Enigma and Alloy Team to Deliver Small Business Data to Banks

Enigma and Alloy have partnered to help financial institutions (FIs) better understand small businesses.

The collaboration adds Enigma’s intelligence about the financial health and identity of U.S. businesses to Alloy’s onboarding and transaction monitoring platform for banks and FinTechs, the companies said in a Tuesday (Feb. 7) press release.

“We’re creating a future where financial services are accessible for all, including the millions of small businesses that may fall outside the historic profile for what ‘creditworthy’ looks like,” Alloy Vice President of Strategic Alliances Brian Bender said in the release. “Our partnership with Enigma gives financial institutions access to the timely data they need to say ‘yes’ to more small businesses.”

With the data available through the Alloy platform — which includes Enigma’s data about 30 million small- to medium-sized businesses (SMBs) from hundreds of public and private sources as well as Alloy’s library of 170 rich data sources — FIs can better understand and serve SMBs, according to the release.

This helps banks and FinTechs automate identity decisions, monitor them and centralize credit decision workflows, the release said.

“Partnering with Alloy reflects our commitment to providing access to timely, accurate data about small and medium businesses,” Enigma Vice President of Product Charles Zhu said in the release. “Alloy’s customers will now have access to monthly revenues and other financial health data to fuel credit decisions, right in the platform.”

This partnership comes about five months after it was reported that Alloy had raised $52 million at a $1.55 billion valuation amid demand for ways to help FIs get more “good” clients and weed out the “dangerous” ones.

Fraud threats have become advanced over time, and there are now “skilled” manufacturers that are potentially going to use stolen and artificial identities to open accounts and transfer and steal cash.

The fraud explosion demands special attention to all forms of money movement, Alloy Chief Financial Officer Kiran Hebbar told PYMNTS in an interview posted in December.

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