Why Alloy Is Going Global
Many businesses are rethinking their growth strategies in a world where the markets have completely turned.
Worldwide fraud, fines for poor execution of regulatory requirements, and the embedded finance boom have all risen.
The environment is giving B2B fintech companies a significant edge.
These changes spurred Alloy, which has built an identity operating system for banks and fintechs, to expand its platform to serve another 40 countries across North America, EMEA, LATAM, and APAC.
Going global is the latest move from the fintech company that raised $100 million at a $1.35 billion valuation in September 2021.
I caught up with Edwina Johnson, head of Global at Alloy, to get all the details about the expansion like:
– What were the challenges of expansion?
– What’s the future of Alloy’s team?
Let’s dive in.
More than 300 companies use Alloy’s API-based platform to connect to 150+ data sources.
With Alloy, fintechs and banks automate identity decisions during account origination and monitor them on an ongoing basis.
Over the past seven years, Alloy’s platform has helped companies grow and scale operations by allowing them to find more good customers and bring them into their products without increasing the risk of fraud.
Going global started by questioning the assumptions about the product and how it works in the U.S.
Just because something works in the States doesn’t mean it accounts for the nuances of other countries and local markets.
For example, something as simple as the slang language barrier between the U.S. and U.K. could mean the difference between a customer using your product or not.
Embedded finance is about demographics and geographics, significantly when expanding a platform worldwide.
You want customers of similar demographics to have the same experience no matter where they are. But you also have to make sure your product works for the local market’s needs.
As a company that enables fintechs and banks to pull in customer information, traditional credit bureau data, and other alternative data through a single integration point, remaining compliant with data privacy regulations across multiple countries is a significant lift.
Then, the interpretation of the regulation can differ from fintechs to banks.
It seems challenging, right?
Well, that’s part of the fun of expansion for Edwina.
Entering utterly new territory and all the levers needed to make it happen is the type of challenge that gets her out of bed in the morning.
That’s because if Alloy can continuously execute this new strategy, it will expand the financial product offerings in the market that are available to consumers or businesses.
So it gives them a more comprehensive choice generally.
It’s giving financial inclusion, but make it B2B.
Think of it like this: You would get a fuzzy image if someone could only use 25 data points to describe you.
But if someone could tell you in 1,000 data points, you would get a better picture of risk.
Moving forward, Edwina shared that Alloy is actively hiring in the U.K. as there’s a big focus on that market.