What is an Identity Decisioning Platform (IDP)?

What is IDP

As Seen On: American Bankers Association, CCG Insights, Forrester and TechCrunch — an Identity Decisioning Platform (IDP) can help banks and fintech companies meet compliance requirements, fight fraud, and automate identity and risk decisions.

But what exactly is an IDP?

An Identity Decisioning Platform is the end-to-end system for identity and risk management decisions. IDPs connect you to multiple data sources using a single API, enabling banks and fintech companies to view all of their identity and risk data in one dashboard, set custom workflows, logic and risk thresholds, and understand their customers and their behaviors from the day they onboard and beyond.

How do I know if I need an IDP?

The three main use cases for IDPs are to meet KYC/AML compliance requirements, mitigate fraud in the financial services industry and evaluate risk in approving new customers or offering new credit products. Some organizations choose to build their own risk management solutions in-house to solve for these challenges. While this can be a satisfactory decision for some, in-house solutions do not typically provide the same flexibility and functionality that a full IDP provides.

If you’re wondering if you need an IDP, ask yourself the following questions:

  • Is your organization a bank, a credit union or a fintech company?

  • Does your organization have to perform KYC/AML checks when you onboard new customers?

  • Does your organization have to monitor your customers’ ongoing financial activity to prevent fraud or report financial crimes?

  • Does your organization have a product where you need to underwrite customers for a line of credit?

If you answered “yes” to any of the above questions, an IDP could help you make better and faster identity and risk decisions.

3 key components of an IDP

IDPs can enable secure and seamless customer experiences throughout the client lifecycle- from origination (bank account opening) to ongoing touchpoints like credit applications and transactions.

Verify your new applicants' PII data and check them against KYC and AML requirements, automating the new customer decision process with precision. Learn more

Credit underwriting
Leverage the information you gathered at onboarding to make faster and more informed credit decisions. Learn more

Transaction monitoring
Monitor your customers’ ongoing financial activity and flag suspicious or fraudulent behaviors to help you prevent fraud and remain compliant through the entire customer lifecycle. Learn more

The benefits of an IDP

  • Integrate seamlessly into your existing tech stack — no rip and replace necessary!

  • Provide a safe and seamless customer experience — improve conversion rates by automating more decisions.

  • Access to an extensive list of data sources — choose the right data sources for you and your business and integrate them all within your IDP.

  • Future-proof your fraud prevention technology and keep up with the ever-changing fraud landscape.

  • Free up engineering resources by designing your workflows and adding new data sources without coding.

  • Tap into a team of compliance and fraud experts from your IDP vendor to investigate fraud attacks and optimize your workflows.

  • Get a holistic, evolving view of your customers’ identity and risk information with KYC, ongoing account monitoring, and credit application information in one platform.

IDPs are changing the game for how banks and fintech companies respond to the evolving fraud and compliance landscape. Learn more about IDPs here.

Alloy’s IDP helps over 200 financial institutions stay compliant and outsmart fraud.

See how it works.

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