Marc Escapa, the company builds software designed to automate underwriting, streamline loan processing, and improve operational efficiency in lending operations. Fuse focuses on helping credit unions modernize legacy technology infrastructure while maintaining scalable lending workflows.
