Effective, real-time fraud monitoring has become a key operational consideration, driven by the rising volume of digital transactions. It's important for financial institutions to have systems in place that can identify and flag potentially fraudulent activity without compromising the user experience.
Narmi Guard Transaction Monitoring integrates Narmi Banking with Alloy, a robust fraud prevention platform. This integration combines our comprehensive user data with Alloy's advanced risk rules. The primary function is to monitor transactions and automatically identify those that pose a high risk, helping you:
Mitigate ongoing fraud risks – Catch suspicious activity before it escalates.
Improve staff efficiency – Automate reviews and reduce manual workloads.
Safeguard the customer experience – Keep transactions flowing smoothly for your users.
The process for setting up Narmi Guard Transaction Monitoring for your institution involves multiple teams at Narmi. You have significant flexibility to customize Alloy Workflows to align with your specific risk management policies and operational needs. Please contact your Narmi Relationship Manager to get started.
About Alloy Workflows and Outcomes
An Alloy Workflow is a set of rules and logic on how to decision a transaction for a desired Outcome. The default rules established by Alloy can be customized by your institution.
An Alloy Outcome is the concrete decision that the Alloy platform delivers after assessing an identity or transaction based on its configured Workflows. The following predefined Outcomes are supported in Transaction Monitoring: Accepted, Review required (ACH and wires only), and Declined.
Alloy Outcome Reasons and Tags are crucial elements that provide granular detail and context behind pre-defined Outcomes. They help your institution understand why a particular decision was made and aid in further analysis, risk management, and compliance. Outcome Reasons are specific, often more detailed explanations for why a certain Outcome was reached. Examples of Outcome Reasons would be “Flagged terms” or “PII Change with Unverified Recipient Transaction.” Tags are specific conditions that were met within a Workflow. They are essentially flags that indicate something notable about the applicant or transaction, often contributing to the overall Outcome, but not necessarily being the sole reason. Examples of Tags would be a recent address change or an account that was opened less than 90 days ago.
Your institution defines the Outcome Reasons and Tags used for Transaction Monitoring, so we do not provide a set list of these. The recommended naming convention for Tags is "(i):" followed by a description, such as "(i): Verified Recipient." The recommended naming convention for Outcome Reasons is a rule number beginning with “R,” such as "R7:", followed by a description, such as "R7: PII Changes with Large Transactions."
For more information on Alloy, go to About Alloy.
How Transaction Monitoring Works
Once you enable Narmi Guard Transaction Monitoring in Narmi Banking, specific transaction types are automatically sent to Alloy for analysis. These include:
ACH transfers
ACH payments
Wire transactions
FedNow transactions (send only, not receive)
ACH transfers, ACH payments, and wire transactions are evaluated through your institution's customizable Workflow in Alloy, and the Outcomes are surfaced in Narmi Command: “Accepted,” “Review,” or “Declined.” This allows your staff to quickly approve or decline without having to open Alloy. Should a transaction warrant a closer look, staff can choose to "View in Alloy." This action provides a detailed assessment, including the user's full profile and risk level, giving staff the complete context needed to determine if a transaction is suspicious directly from Narmi Command. For details, go to ACH and Wire Transaction Monitoring.
FedNow send transactions are sent to Alloy after the payment is submitted. Transactions are sent to Alloy and the possible evaluation Outcomes are “Accepted” or “Declined.” Payments that pass transaction monitoring are Accepted and will be posted and sent via the FedNow service. Payments that do not pass transaction monitoring are Declined and will not be posted. Staff members can view declined" payments in Narmi Command and choose to override a declined payment, which will post the payment without sending it through transaction monitoring. For details, go to FedNow Transaction Monitoring.
Note: Your institution can set up FedNow Transaction Monitoring to ensure that all transactions are accepted, regardless of the Outcome. Please contact your Narmi Relationship Manager to set up this option.
Changes to Risk Manager
Once your institution enables Transaction Monitoring, it will apply to all payment rails you offer. Therefore, if you have ACH payments, ACH transfers, wires, and FedNow, the associated Risk Manager rules will be removed: ACH Transfers Rule, ACH Payments Rule, and Wire Rule. Staff users will not be able to select or set these rules through the Risk Manager if Alloy is enabled. The User Rule in Risk Manager will remain fully functional, regardless of whether Transaction Monitoring is available.
For information on how to use Risk Manager, go to Risk Manager.