Alloy, a leading identity and fraud prevention platform provider, has launched a pKYC solution enhanced by AI insights.
The company, which works with global banks, FinTechs, and payments firms, helps clients automate compliance processes, increase conversions, and scale internationally while preventing financial crime.
The launch comes as financial institutions face growing challenges in meeting evolving regulatory requirements, particularly around customer due diligence and ongoing monitoring. Traditional methods of relying on periodic KYC checks have created gaps in risk visibility, prompting the need for continuous and adaptive compliance tools.
Alloy provides identity decisioning technology that enables financial institutions to streamline onboarding, automate fraud checks, and manage compliance obligations across multiple markets. Its platform is already used by firms including Flagstone, IG Group, and Liberis, supporting them as they expand into new geographies.
The new pKYC product aims to raise industry standards by combining scheduled refreshes with real-time responsiveness to third-party and first-party data. At its core is a dynamic customer risk assessment that can be re-run whenever suspicious activity or changes in personally identifiable information are detected. This system ensures that compliance teams can identify risks more effectively and respond without delay.
To strengthen its offering, Alloy has partnered with AI providers Parcha and Greenlite to automate and accelerate financial compliance tasks such as customer reviews. The pKYC solution is designed to boost straight-through processing rates, reduce friction for genuine clients, and protect institutions from financial crime at scale.
Additional features include electronic ID (eID) verification, which allows institutions to meet emerging EU requirements for digital identity wallets. By integrating eID into KYC workflows, Alloy clients can simplify customer authentication, improve conversion rates, and unlock access to new global markets.
Alloy’s own research highlights the urgency of these solutions. Its 2025 State of UK Fraud Report revealed that 93% of UK FinTech leaders consider regulatory penalties and reputational damage the most pressing risks associated with fraud. With regulators in the UK, Europe, and beyond increasingly mandating dynamic, lifecycle-wide KYC checks, financial institutions face pressure to adopt more advanced compliance frameworks.
Flagstone chief compliance & risk officer Francesco Fulcoli said, “Across the industry, the fight against financial crime is shifting from periodic checks to continuous intelligence. Static, point-in-time KYC is giving way to dynamic monitoring, where customer behaviour is analysed in real time, and risk assessments evolve automatically. At Flagstone, we see AI and technology as the catalyst for this change: enabling financial institutions to detect anomalies earlier, respond faster, and reduce friction for genuine clients. This is the direction of travel for the market, smarter AML compliance that is always on, adaptive, and customer-centric.”
Alloy VP, global fintech and sponsor banking Jason Ioannides said, “For fintechs operating in Europe, meeting ambitious growth goals while staying compliant across multiple markets is a daily challenge. Implementing dynamic pKYC ensures that institutions aren’t just assessing risk at onboarding but also continuously throughout the customer lifecycle.”
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