Alchemy Partners with Plaid to Enhance Loan Decisioning and Fraud Detection Capabilities
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Alchemy Technologies (“Alchemy”) a leading fintech infrastructure development company based in Utah enters into a partnership agreement with Plaid, a data network powering the fintech tools that millions of consumers have come to rely on to improve their financial lives.
Alchemy, one of the leading SaaS fintech lending infrastructure companies, has partnered with Plaid to support businesses in account and asset verification for improved lending decisioning. Alchemy has developed algorithms and detection tools to help its clients to examine the applicant’s financial picture. These algorithms also protect consumers from taking out redundant and costly loan products. Alchemy clients will have access to Plaid’s suite of APIs providing clean transaction, identity, and income data to build more responsible lending products and support the next wave of core lending solutions.
“Plaid has been one of the foundation blocks of today’s fintech evolution and with our new partnership, we’ll advance our work to support the greater financial services community,” said Timothy Li, Founder, Alchemy Technologies. “Alchemy constantly deploys new, innovative products to the marketplace. By leveraging banking transactional data to accurately detect personal income and stacking behaviors, we equip our clients to avoid credit risk and offer more affordable products to their clients.”
A focus area of Alchemy and Plaid’s work together is supporting innovative lending solutions aimed at the student debt crisis.
“Student debt is one of the largest issues facing the US economy, with debt climbing to $1.6 trillion this past year” said Lowell Putnam, Head of Partnerships at Plaid.
“Despite the number of people struggling with their student loans, there have not yet been many fintech solutions that help borrowers navigate repayment and management. With more innovation in core lending technology, better solutions for borrowers and future applicants will flourish.”
One such company is Meratas Inc., who provides merit-based financing in the form of Income Share Agreements (or ISAs). With an ISA, the student receives educational funding in exchange for repayments indexed to the student’s future income. Meratas recently partnered with Alchemy to create a custom developed ISA platform leveraging Plaid Assets and Auth to qualify students in real time.
“American students are in desperate need of innovative financing solutions for higher education. At Meratas, we finance educational programs using Income Share Agreements, which are proven to de-risk and democratize access to higher learning,” said Meratas CEO, Darius Goldman.
“Through our partnership with Alchemy Technologies and our use of Plaid’s authentication and assets solutions, we’re able to scale our ISA programs infinitely while maintaining meaningful quality standards that are not reliant on traditional factors such as credit score. Instead, we rightfully place our emphasis on the student’s potential. With better data management and better underwriting, we’re able to focus on the student’s future, not their past.”
About Alchemy Technologies
Alchemy Technologies is industry-first lending as a service company offering out of the box technology, algorithms and servicing to launch FinTech products for FinTech startups, specialty financing companies and Banks alike. Our vertical workflow specializes in Student Lending and Home Improvement spaces. Our technology offering includes website / mobile app, loan origination system, decision engine, loan management system, payment gateways, and secondary market access. Follow us on LinkedIn and Twitter.