Embedded finance compliance controls for sponsor banks

Alloy's identity verification and fraud detection software gives banks the tools to confirm who their customers are and assess risk at every stage of the customer relationship. For banks, this means using authentication — including biometric verification — to validate customer identity at account opening, monitoring transactions and account activity for suspicious user behavior, and automating compliance processes, all while maintaining a seamless customer experience for legitimate customers. Alloy's identity and fraud prevention platform combines 270+ partner solutions with a sophisticated orchestration engine and artificial intelligence to stop fraudulent transactions before they can cause damage, giving banks a complete, real-time view of customer risk from account opening through lending and ongoing monitoring.

Alloy covers fraud management across every stage of the customer lifecycle. At account opening, the platform evaluates identity signals against 270+ data solutions to detect new account fraud and synthetic identities in real time. As customer relationships develop, Alloy monitors for account takeover, payment fraud, card fraud, ACH fraud, deposit fraud, scams, phishing attempts, and other fraudulent activity, using machine learning to score customer-level risk continuously. Alloy's approach reduces false positives, so fewer good customers face unnecessary friction while fraudsters are stopped. For banks managing embedded finance programs, Alloy extends fraud detection to fintech partner relationships, giving sponsor banks portfolio-level visibility into emerging fraud patterns.

Alloy's machine learning-powered fraud prevention tools, Fraud Signal and Fraud Attack Radar, analyze identity, behavioral, and transactional signals to assess customer risk continuously, from the moment of application through every subsequent interaction. Their machine learning models are trained on aggregated fraud behavior patterns and signals from across our network of financial institutions and fintechs, enabling real-time detection of anomalies as they emerge. Fraud Signal, Alloy's identity-centric ML model, applies AI-driven risk scoring at the customer level by capturing behaviors across a customer's application, account, and transactions into a single, actionable fraud score. Using real-time and historical data, behavioral analytics and anomaly detection surface suspicious patterns that rule-based systems alone cannot catch, allowing banks to automate fraud prevention decision-making with confidence.

Alloy automates and scales AML and financial crime compliance across the full customer lifecycle. At onboarding, the platform runs anti-money laundering screening, KYC and KYB checks, and sanctions and watchlist checks to meet BSA/AML obligations. As customer relationships develop, Alloy monitors ACH and real-time payment transactions for suspicious activities and potential money laundering, with the AI Assistant automatically routing flagged cases to compliance teams through built-in case management tools. Transaction monitoring runs continuously, giving compliance teams real-time visibility into emerging risks. For banks that require SAR filing, Alloy's case management workflows connect investigation to documentation efficiently. Centralizing financial crime compliance within the same platform used for fraud and identity risk assessment reduces the operational overhead of managing separate systems.