Alloy, a leading identity and fraud prevention platform provider, announced today that its solution for Sponsor Banks, Alloy for Embedded Finance, was named Best Know Your Customer/Business (KYC/KYB) innovation by Datos Insights as part of its 2025 Fraud & AML Impact Awards.
“Embedded finance presents a massive growth opportunity for both financial institutions and fintechs, but it’s also an area where regulatory expectations are constantly evolving,” said Jason Ioannides, Vice President, Global Fintech & Sponsor Banking at Alloy. “Alloy for Embedded Finance allows our clients to automate the fraud and compliance piece of bank/fintech partnerships so that they can focus on driving business growth.”
Alloy for Embedded Finance enables Sponsor Banks like Grasshopper Bank to enforce compliance and risk controls at scale across their partner portfolios on a fully auditable platform, while enabling fintechs to build on those requirements to create better customer experiences. The product leverages the strength of Alloy’s platform and includes a parent/child account configuration. Sponsor banks (or ‘parent accounts’) have the ability to designate different levels of autonomy and guardrails for each of their fintech partners (or ‘child accounts’), depending on how mature the fintech is, how much of the process the fintech wishes to own, and the risk appetites of both parties. Alloy for Embedded Finance was recognized due to the customizability of policies per fintech it enables, its scalability for growing fintech partner portfolios, and its unified platform to manage compliance across the portfolio.
“As the embedded finance sector continues to expand, the regulatory scrutiny and compliance challenges facing sponsor banks have intensified,” said Chuck Subrt, Research Director, Fraud & AML Practice at Datos Insights. “By offering flexible control mechanisms that can accommodate different partnership models and risk tolerances, Alloy for Embedded Finance provides a scalable solution that can grow with institutions’ needs. It enables banks to create a unified compliance framework that can scale across multiple partnerships and accommodate different risk tolerances and business models.”
Datos Insights is the leading research and advisory partner to the banking, insurance, and securities industries—both the financial services firms and the technology providers who serve them. The Datos Insights Impact Awards are designed to recognize and celebrate innovation achieved by financial institutions and insurers globally, and to share across the industries what the best business impact looks like now.
