Fuse raises $25M to disrupt aging loan origination systems used by US credit unions

Fuse, a startup founded by Andres Klaric and Marc Escapa, has secured a $25 million Series A funding round led by Footwork, with participation from Primary Venture Partners, NextView Ventures, and Commerce Ventures. The company is building an AI-native Loan Origination System (LOS) designed to replace the aging, legacy software used by thousands of U.S. credit unions. These traditional systems, like those from nCino and MeridianLink, are notoriously slow to integrate—often taking a year—and lock institutions into multi-year, expensive contracts. Fuse's core pitch is that by leveraging LLMs, its platform can automate complex processes like underwriting, help lenders handle higher volumes, and significantly reduce operational costs.

To accelerate adoption, Fuse is deploying an aggressive go-to-market strategy that includes a $5 million 'rescue fund.' This program offers the first 50 qualifying credit unions free access to the Fuse platform until their current contracts with legacy vendors expire. The move directly addresses a major pain point: many institutions cannot afford the prohibitive cost of breaking existing contracts to switch providers. With over 100 customers already onboard, Fuse is positioning itself against other AI-infused LOS competitors like Casca and Glide. Investors, including Footwork's Nikhil Basu Trivedi, are betting that the over 4,000 credit unions in the U.S., which serve the American middle class, are desperate for a technological overhaul but lack the know-how to implement AI solutions on their own.