Alloy

Tyler Brown of CCG Catalyst dove into some of the findings from our State of Embedded Finance Report: "as Parilee Edison Wang, chief product officer at Alloy, reiterated in an interview with CCG Catalyst, there’s a balance sponsor banks need to strike between responsible growth and innovation." ?? https://lnkd.in/gqtdWtxJ

Writing for CUSO Magazine, Alloy Fraud and Identity Risk Principal Advisor Sara Seguin delves into the dangers of account takeover fraud and explains how credit unions can better address it. ???♀? "To prevent account takeover fraud, credit unions need to develop a better understanding of their members before any funds leave their accounts. This requires a shift in strategy: from tracking fraudulent activity through transaction monitoring to concentrating on identity, which allows for a more proactive and holistic risk assessment using fraud indicators that emerge much earlier." https://lnkd.in/d9-VTg_J

From regulatory scrutiny to reputation risks — are banks truly ready to embrace the promise & potential of embedded finance? ?? This morning, I had the privilege of delivering the keynote at Alloy's Banking Summit in Chicago, where I shared my takes on the consistently changing business of banking. As financial institutions navigate the complexities of Banking-as-a-Service and #embeddedfinance, they face both immense challenges and exciting opportunities. I covered the critical risks banks must address — from compliance hurdles to potential disintermediation —?while also highlighting the enormous potential for growth and creativity. A few data points: ??♂? #Compliance remains a major hurdle. Case-in-point, Alloy’s recent research shows 4 in 10 sponsor banks lost over $250K due to compliance violations, with 80% struggling to manage regulatory complexities. ???? #BaaS platforms continue to play a critical role. Despite a decline in partnerships, 40% of sponsor banks still collaborate with fintechs via BaaS platforms, which remain vital to the tech ecosystem. ?? #Partnerships are being reevaluated: 30% of sponsor banks are reconsidering their embedded finance strategies, with some looking to scale back or exit programs. My Cornerstone Advisors colleague Ron Shevlin recently emphasized the distinction between trimming and fully exiting partnerships... a point I attributed to him (along with one of the slides I'm sure he'll ??) Many sub-$10 billion banks are finding it difficult to balance compliance, operations + technology, while larger banks are expanding in the BaaS space — Stripe’s move from Evolve Bank & Trust to Fifth Third Bank being a recent example. These trends signal a shift toward more strategic, compliant and resource-efficient models as the banking and #fintech sectors continue to evolve ?? **A big thank you to Tommy Nicholas, Laura Spiekerman, Kiran Hebbar, Keith Kettell, Kathryn Cook and the #Alloy team for hosting everyone, with special shout outs to Kelly Mayes and Drew Simmons. Starting it off with last night’s White Sox game = the perfect beginning to today's main event! #GrowingSmart #PluggedIn?

Yesterday, around 100 leaders joined us for our Chicago Banking Summit to network and connect with each other while sharing insights and learnings. There were a few key themes that came up consistently, including: ?? Smart growth: from heads of digital banking to heads of risk/fraud. While those seem in opposition to what we hear so often, there are ways that both groups are finding the balance of enabling growth while managing risk. ?? The pervasiveness of fraud across channels: fraud was a key topic of conversation throughout the day as leaders shared the unique ways that bad actors are finding their way into FIs. There were also insights into the ways that news tools, policies and organizational alignment can help keep growth channels open, while reducing fraud risk. ?? AI: there was widespread agreement that AI isn’t the silver bullet to fraud prevention that some companies are promising. But the use of AI from bad actors isn’t going away and so conversations centered around the ways banks can respond. A huge thank you to all of our speakers including Al Dominick, Andrew Altsman, Kimberly Sutherland, Aaron Steinitz, Nicole Allen, and Miguel Navarro. And hope to see you at the next one!

With Alloy, Monzo Bank can conduct specific checks on different customers based on their potential risk level. Kudos to the Monzo team for finding the difficult balance of providing their customers with the best possible user experience while also staying ahead of fraud risk! ?? "Alloy allowed us to configure a set of rules to bucket users into low-risk, medium-risk, and high-risk groups. Rules that were too strict would put too many people in the medium and high-risk buckets, so it took our team a few weeks of fine-tuning to get the ratios right. Armed with a set of rules to bucket new signups based on risk level, we extended our signup flow to check a new user against Alloy; if they landed in the low-risk bucket, we allowed them to skip the check causing 40% drop-off in our funnel, and everyone else would have to submit that check as before. That way, we could let our best customers get the smoothest experience while keeping risky customers out at the front door." https://lnkd.in/eFKFTni2

What a fun adventure to work with Laura Spiekerman and the Alloy team on their Risky Business series!

When it boils down to it, the effectiveness of a bank's fraud prevention strategy depends on having a solid foundation of authentication, data quality and predictive modeling. Learn more about how AI can fit into banks’ risk strategy in this deep dive from Tommy Nicholas with American Banker. https://lnkd.in/exAnGyXU

At Alloy, we help over 600 of the world's top banks, credit unions, and fintechs solve the identity risk problem. ?? If that sounds like a cause you can get behind, consider applying for one of our open roles! https://lnkd.in/dK6tB2yf This week's spotlight: we're hiring a Senior Enterprise Technical Account Manager! This role will be part of a brand new team that highlights Alloy's current growth and scale mode. ?? You'll also be working with Alloy's largest and most well-known clients with the opportunity to drive massive and immediate impact. ?? Check out the full job description and apply today ?? https://lnkd.in/dXm3yn4z

In our world of tech disruption, some traditional banks aren't just surviving —? they are gearing up for real growth. One key to their success ? #EmbeddedFinance Next Tuesday morning, at Alloy's Banking Summit in Chicago, I’ll be diving into this topic (along with a few others), thanks to an invitation from Kelly Mayes and their fantastic team. Alloy helps solve identity risk problems for #banks and #fintechs, so their events bring together true experts in fraud prevention and digital banking... an audience I am excited to to join on Monday evening and present to the following morning ?? Heading to Chicago? Drop me a line, as it will be great to connect in-person.

Sponsor banks rank reputational damage as top consequence of mishandling fintech compliance, Alloy survey shows. https://bit.ly/3yFCgvH