.png "Mastercard and Alloy partner to enhance fraud prevention, streamline customer onboarding, and reduce identity fraud for fintechs and banks using AI and open finance solutions.")
I am Aadi, an MBA with a focus on marketing and finance. I track fintech innovations and digital security trends and analyze how technology partnerships shape investment opportunities and operational efficiencies for financial institutions and startups.
Summary:
Fraud is skyrocketing in digital finance, and Mastercard with Alloy is stepping in to change the game. Their 2025 partnership brings together Mastercard’s global identity verification expertise and Alloy’s open finance account opening platform to streamline onboarding and enhance fraud protection.
- Provides consistent identity risk strategy across multiple channels.
- Integrates Mastercard verification tools within Alloy’s platform for faster deployment.
- Offers over 200 risk and identity tools to improve conversion and reduce manual reviews.
- Addresses rising fraud with 60 percent of institutions reporting increased incidents in 2024.
- Most institutions plan to boost investment in fraud prevention, 64 percent aiming for identity risk solutions.
If you think digital fraud is just a minor inconvenience think again. In 2024, more than half of financial institutions and fintechs reported increased fraudulent activity [Alloy].
Enter Mastercard and Alloy, whose partnership is designed to bring order to the chaos of digital onboarding. By combining Mastercard’s global identity verification capabilities with Alloy’s open finance-powered platform, they are offering banks and fintechs a way to protect themselves while making customer onboarding faster and simpler [PYMNTS].
The collaboration allows companies to implement a unified identity risk strategy across multiple channels. Instead of juggling different verification systems, institutions can deploy pre-configured Mastercard products directly through Alloy, reducing friction for both the user and the operations team [Biometric Update].
Alloy’s platform offers more than 200 risk and identity tools. These aren’t just checkboxes; they help improve conversion rates, cut down manual reviews, and ensure institutions maintain comprehensive coverage against fraud at every stage of the customer lifecycle.
Dennis Gamiello, Mastercard’s EVP and Global Head of Identity, emphasizes that strong fraud prevention protects both the financial institution and the consumer [Mastercard]. Parilee Wang, Alloy’s Chief Product Officer, adds that understanding identity in a holistic way is critical. Their partnership allows institutions to evaluate identities more accurately, reducing fraud risk while creating smoother digital experiences [The Paypers].
Beyond the joint solution, Mastercard leverages AI-driven systems to monitor millions of transactions in real-time. Their Decision Intelligence risk-scoring tool flags suspicious activity in milliseconds, enhancing both security and convenience [Business Insider]. Behavioral biometrics and AI models also detect fraud rings and first-party fraud, while Scam Protect identifies and blocks online scams [Mastercard].
Alloy’s end-to-end platform supports identity and fraud risk management by automating onboarding, ongoing monitoring, and credit underwriting. Financial institutions now have the tools to streamline operations while defending against increasingly sophisticated fraud schemes [Alloy].
This 2025 collaboration is more than a press release. It signals a shift in how fintechs and banks approach onboarding, combining AI, open finance, and digital identity tools to reduce fraud risk and enhance customer trust.
5 to Do's and Don’ts for Founders and Investors:
- Implement integrated fraud prevention systems for onboarding.
- Leverage AI-driven detection tools to reduce false positives.
- Skip staff training and awareness on fraud.
- Delay adoption of new fraud prevention technology.
- Underestimate the impact of fraud on reputation and trust.