Alloy, the recently named unicorn, has expanded its identity decisioning platform to include credit underwriting, with the intention of building comprehensive views of customers in line with their onboarding and transaction monitoring products.
Ahead of taking to the stage at Money 20/20 US in Las Vegas where the news will be formally announced, the New York-based startup revealed that their aim is to allow banks and fintech firms to make better identity, risk and now, credit decisions.
This news follows Alloy’s recent Series C funding round of $100 million led by Lightspeed Venture Partners. Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures also joined the round, which brought Alloy's valuation to $1.35 billion.
With credit underwriting’s chequered past of siloed processes and biased decisions, Alloy’s belief is that historically, a lack of data has meant that good applicants have been rejected and as a result, customer retention has decreased.
To remedy this issue, Alloy’s API allows financial institutions to collate customer information, credit bureau data and other alternative underwriting data such as cash flow data through a single point of integration.
This provides a more detailed picture of the applicant and banks and fintech firms can enable smarter risk decisions. Tommy Nicholas, CEO and co-founder of Alloy said: “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.”