Enables banks and fintech companies to transform credit policies into easy-to-use workflows, enabling smarter risk decisions
Alloy, the leading identity decisioning platform for banks and fintech companies, today announced the expansion of its Identity Decisioning Platform to include credit underwriting decisioning capabilities. Working in tandem with its Onboarding and Transaction Monitoring products to create a 360-degree view of each customer, Alloy Credit Underwriting enables financial institutions to make faster, smarter credit decisions. Alloy clients can use detailed identity data gathered during onboarding in combination with credit bureau data and alternative underwriting data to offer credit products to more people with less risk.
Credit underwriting has historically been a siloed process, creating challenges for banks and fintech companies to provide products in a fair, unbiased way. Good applicants are often rejected because of a lack of data and subsequently, manual reviews worsen the customer experience leading to drop-off. Since the credit score was introduced in 1989, there has been a lack of innovation in the way that credit limits are determined.
“It can be complex and challenging to get started with a new credit product, but Alloy made it easy by allowing us to translate complex policies into workflows for underwriting and risk functions,” said Andrei Cherny, CEO and co-founder of Aspiration. “As a result, we see automated credit decisions with a seamless application process, while still allowing easy drill downs into decisioning and optimizing the funnel further.”
Alloy supports access to a broad range of external and proprietary data sources so that banks and fintech companies can optimize their credit underwriting decisions. For example, if applicants have thin credit files, their credit score may not qualify them for a credit offering; however, looking at cash flow data might paint a clearer picture of their creditworthiness.
Alloy’s API allows financial institutions to pull in their customer information, credit bureau data, and other alternative underwriting data (such as cash flow data) through a single point of integration, providing a more detailed picture of the applicant. Clients can then transform their credit policies into configurable, flexible workflows, resulting in a more effective way to visualize and review an entire credit origination application for each customer, enabling smarter risk decisions.
“The launch of Credit Underwriting really showcases the strength of Alloy’s platform; combining the data gathered throughout the customer journey into one central location, creating a unique identity profile that can be used to offer customers a personalized experience and makes processes like underwriting less risky,” said Tommy Nicholas, CEO and co-founder of Alloy. “We’re just getting started in fulfilling our mission of helping financial companies deploy safe and seamless digital customer experiences.”
The new product expansion comes on the heels of significant growth for Alloy, recently raising a Series C funding round of $100M led by Lightspeed Venture Partners. The launch of Credit Underwriting is the next step to making a fintech company as easy to build as an ecommerce product – because risk is not something businesses should have to figure out, but rather something they should be able to install.
What originally began as a platform used to automate onboarding decisions has evolved to include new transaction monitoring capabilities, now processing more than 370,000 transactions daily for clients like Petal, HMBradley and Ramp. Credit Underwriting is a natural extension of Alloy’s technology as the company strives to become the command center for all things identity