In this episode of Bits & Banks, Jason Pendergist, Chief Credit and Lending Officer at Kitsap Credit Union, joined Aditya Khandekar of Corridor Platforms to unpack how AI can sharpen lending decisions, from looking beyond credit scores to connecting underwriting, portfolio performance, and pricing.

Key ideas:

• Credit scores only tell part of the story — Probability of default needs to be considered alongside loss given default. Income stability, loan-to-value, vehicle depreciation, and dealer quality all help reveal whether a loan makes sense for the institution and the member.
• Scoring a loan isn’t the same as automating a decision — End-to-end decisioning brings together credit assessment, deal structure, pricing, and ongoing performance analysis. Generating a score is just one step.
• Portfolio performance should shape the next decision — Reviewing losses, early delinquency, and missed lending opportunities helps teams refine credit policies and determine where pricing needs to change.
• Human expertise moves toward the bigger picture — Jason described how automation frees experienced underwriters to assess overall strategy, while preserving a second look for existing members whose applications would otherwise be declined.
• Make the right loan for the member — Qualifying for a larger loan doesn’t always make it a good financial choice. Responsible lending includes difficult conversations about affordability, negative equity, and sustainable borrowing.
• Specialize in lending, diversify the balance sheet — Loan participations let institutions sell excess production and buy assets others originate well. Jason sees potential for tokenization to simplify those transfers, while recognizing that industry adoption remains early.