Alkami Technology, a cloud-based digital services firm that has long provided fraud prevention solutions to banks and credit unions is expanding its fraud prevention solutions. Through the acquisition of ACH Alert, Alkami will be positioned to offer a unique set of ACH fraud prevention services to FIs (financial institutions).
ACH Alert was founded in 2008 and is based in Tennessee. The firm has nearly 20 employees. It has provided fraud prevention solutions directly to community banks and credit unions. In addition to ACH-related fraud prevention, its ACH Pro product helps eliminate flaws and inefficiencies in existing processes.
Some of the payment protection services provided by ACH Alert include:
- Check positive pay
- ACH debit blocks and filters
- Wire transfer protection and EDI translation
ACH Alert is built on two main products — PRO-TECH and PRO-CHEX. PRO-TECH is used with positive pay, which allows customers to receive ACH debit alerts and also confirm if they want a transaction to process or not. PRO-TECH CR is a similar service for ACH credits. The approval process in real-time and alerts customers before the transaction posts to their account. Additionally, the system lets customers filter on certain partners, eliminating the need for ACH blocks or other types of labor-intensive ACH filters. PRO-CHEX is a check positive pay service. Both PRO-TECH and PRO-CHEX reduce costs for FIs and further automate fraud prevention.
As Alkami currently works with many FIs, it will extend its platform, allowing FIs to more easily and seamlessly integrate features offered by ACH Alert. Additionally, these services will be cost-efficient. Alkami hopes that its additional offers will help FIs improve revenues through increased efficiency and automated fraud prevention.
Alkami Tech is one of Texas's largest fintechs by funding. The ACH Alert acquisition pushes its headcount to over 600. In September, Alkami raised $40 million, putting its overall funding at $400 million-plus.