Identity Risk Scoring from Socure Helps Radius Bank Reduce Online Fraud

A partnership between AI-powered identity risk scoring innovator Socure and workflow management specialist Alloy has enabled Radius Bank to decrease online fraud by 50%, increase new account conversions by 30%, and make manual review nearly a process of the past – reducing it by 95%.

The joint solution marries Socure’s predictive analytics with Alloy’s decisioning engine, and adds a variety of on- and offline data sources, predictive fraud tools, and a flexible rules engine to enable real-time decisioning and onboarding for new account openings.

Socure co-founder and SVP Johnny Ayers explained: “Given the extreme difficulty in fighting fraud while onboarding consumers digitally at scale, providing our customers with an end-to-end suite of predictive analytics, decisioning and case management capabilities means speed to market, unparalleled accuracy and technical flexibility that can’t be found when trying (to) work with legacy ‘identity proofing’ platforms.”

“Balancing fraud risk and customer friction are the two leading challenges facing financial institutions when it comes to digital account opening,” co-founder and CEO of Alloy Tommy Nicholas added. “The data and intelligence provided by Socure combined with Alloy’s decision engine and reporting tools make digital onboarding infinitely scalable for the first time.”

Radius Bank is a digitally-focused, community bank based in Boston, Massachusetts. Founded in 1987, Radius Bank offers check deposit, billpay, P2P payments, and card management for its personal clients, and provides advanced treasury management and loan payment solutions for business customers. In addition to Socure and Alloy, the bank has partnered with fintechs like LevelUp and Prosper to provide additional innovative services to its customers. Radius Bank has assets of more than $1 billion.

Headquartered in New York City, Socure demonstrated its Socure ID+ solution at FinovateFall 2017. The company’s digital-to-physical identity verification technology features an integrated document authentication service to determine the authenticity of government-issued identification and ensure a match with the PII provided. Socure’s platform provides best-of-breed email, phone, and address risk scores, overall identity risk prediction, KYC and physical document verification on a single, integrated solution.

Socure has raised $31.9 million in funding, and includes ff Venture Capital, Commerce Venture Partners, and Flint Capital among its investors. Sunil Madhu is CEO and President of the company, which was founded in 2012.

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  • Identity Risk Scoring from Socure Helps Radius Bank Reduce Online Fraud.
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Socure Unveils Digital Identity Bot Aida

 

Socure, a New York-based company that provides predictive analytics for digital identity verification, has launched a new solution this week. Aida (Authentic Identity Agent) is a new identity verification bot that can be deployed to validate authenticity in online transactions. Aida is named after the world’s first computer scientist, Ada Lovelace, and leverages AI to process billions of on- and offline datapoints to provide real-time digital identification.

“Socure is solving the single most difficult problem in identity verification,” Socure’s founder and chief strategy officer Sunil Madhu said, “validating a person that’s never done business with an organization before.” Criticizing traditional methods of verifying identity in the digital world as “a miserable failure,” Madhu praised both Aida’s speed and accuracy.

“Aida can assess in real-time and with unprecedented levels of reliability, whether a digital identity is authentic, synthetic, or has been stolen by performing beyond-human analysis at machine speed,” he explained. “Aida essentially lives every minute of every day to verify identities and fight fraud.”

Socure founder and Chief Strategy Officer Sunil Madhu demonstrating the Socure ID+ platform at FinovateFall 2017.

Part of the company Socure ID+ identity verification platform, Aida combines AI, unsupervised machine learning, and clustering algorithms to provide a continuous loop of data ingestion, normalization, and evaluation from sources such as credit bureaus, social networks, and email history. Aida automatically builds explainable, transparent machine learning models in hours, and conducts predictive analytics on real-time transactions to determine which should be accepted automatically and which should be flagged for manual review by a human fraud analyst.

Named to Red Herring’s Top 100 in North America earlier this month, Socure announced in June that two of the top five U.S. banks (and three of the top ten) are using its technology. This spring, the company appointed Tom Thimot as its new CEO, with Socure founder and former CEO Madhu transitioning to the Chief Strategy Officer role.

Founded in 2012, Socure demonstrated its verification platform at FinovateFall 2017 last year. The company has raised nearly $32 million in funding, and includes Commerce Ventures, Flint Capital, and ff Venture Capital among its investors.

Finovate Alumni News

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  • Socure Unveils Digital Identity Bot Aida.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Socure Appoints New CEO Tom Thimot

Socure, a provider of predictive analytics for digital identity verification has appointed Tom Thimot as its new CEO. Thimot takes the helm from company founder and original CEO Sunil Madhu.

Madhu, who will take a new role as Chief Strategy Officer focused on platform innovation and exploring new market opportunities, pointed to his experience working with Thimot in the past and expressed his excitement at teaming up again. “Tom and I worked together at Netegrity to grow the identity and access management business many years ago,” he said. “I’m thrilled to work with him again at Socure and glad to pass the baton so he can help us accelerate the next phase of our growth as a pioneer of trust in digital identity.”

Thimot (pictured) comes to Socure from Clarity Insights, a big data consultancy. Before this, Thimot was COO of Kazeon, which was acquired by EMC, CEO of GoRemote (acquired by IPass), an EVP at Netegrity (acquired by Computer Associates) and CEO of CaseCentral (acquired by Guidance Software). He has a BSME in Mechanical Engineering from Marquette University and also attended Harvard Business School.

“The market opportunity and applications for Socure’s technology span a wide range of industries,” Thimot said. “We are in the right place at the right time. I look forward to further accelerating our expansion, while maintaining Socure’s focus on customer satisfaction and innovation.”

Socure demonstrated the first-ever digital-to-physical identity verification platform at FinovateFall 2017. The company extended its digital identity verification solution to include an integrated document authentication feature that enables authentication of government-issued IDs and cross-checks with personally-identifiable information. Socure’s ID+ platform reduces fraud by up to 90 percent, according to the company, lowers manual review and knowledge-based authentication rates by up to 80 percent, and automates Customer Identification Program (CIP), KYC, and AML compliance activity.

PYMNTS.com sat down with Madhu earlier this month to discuss Facebook’s issues with user data. The company was named one of the Top AI Companies in the world by CB Insights last December and was highlighted last August as one of the Finovate alums that has been a top investment target for European banks. Founded in 2012, Socure is based in New York City.

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