As digital transformation continues to reshape the financial services landscape, the threat of fraud has surged, becoming more sophisticated and harder to detect. For banks and lenders, especially those dealing with complex small business lending, the stakes are high. Identity verification is no longer just a compliance measure—it’s a critical element in preventing costly fraud.
To help lenders stay ahead of these challenges, Numerated has partnered with Alloy, a leader in identity decisioning and fraud prevention technology. By combining Alloy’s real-time fraud prevention capabilities with Numerated’s AI-driven commercial lending platform, banks and financial institutions can make faster, more secure lending decisions while protecting their portfolios.
Fraud Challenges in Commercial Lending
Fraud is a persistent and growing issue in financial services, and the numbers speak for themselves. According to Alloy’s 2024 State of Fraud Benchmark Report, 85% of financial institutions reported an increase in fraud attempts in the past 12 months. As more lending moves online, fraudsters have targeted digital platforms, making it harder to distinguish legitimate applicants from bad actors.
For commercial lending, the challenge is even more complex. Verifying the identity of businesses, as opposed to individual consumers, involves additional layers of scrutiny. Fraudsters have become adept at exploiting loopholes in traditional verification methods, leading to higher losses and greater operational strain on bank compliance teams.
How Alloy Enhances Identity Decisioning
Alloy’s advanced technology plays a pivotal role in tackling these challenges by offering real-time identity verification and decisioning tools. Their platform leverages AI and machine learning to assess identity risks instantly, drawing from multiple data sources to create a holistic view of applicants. Alloy’s system is designed to reduce false positives—an essential feature in commercial lending, where a more nuanced understanding of risk is required.
In the 2024 State of Fraud Report, Alloy highlights that 59% of financial institutions now use automated identity verification systems, up from 45% just two years ago. This shift towards automation underscores the need for speed and accuracy, especially as financial institutions face rising pressure to streamline their lending processes while remaining vigilant against fraud.
By integrating Alloy’s identity decisioning technology into Numerated’s platform, we enable banks to approve business loans more efficiently and with greater confidence. This means not only faster decisions for customers but also a significant reduction in fraud risk across the board.
Streamlining Approvals and Reducing Risks for Financial Institutions
Fraud detection is often a manual, resource-intensive process for banks. Alloy’s automated identity verification drastically reduces this burden by flagging potential risks before they escalate. Numerated’s partnership with Alloy takes this a step further, ensuring that commercial loan approvals are not just faster but also safer.
According to Alloy’s report, 92% of institutions using automated identity verification reported a decrease in fraud incidents. For banks, this is a game changer—allowing them to approve more customers, expand their lending portfolios, and serve small businesses that may have previously fallen outside their risk appetite.
Together, Numerated and Alloy create a seamless process where identity verification and lending decisions happen in real-time, cutting down approval times while maintaining the highest levels of security. For small business borrowers, this means quicker access to the capital they need to grow, with less friction in the application process.
The Future of Fraud Prevention in Business Lending
The landscape of fraud prevention is evolving rapidly, and financial institutions need to stay ahead of emerging threats. Alloy’s AI-driven approach to identity decisioning, combined with Numerated’s automation in commercial lending, positions banks to not only react to current fraud trends but also anticipate and counter future risks.
To learn how Numerated can incorporate Alloy's best-in-class fraud detection into your commercial lending workflow, contact us.
