Automate your digital identity verification with Alloy

Online identity verification methods are increasingly difficult to automate as banks and fintechs try to balance regulatory compliance and fraud prevention measures with user experience:

  • On the one hand, strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations require more internal time and resources in order to achieve satisfactory compliance.

  • Meanwhile, fraud rates are continuing to increase as fraud tactics become more and more sophisticated.

  • At the same time, customer expectations are higher than ever, and achieving a frictionless onboarding experience is of the utmost importance when you want to grow and scale your business.

  • Also, incorporating more robust real-time identity verification checks into legacy systems can be a lengthy, expensive process — when what you really need is speed and agility.

Before you can seamlessly automate ID verification, there are often significant obstacles in the way that you need to overcome.

How can an Identity Risk Solution ease the burden of digital identity verification?

An Identity Risk Solution, like Alloy, is a complete end-to-end platform for managing identity, fraud, credit, and compliance risks throughout the entire customer lifecycle. Alloy helps you:

You will be able to confidently onboard more good customers, without adding unnecessary friction to the workflow or increasing manual reviews for your team — no coding or additional engineering resources required. Alloy also allows you to set the cadence of periodic ID verification checks, so you get compliant and stay compliant with AML and sanctions screening obligations.

Prioritize access to accurate, real-time data

Ultimately, the key to streamlining digital ID verification is data orchestration.

Alloy has pre-built integrations to 190+ data sources that you can customize to reduce the manual tasks associated with customer verification. Then, Alloy uses data orchestration to effectively integrate, process, analyze, and create a layered framework of data from all your chosen sources for a unified view of your customers’ behavior and the associated risks. As a result, you can accelerate application processing times.

Why is data orchestration so critical to the success of banks and fintechs?

Open up new customer segments

Alloy helps you connect to alternative data sources that provide adjacent complementary signals — like rent history, utility bill payments, or secondary income — to standard consortium and credit bureau data. Data orchestration integrates all the data from multiple sources smoothly and efficiently, improving the accuracy of your workflow’s digital identity verification. With data orchestration, you can verify a larger amount of customers quickly and compliantly, increasing the amount of choice in the market and providing better access to financial services overall.

Learn how the leading banks and fintechs are verifying thin-file applicants

Decrease friction with automated document verification

Automated document verification can be a key component of verifying identity. With Alloy, the validity of documents — such as ID cards, passports, or driver's licenses — are checked against multiple data sources to ensure the document’s legitimacy. Customers are spared the experience of uploading documents multiple times, physically mailing documents, or presenting them in person to confirm their identities. This expedites the onboarding process, enhances accuracy, and contributes to a seamless onboarding process.

When automated document verification is included in your workflow, you can onboard customers at a faster rate and increase your chances of spotting fraudulent activity at origination.

Can you use step-up verifications without disrupting the customer experience? (Yes.)

Customer identity verification supercharges your fraud prevention

Most banks and fintechs put transactions at the heart of their fraud prevention strategies. They look for atypical transactions and respond accordingly. However, only 50% of banks believe their organization is effective at managing identity decisions, even though they want to prioritize digital ID verification and address this challenge.

At Alloy, we believe that all fraud is identity fraud. When you focus on real-time identity verification, you can be proactive, as opposed to reactive. It’s much easier to stop fraud when you can spot a fraudster’s false identity during onboarding than when they have been approved and are in your system, ready to wreak havoc.

It’s not just about the customer who initially looks good on paper. You need to dig deeper and weigh the risk of whether they are likely to commit fraud in the future. Strong digital identity verification processes can help you pinpoint those instances during the onboarding process — before any fraudulent behavior occurs.

The age-old question for banks: To build or to buy?

Banks need to step up their customer verification processes and meet consumer expectations — even as fraudsters become more sophisticated. But, if you are restricted by the limitations of your legacy digital verification systems, how can you speed up onboarding processes? It might be time to consider outsourcing the solution to a third party.

Get a copy of Alloy’s ultimate build vs. buy guide for banks

How Novo uses Alloy to scale their digital identity verification needs

Novo is an online banking platform for small business owners. As a startup, they needed the ability to quickly and securely onboard more customers, while creating better operational efficiency. Through a single integration with Alloy, Novo was able to access all the necessary data sources for their digital identity verification processes — without losing hundreds of developer hours.

With Alloy, Novo has achieved the following:

  • 50% reduction in manual reviews

  • 68% of applications go through an automated decisioning process

  • 10 minutes (or less) required for new account openings

How can fintechs manage fraud mitigation amidst the rapidly changing landscape of digital verification?

You want to automate digital identity verification and comply with stringent regulatory requirements — while you safeguard against evolving fraud threats. And you need to do it quickly, with operational efficiency. It’s a daunting task, but outsourcing just might be the perfect solution.

Download Alloy’s build vs. buy guide for fintechs

How Brex uses Alloy for digital identity verification and instant account openings

Brex is a B2B financial provider that offers corporate credit cards with high spending power to startups and enterprise companies. As they were gearing up to launch their first card, Brex chose Alloy to stand up their KYC/AML processes and create a more efficient onboarding flow.

With Alloy, Brex has:

  • Automated 80%+ of new account openings

  • Required manual reviews for less than 2% of card applications

  • Served 1000s of customers

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