Alloy and Kyckr Streamline KYB Process for Banks and FinTechs

Alloy and Kyckr have partnered on a know your business (KYB) solution.

This collaboration adds Kyckr’s real-time KYB and Ultimate Beneficial Owner (UBO) data to Alloy’s platform that helps banks and FinTech companies make decisions around fraud, credit and compliance, the companies said in a Tuesday (March 21) press release.

“With fraud higher than ever before, finding a speedy but safe way to onboard business customers remains a challenge for many financial institutions, particularly as they look to service clients in multiple global markets,” Alloy Head of Global Edwina Johnson said in the release. “Integrating Kyckr into Alloy’s platform will help our clients provide a seamless digital onboarding experience to customers without increasing the risk of fraud, no matter where in the world they are located.”

PYMNTS research has found that proving and authenticating an organization’s digital identity is one of the biggest struggles for companies mitigating B2B payments fraud.

Forty-nine percent of firms said verifying new business customers’ identities is an important challenge they must address, and 16% of these firms said this is the most important challenge they face, according to “The New B2B Authentication Standard: The Shift Toward Automated Digital Identity Verification,” a PYMNTS and TreviPay collaboration.

Alloy’s application programming interface (API)-based platform helps companies connect to data sources, automate identity decisions, monitor them and make credit underwriting decisions, according to the press release.

This new integration will boost its ability to aid in the digital onboarding of companies outside the United States, the release said.

“Our partnership with Alloy means its customers can automatically validate the status of companies at the respective corporate register in real-time, helping avoid the significant regulatory and commercial risks associated with using poor quality data,” Kyckr CEO Ian Henderson said in the release.

Robust data flows gleaned from multiple sources mean that banks and FinTechs can make better decisions on whether applicants are good risks and “good actors,” Alloy Chief Financial Officer Kiran Hebbar told PYMNTS in an interview posted in December 2022.

That capability is especially important at a time when fraud has exploded and regulators are ramping up their scrutiny of financial services firms, Hebbar said at the time.

“What’s needed in this modern world is a holistic approach to solving fraud,” Hebbar said. “The old approaches don’t work anymore.”

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