Modulr taps Alloy for compliance hub as it expands

Modulr has selected Alloy as a component of its Risk & Compliance Hub. The agreement covers onboarding and compliance checks across Modulr's international customer base.

The UK fintech will use Alloy to run Know Your Customer and Know Your Business checks through a single decisioning layer as it expands into new markets. The setup is intended to simplify onboarding while strengthening controls around risk, compliance and financial crime.

Risk hub

Modulr's Risk & Compliance Hub brings together tools and infrastructure used across the customer lifecycle. It is designed to support customer protection, onboarding and fraud prevention as the business grows internationally.

Under the partnership, Alloy will consolidate data from verification and intelligence providers into a single workflow. This will allow Modulr to assess customer and business risk, move lower-risk applications through the process more quickly and refer higher-risk cases for deeper human review.

The deal reflects pressure on fintechs and payments groups to balance faster customer onboarding with stricter compliance demands. Companies expanding across borders often face different regulatory requirements and must tailor their checks by market without adding too much operational complexity.

Compliance push

The technology will allow Modulr to adapt policies by jurisdiction and add new data sources as needed. It also includes unified case management and an audit trail for compliance oversight.

Founded as a payments automation provider, Modulr handles money movement for payroll, supplier payments, lending and travel. It says it processes more than 200 million transactions and more than GBP £180 billion in annualised payment value, serving more than 6,000 businesses.

The partnership also extends Alloy's reach in the UK and European fintech market, where demand for automated identity verification and fraud controls has grown as firms seek to reduce manual checks. Alloy says more than 800 financial organisations use its platform globally.

Ben Taylor, Chief Operating Officer, Modulr, outlined the company's rationale for the move.

"At Modulr, we're building a Risk & Compliance Hub that can stand up to the pace of change in financial crime and regulation, whilst also allowing us to give an improved onboarding experience to our scaling customers," said Ben Taylor, Chief Operating Officer, Modulr. "Alloy helps us remove unnecessary friction from onboarding while keeping our teams firmly in control of the decisions that matter. That combination of speed, safety and control is critical for us to keep pace with this fast-evolving threat environment as we continue to grow."

Market expansion

For Alloy, the agreement adds a client expanding across several markets and seeking to standardise customer due diligence. Modulr will use its no-code risk assessment tools, software development kit and partner network as part of that process.

Parilee Wang, Chief Operating Officer and Chief Product Officer, Alloy, said the two groups shared a focus on balancing onboarding with compliance.

"Alloy and Modulr are focused on delivering a streamlined, low-friction onboarding experience without compromising on compliance rigour," said Parilee Wang, Chief Operating Officer and Chief Product Officer, Alloy. "Modulr will leverage Alloy's no-code risk assessment capabilities, SDK and network of partners to deliver positive customer experiences and ultimately growth across the business' different markets."