Consumers Credit Union partners with Alloy to prevent fraud and improve its omnichannel member experience
 

The Challenge: Consumers Credit Union’s digital onboarding fraud processes were highly manual, making it difficult to keep up with emerging fraud threats and hindering member experience

As a community-based credit union, Consumers had historically been focused on its in-office member experience. After Consumers opened its onboarding funnel to digital channels, its digital onboarding fraud prevention processes were highly manual, time-consuming, and rigid.

Consumers had built some models to help determine the optimal thresholds for what the confidence score needed to be for the credit union to confidently accept an applicant, but those models didn’t evolve as fraudsters changed their tactics.

The Solution: Consumers enlisted Alloy to automate and strengthen its fraud prevention capabilities

In 2019, Consumers sought a fraud prevention platform that could transform its digital onboarding experience by enabling the credit union to orchestrate multiple data vendors, automate decision-making, and future-proof its fraud prevention strategy by making it easy to test, change, and add data vendors into its fraud workflows.  

After evaluating several platforms, Consumers chose Alloy to power a seamless and secure digital onboarding experience for its members. 

The Outcome: On average, Consumers Credit Union saves $5 in fraud losses for every dollar it spends on Alloy

By partnering with Alloy, Consumers was able to revamp its digital onboarding process: improving both its fraud prevention capabilities and member experience. Prior to Alloy, there was at least some manual touch on all applications. Now, Consumers is at a 78% auto-decision rate — ultimately providing a more seamless member experience for new members and saving the credit union a lot of hours it used to spend manually reviewing applications.  

With stronger and more automated fraud prevention processes in place, the Consumers team can spend time optimizing their fraud strategy even further and focus on other growth-oriented initiatives.  

“It’s easy to refine our processes in Alloy. I love Champion Challenger in the Testing Suite because it gives us the ability to backtest all of our previous applications.  When I introduce a new data source, I can assess its impact on outcomes and automation rates. Then, I can set it live quickly."

“In part because of Alloy, we can onboard members smoothly,” said Hoskins, “ensuring a seamless experience. This allows us to have confidence in a member's legitimacy, enabling us to offer members additional products and services to foster a growing relationship. With Alloy's support, we no longer need to concern ourselves with their transactions or the potential consequences thereafter.”

The Consumers team also views Alloy’s expertise as a key benefit to the partnership. At one point, the Consumers team suspected the credit union was the victim of a high-velocity bot attack. Application volume doubled overnight, with applications coming in at all hours of the day. As Consumers contemplated taking its digital application completely offline, the Alloy team stepped in to provide suggested changes to workflows that helped Consumers stop the bleeding and prevent this type of bot attack in the future. Ultimately, the Consumers team has estimated that for every dollar it spends on Alloy, it saves $5 in fraud losses.

What’s next for Consumers and Alloy?

Consumers is so pleased with its results that the credit union is expanding its use of Alloy into other lines of business. Consumers started leveraging Alloy’s Journeys functionality to bring new channels into its workflows. So far, Consumers has implemented Alloy in-branch, and also plan to use Alloy for business onboarding. 

The Consumers team is also excited to implement document verification through Alloy’s codeless SDK and continue to expand Alloy into other lines of business as the credit union offers its members a frictionless experience — all while keeping fraudsters at bay.