Alloy

Such an inspiring day last week at Alloy's annual hackathon and having the chance to judge alongside Charley Ma and Kathryn Cook. The company has grown a ton since we at Bessemer Venture Partners first invested, but the serious innovation (and laughs) continue! The team is cooking up some incredible stuff to help their customers stay a few steps ahead of those fraudsters. Check out their open roles here: https://lnkd.in/eYSMVUds

When it comes to embedded finance, sponsor banks have a wide variety of partnerships. For example, it’s not unusual for a sponsor bank to partner with both a fintech offering custom business debit cards and a non-financial end-brand — like an insurance company offering high-yield savings accounts. But how does the sponsor bank account for the distinct fraud vulnerabilities of these channels and set baseline fraud prevention requirements that suit both relationships’ needs, different as they may be? 🤔 Alloy for Embedded Finance has launched. And it just might be the answer. 🚀 https://lnkd.in/eNMgc3r2

What are the key differences between fraud prevention and regulatory compliance during customer onboarding? Join me each day next week as I share highlights from my conversation with Tommy Nicholas, CEO of Alloy, exploring compliance, fraud prevention, and risk appetite. Eager to see the rest of the highlights? Check out our Video Series: Understanding Customer Onboarding with Tommy Nicholas from Alloy and Natasha Vernier from Cable (link in comments). #Fintech #Banking #Regulations #fintechinsights #fraudprevention #FutureOfFintech

Last week, 18 teams across Alloy presented their projects for our sixth annual company hackathon, Gumption Days! Over the past several years, many of our best products have started as hackathon projects, including what-if analysis, new account setup, and Alloy for Embedded Finance (https://lnkd.in/efYzgJfe.) This year, our teams spent the week building projects to drive value and increase efficiency, productivity and better experiences for both our customers and internal teams. From tools that will help clients streamline fraud prevention workflows, to enhancements to Alloy’s product release process, to AI assistants to help employees better access internal company knowledge, our teams really brought the fire 🔥 this year. Congratulations to this year’s winners and a massive thank you to our judges: Charles Birnbaum, Kathryn Cook, and Charley Ma; and to everyone at Alloy who participated and innovated this week during Gumption Days 2024!

Long before the bank failures of 2008, 14th-century Florentine bankers witnessed economic disaster. 📉 In the 1300s, King Edward III of England borrowed 1.5 million gold florins from the Bardi and the Peruzzi banking families. But, in a catastrophic example of what could arguably be considered a form of early bust-out fraud, Edward III never repaid his debts. The result was the downfall of both family banks — and what some historians consider to be the worst financial collapse in history. The story of banking’s evolution is also about the evolution of risk management. Our latest blog post explores how banking strategies informed by fraud risk have brought about major economic changes throughout history: from the shift away from paper currency in 1455 China to the present-day adoption of omnichannel fraud prevention strategies. Check it out.👇🏦⚔️ https://lnkd.in/eymNZFK5 #BankingEvolution #BankingHistory 

According to the Federal Reserve, synthetic identity fraud is the fastest-growing financial crime in the U.S. As a bank, credit union, or fintech navigating this landscape, implementing advanced fraud detection measures is crucial. A well-designed identity risk management system should include synthetic-specific fraud modules, behavioral analytics, and machine learning models designed to spot synthetic identities at onboarding. Protect your institution from potential losses, enhance risk decisioning, and drive growth with Alloy. We’ll help you stop synthetic identity fraud at origination, and monitor risk throughout the customer lifecycle. https://lnkd.in/eA8QJ7A7

Check fraud is a growing concern in the US. But in the UK? Not so much. In fact, it did not even register as a common type of fraud for UK respondents in Alloy’s Annual State of Fraud Benchmark Report. What is responsible for this stark contrast between the two countries? Two key factors: Faster adoption of digital payment methods, which led to an overall shift in the cultural attitude towards paper checks. https://lnkd.in/e6hieDpT

AI is making sophisticated fraud attacks even easier for fraudsters, so passkeys are becoming a more useful tool in the fight against fraud. Passkeys can: ✅ Improve the customer experience ✅ Better protect customers from data breaches ✅ Provide better safeguards against social engineering and credential-stuffing attacks But it’s still important to implement passkeys correctly and pay attention to all the ways they are still susceptible to certain types of fraud. #identityandaccessmanagement https://lnkd.in/e4rQqDdy

Sponsor banks face a fraud dilemma when it comes to embedded finance. 🧐 Are they taking the fraud risk into proper account? 🤔 How much oversight should they maintain over their partnerships’ fraud prevention strategies? 🤨 Can they have more control without creating customer friction? 😶 And how do they implement a solution that sufficiently aligns with the needs of different end-brands? Not to brag, but Alloy has a new way to help. 😉 https://lnkd.in/eNMgc3r2

Keeping up with the ever-evolving tactics of fraudsters is practically a full-time job these days. Dive into the latest headlines from Sara Seguin, Frank McKenna, Satish Lalchand Val Srinivas Brendan Maggiore and Kyle Brasseur to stay one step ahead in the battle against bad actors.