What is an identity and fraud prevention platform?

Financial products are inherently more challenging to build than other, less-regulated products. Financial institutions (FIs) and fintechs have the potential to serve nearly everyone, but compliance obligations and the speed and sophistication of fraud hold them back.

Fortunately, companies building financial products can leverage modern identity and fraud prevention platforms to understand the identity of their customers throughout the entire customer lifecycle. With an identity and fraud prevention platform, companies can offer excellent financial products and optimize growth while minimizing risk, enabling them to outpace fraud and confidently serve more people around the world.

But what exactly is an identity and fraud prevention platform?

How do I know if I need an identity and fraud prevention platform?

The three main use cases for identity and fraud prevention platforms are to fight fraud, meet Know Your Customer (KYC), Know Your Business (KYB), and anti-money laundering (AML) compliance requirements, and evaluate customer risk levels. Some organizations choose to build their own risk management solutions in-house to solve 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 identity and fraud prevention platform provides.

Check out our eBook to decide if you should build or buy an identity and fraud prevention platform

If you’re wondering if you need an identity and fraud prevention platform, ask yourself the following questions:

• Is your organization providing a financial product or service?
• Does your organization have to perform KYC, KYB, AML, or fraud checks?
• Does your organization have an obligation 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?
• Does your organization offer embedded finance products?
• Is your organization a financial institution or fintech that is operating in more than one country?
• Is your organization looking for an enterprise-wide platform for managing identity, fraud, compliance, and credit risk?

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

What makes up an identity and fraud prevention platform?

Identity and fraud prevention platforms can enable secure and seamless customer experiences throughout the client lifecycle — from origination (bank account opening) to ongoing touchpoints like changes in a customer's personally identifiable information (PII) and ongoing transactions.

Customer onboarding

Confidently onboard new customers by bringing together the most innovative sources of risk intelligence to automate your identity, compliance, fraud, and credit risk decisions. Learn more about customer onboarding

Ongoing fraud 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. The information captured during onboarding, when viewed with ongoing transaction and account activity, creates an evolving customer risk profile. Learn more about ongoing fraud monitoring

Credit decisioning

Manage the full credit lifecycle by streamlining underwriting checks at origination and on an ongoing basis based on the evolving behavior of your borrowers. Paired with insights from third-party data sources for the richest set of credit signals, you’ll get a clear understanding of who your customer is, and you can make smarter, more informed credit underwriting decisions. Learn more about credit underwriting

Compliance automation

Future-proof your digital identity verification workflow so you can manage your end-to-end compliance program in a single dashboard, including perpetual KYC/KYB, sanctions and watchlist monitoring, transaction monitoring, and embedded finance risk management. Learn more about Alloy’s compliance solutions

The benefits of an identity and fraud prevention platform

• 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.
• Orchestrate with the broadest network of third-party solutions with global coverage — try and test different data sources without the fear of vendor lock-in.
• Leverage AI tools that are actionable, not just informative, to detect and remediate fraud threats at onboarding and throughout the customer lifecycle.
• Bring the best data sources and policies together to provide a centralized view of customer risk.
• Seamlessly extend the same level of fraud controls across your channels while providing your customers with a consistent experience.
• Future-proof your fraud prevention technology and keep up with the ever-changing fraud landscape.
• Free up engineering resources by designing your policies and testing/adding new data sources without coding.
• Contain threats and deploy dynamic friction in real-time with payment interdiction, step-up, and other automated actions on high-risk activities.
• Tap into a team of compliance and fraud experts from your identity and fraud prevention platform vendor to investigate fraud attacks and optimize your policies.
• Get a holistic, evolving view of your customers’ identity and risk information with perpetual KYC, ongoing account monitoring, and credit application information in one platform.

Identity and fraud prevention platforms are changing the game for how FIs and fintechs respond to the evolving fraud and compliance landscape. Learn more about identity and fraud prevention platforms here.