Digital financial services solutions provider Q2 Holdings has teamed up with Alloy to provide a fraud monitoring solution for its digital banking customers.
This collaboration aims to tackle prevalent fraud risks such as account takeover and P2P payment fraud, facilitating business growth and reducing fraud losses for banks and credit unions.
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Alloy’s upcoming 2025 State of Fraud Benchmark Report revealed that one in three financial institutions suffered losses exceeding $1m due to fraud last year.
Alloy will be the centralised identity decision engine, integrating with Q2’s digital banking data and Q2 Innovation Studio.
This integration, along with Alloy’s data partner network, is designed to enhance fraud prevention for financial institutions, stated the company.
Alloy chief product officer Parilee Wang said: “We believe that successful fraud prevention starts with a holistic approach to understanding identity.
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By GlobalData“That means not just tracking the suspicious movement of money, but also separating out the identities of fraudsters from those of genuine customers. Our joint solution with Q2 brings together the various data sources financial institutions need to more clearly understand their customer so they can better reduce criminal activity throughout the customer lifecycle.”
The fraud monitoring tool is said to be the first to actively analyse user activity signals in conjunction with fraud signals from multiple third-party data sources. This allows for real-time interdiction of risky activities within the Q2 Digital Banking platform.
The solution will enable real-time risk assessments of digital banking user actions and ongoing monitoring, leveraging events in Q2 digital banking and third-party data vendors within Alloy’s decisioning platform, the company says.
The joint solution is also said to differentiate between genuine customers and potential fraudsters.
This balance ensures that legitimate users enjoy a seamless digital banking experience while introducing necessary checks for higher-risk activities.
Additionally, the centralised decisioning and case management is expected to boost operational efficiency for financial institutions.
Q2 fraudtech solutions VP Jeff Scott said: “Banks and credit unions need scalable fraud solutions to combat growing fraud threats while maintaining an engaging customer experience.
“Our partnership with Alloy will enhance existing native fraud monitoring capabilities within Q2 Digital Banking, providing a scalable, flexible, and identity-centric approach to fraud monitoring across digital channels. We are committed to continuously empowering our customers to help them fight against fraud and protect their account holders.”
