UK-based fintech Sonovate has announced that it entered into a strategic agreement with Alloy to implement the latter’s identity risk solution to mitigate fraud while its operations expand. As part of their collaboration, Sonovate is set to leverage Alloy’s end-to-end identity risk management platform to combat evolving fraud trends in the UK.

Through its capabilities, Allow works towards solving identity risk issues for companies that provide financial products by allowing them to stay ahead of fraud and service more individuals globally. Currently, the company’s services are utilised by more than 600 banks and fintech firms in the US and the UK, among others, to assist the growth of their operations securely. The rise of fraud in the financial sector Considering the current environment, where fraud levels have been increasing steadily and criminals have been using more sophisticated tools to attack financial institutions, Sonovate partnered with Alloy to outpace these risks while also ensuring that genuine customers benefit from efficient access to the firm’s products and services.

When commenting on the announcement, representatives from Sonovate underlined that Alloy’s network of data sources enables their company to better safeguard its business and customers from financial crime and gives it the flexibility to adjust as needed as its operations expand. The agreement with Alloy comes shortly after Sonovate obtained a certification from Xero to augment reporting and reconciliation capabilities. Through it, the company was set to simplify financial management for customers, with the certification recognising its technology integration capabilities. Furthermore, officials from Alloy mentioned that their company plans to support Sonovate in its commitment to equipping recruitment and consultancy businesses with customised financial solutions.

While risk management has been a central part of Sonovate’s business, the collaboration with Alloy is set to continue to enable the company to evolve to address growing fraud threats. Before collaborating with Sonovate, more specifically in March 2024, Alloy launched a new risk management solution for Embedded Finance partnerships. The product was tailored to fit the needs, demands, and preferences of sponsor banks, Banking-as-a-Service (BaaS) providers, and fintech partners. By leveraging it, they were set to be able to collaboratively manage identity risk while meeting regulatory requirements.

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