Fuse Secures $25 Million to Revolutionize Loan Origination for U.S. Credit Unions
In 2023, after three years of developing an automotive lending startup, co-founders Andres Klaric and Marc Escapa identified a significant opportunity to modernize the loan origination system (LOS), the core infrastructure of the lending industry. Recognizing the potential of large language models (LLMs) to transform this space, they pivoted their business to establish Fuse, an AI-native LOS designed to address the inefficiencies of traditional systems.
On March 16, 2026, Fuse announced the successful completion of a $25 million Series A funding round. The round was led by Footwork, with participation from Primary Venture Partners, NextView Ventures, and Commerce Ventures. This substantial investment underscores the growing demand for innovative solutions in the financial technology sector, particularly among credit unions seeking to enhance their operational capabilities.
Traditional LOS platforms serve as the primary system of record for lenders, managing the entire loan lifecycle—from initial application and underwriting to final approval and credit disbursement. However, these legacy systems often require up to a year for integration and come with costly, multi-year contracts. Such constraints have left many credit unions grappling with outdated technology that hampers efficiency and responsiveness.
Fuse aims to disrupt this status quo by leveraging artificial intelligence to streamline loan processing. By automating underwriting and other critical functions, Fuse’s platform enables lenders to handle higher loan volumes while significantly reducing operational costs. This AI-driven approach not only enhances efficiency but also positions credit unions to better serve their members in a rapidly evolving financial landscape.
To facilitate the transition for credit unions, Fuse has introduced a rescue fund totaling $5 million. This initiative offers the first 50 qualifying institutions free access to Fuse’s platform until their existing contracts with legacy LOS providers expire. Klaric emphasizes that this is not merely a marketing strategy but a genuine effort to alleviate the financial burden that prevents many credit unions from adopting new technologies.
Nikhil Basu Trivedi, co-founder and general partner at Footwork, highlighted the pressing need for technological advancement among the over 4,000 credit unions in the United States. He noted that while these institutions are eager to adopt AI solutions, they often lack the resources or knowledge to do so effectively. Basu Trivedi likened the LOS to an enterprise resource planning (ERP) or customer relationship management (CRM) system, underscoring its critical role in daily operations. He expressed confidence in Fuse’s ability to offer a more accessible and efficient alternative to traditional LOS platforms.
The loan origination market has long been dominated by established players such as publicly traded nCino and private-equity-owned MeridianLink. Fuse’s entry into this space signifies a shift towards more agile and technologically advanced solutions tailored to the unique needs of credit unions.
As the financial industry continues to evolve, the adoption of AI-driven platforms like Fuse represents a significant step forward in enhancing the efficiency and competitiveness of credit unions. By addressing the limitations of legacy systems and offering innovative solutions, Fuse is poised to play a pivotal role in the modernization of loan origination processes across the United States.
