Socure Unveils New Digital Identity Verification Solution Intelligent KYC

Photo by Alexander Vayionis from Pexels

Digital identity verification specialist Socure has introduced a new solution to help accelerate and scale customer acquisition. Intelligent KYC, launched last week, leverages advanced graph analytics, unsupervised machine learning, and a sizable volume of data sources to give businesses higher auto-approval rates compared to legacy identity verification systems, as well as fewer manual reviews.

“In the digital-first world, compliance teams need hyper-accuracy in their use of KYC tools without introducing more friction for customers or costly reviews for their operations teams,” Socure CEO Tom Thimot explained. “Intelligent KYC is the industry’s most sophisticated KYC solution and will push our clients far beyond check-box compliance.”

Available as both an individual solution as well as part of an end-to-end integrated, identity fraud engine, Intelligent KYC is especially suited for institutions serving underserved populations – from millennials with thin credit files to newly-arrived immigrants with no domestic credit record. Intelligent KYC leverages machine learning to access more than 310 million entities and three billion records from a wide variety of authoritative sources including credit header and inquiry, utility and telecommunications companies, and more.

Writing about the concept of Intelligent KYC on the Socure blog, privacy, data security, and fintech attorney and company advisor Annie C. Bai noted the emphasis that Socure’s solution places on precision accuracy in the initial phases of the KYC process. This accuracy, Bai explained, “is not only valuable for initial results but has downstream benefits as the cornerstone of understanding the customer.” Bai highlighted diversity in data, automated analytics, and user empowerment as three key differentiators between traditional legacy KYC and Socure’s latest offering.

“Socure’s market-leading identity fraud scores, (enable) an automated 90% customer acceptance rate, a 95% fraud capture rate, a 10% reduction in false positives, and over 50% reduction in manual reviews,” Bai wrote.

Founded in 2012 by Sunil Madhu, Socure most recently demonstrated its digital identity verification and fraud protection solution, Socure ID+, at FinovateFall in 2017. Recognized in March as one of America’s Best Startup Employers by Forbes, and named to Inc. Magazine’s Best Workplaces 2020 roster in May, Socure was also recently featured as a Gartner Cool Vendor in Artificial Intelligence for Banking and Investment Services.

Headquartered in New York City, Socure has raised nearly $62 million in funding from investors including ff Venture Capital, Scale Venture Partners, Commerce Ventures, and Flint Capital.

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Identity Verification Specialist Socure Raises $30 Million

Socure is the latest identity verification and fraud prevention innovator to attract the interest of – and big investment from – fintech’s venture capital community. The New York City-based company, which demonstrated its digital-to-physical identity verification platform at FinovateFall 2017, has scored $30 million in new funding in a round led by Scale Venture Partners.

“This funding will enable us to grow our footprint in new strategic U.S. market sectors that are in need of accurate, automated identity verification technology, including healthcare and the public sector,” Socure CEO Tom Thimot said. “We will invest in the talent required to continue innovating and expanding our machine learning-based predictive analytics platform.”

The round also featured participation from Commerce Ventures, Flint Capital, Two Sigma Ventures, Synchrony, and Sorenson Capital. The Series C round takes the company’s total funding to $57.5 million.

Socure’s platform leverages AI and machine learning techniques to analyze trusted on- and offline data from email, phone, IP, physical address, social media and the Internet, and provide real-time authentication. The technology helps drive financial inclusion, boosting acceptance rates for millennials and other thin-file applicants by as much as 40%. Socure’s platform also supports CIP/KYC programs and AML compliance, lowering fraud by up to 80% and cutting manual review costs by up to 90%.

“Companies from banks to insurance carriers to healthcare providers struggle with just how slow, expensive, and inaccurate today’s identity verification services can be,” Scale Venture Partners’ Rory O’Driscoll said. “Socure offers them better accuracy and fraud detection, delivered through an easy-to-implement API connection.”

O’Driscoll, who will join the company’s board of directors as part of the investment, called Socure’s technology “a compelling proposition (that) explains why this company has been so successful so fast.”

Socure finished 2018 with 3x gains in annual revenue and more than 100 deployments with leading banks, lenders, and payment providers. In a statement on the year’s accomplishments, the company highlighted the introduction of its Socure Sigma Fraud Scores risk metrics, the launch of its integrated document verification service, and the release of  version 3.0 of its ID+ platform.

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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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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.

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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.