Elements Financial Credit Union

Elements Financial Credit Union uses Alloy for faster auto-approvals and fraud prevention

Alloy Onboarding helps Elements meet member expectations and stop more fraud at origination

At a glance

Industry
Credit Union
Company Size
190+ employees
Established
1930
Headquartered
Indianapolis, IN

Assets
More than 100,000 members and $2.3 billion in assets

Elements Financial is an employer-based credit union that partners with more than 200 organizations to offer financial products directly to employees. Originally founded in 1930 by Eli Lilly and Company, Elements now serves members in all 50 states and more than 50 countries, with a focus on financial education and empowering financial wellness and success.

Elements seeks to make their onboarding process as easy and frictionless as possible. They deliver an exceptional member experience with accessible products that meet their members’ needs and match their expectations. To grow both deposit dollars and to open same-day memberships, Elements needed a solution that would reduce manual reviews, lead to more automatic approvals of digital applications, and integrate easily with Blend — their cloud-based banking platform.

60%
60% decrease in manual review rate
59%
59% increase in automated account openings
50%
50% reduction in manual review time

Elements needed to reduce manual reviews and increase auto-approvals

Prior to choosing Alloy as their Identity Risk Solution, Elements reviewed every customer application manually, and they were not able to verify information through multiple data sources simultaneously. Instead, the review teams would sign into each data source separately, key in the appropriate information, and then log the results.

Elements has a service-level agreement (SLA) with members, promising that their account will be open within one business day. However, when applications increased past a certain threshold — such as during a promotional campaign — their review teams struggled to meet the SLA. Elements also needed a solution that would not just decrease approval time but allow for auto-approvals and auto-declines when appropriate.

While tackling these challenges, mitigating fraud was also top of mind as they prepared to onboard more members. Ultimately, they started a search for third-party providers to solve for their challenges and chose Alloy.

Elements implemented Alloy to increase their flexibility and adaptability

With Alloy, Elements saves time and resources. Now, Elements can choose from Alloy’s 190+ data sources and incorporate those choices into a singular workflow that doesn't require separate log-ins or manual entry. This allows Elements to automate more of their decisioning processes.

Prior to implementation, Elements’ review teams used Alloy’s training portal, Learn Alloy Better (LAB), and attended training sessions to fully understand how different data source configurations would affect the workflow. Elements also conducted backtesting with months’ worth of prior applications to view projected outcomes and see how their manual decisioning compared to automated decisioning via Alloy. During backtesting, Elements identified several customized workflow modifications to ensure the results wouldn’t cause too many auto-approvals or denials.

LAB’s content is strong. We use the information to formulate our own internal best practices training at Elements, and I appreciate that it is so well put together.

Ashley Sellers - Digital Product Analyst at Elements Financial

In addition to the obvious benefits of automation, Elements appreciates that Alloy gives them the ability to modify their workflow on an as-needed basis so they can adjust for different member segments and financial offerings. Their teams can make these changes quickly and independently, so Elements has the agility to verify more thin-file applicants without increasing their risk.

Alloy has afforded us the flexibility to be nimble and to proactively apply quick changes to our digital onboarding workflow that respond to our members’ needs. By leveraging different flags and settings in Alloy, we’ve been able to identify potential good members who we might have otherwise declined. This gives us the opportunity to talk to them and offer them accounts. We’re operating at a more efficient level.

Amanda Arthur - Assistant Vice President of Product Management at Elements Financial

Higher auto-approval rates and stronger fraud prevention with Alloy

Now, Elements saw a 40% increase in auto-approval rate for new members. They also leverage the same decisioning for existing members who are adding new accounts.

Elements has also strengthened their fraud prevention efforts with Alloy. For example, when a suspicious increase in applications caught the review team's attention, they analyzed this influx at a faster rate and noticed certain trends.

Namely, they were able to identify that the fraudsters used the same IP address and similar phone numbers with only slight variations across multiple applications. There were also similar capitalization patterns among the personally identifiable information (PII). Because they were able to quickly identify these synthetic fraud applications, Elements did not have to switch back to a manual review process or affect their member experience. They could continue business as usual, knowing that the workflow they developed with Alloy would catch fraudulent applications that had received auto-approval before the fraudsters could withdraw funds.

Elements also sent more than 800 of the fraudulent applications to Alloy’s experts, who analyzed the fraudulent behavior and suggested workflow changes that would increase Elements’ ability to stop synthetic fraud while flagging fewer good customers. Their recommendations included adjusting existing data sources like Socure and adding new data sources like SentiLink. Again, Elements conducted a backtest to evaluate the results with SentiLink, and felt comfortable adding the new data source less than a month after the initial event occurred.

We value Alloy’s partnerships. Introducing additional data sources like SentiLink helps us weather the peaks and valleys of fraud and provides a far better experience for potential members. That's the pivotal piece for us. We measure our success by how quickly members can enroll in online banking and how high we can get our auto-approval rating. Alloy makes the process of moving funds into your new Elements account seamless and frictionless.

Amanda Arthur - Assistant Vice President of Product Management at Elements Financial

Looking ahead, Elements is excited to explore their future roadmap with Alloy. They are interested in Journeys — Alloy’s feature for multi-step application flows — so they can continue to decrease friction for members who are applying for multiple products.

We really want to leverage and take advantage of the many data sources we can access with Alloy. When we get feedback from our branch teams or our business development officers about pain points, we're always looking for solutions, and we have already found a number of those solutions with Alloy. What we like is that we can plug and play and make adjustments based on our teams’ needs.

Amanda Arthur - Assistant Vice President of Product Management at Elements Financial

Overall, Alloy gives Elements more time and freedom to focus on strategic initiatives, data-driven decisions, and a proactive approach to fraud prevention.

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