In this episode of FinTech Confidential, Tedd Huff and Colton Pond chat with Jonathan Awad, co-founder and CEO of Baselayer. They cover some pretty interesting topics around identity verification and fraud prevention for businesses, especially small and medium-sized ones. The conversation is packed with useful insights into how financial institutions are dealing with these challenges, and how new tech is changing the game for everyone involved.

The main focus of the discussion is about making business identity verification smoother and faster. Financial institutions are constantly trying to figure out how to trust the businesses they work with. Traditionally, this process has been slow, complicated, and full of risks. Nowadays, technology helps solve these problems by verifying business identities in real-time. The result is a more secure onboarding process, which cuts down on fraud and makes it easier for businesses to prove who they are.

What’s really cool is that it doesn’t stop at just checking identities. Companies now have tools that can keep an eye on businesses long after they’ve been verified. Instead of just doing a one-time check, financial institutions get real-time updates if something about a business changes. So if a new risk pops up or fraud becomes more likely, they’re alerted immediately. This continuous monitoring is a big win for risk management, helping financial institutions stay ahead of any potential issues.

Another important takeaway from the episode is how AI is used. There’s a lot of talk about AI in the world of fintech, but the key here is that it’s not about the technology itself—it’s about what it can do. AI makes fraud detection faster and more reliable, but what really matters is that it helps solve problems in a practical way. The conversation makes it clear that financial institutions are less interested in how fancy the tech is and more interested in whether it works efficiently. And it does—by preventing fraud and helping businesses stay compliant with regulations.

The episode also touches on what it takes to secure funding and build a successful fintech company. There’s a lot of emphasis on having a strong team and a clear vision. Investors want to see that the company can actually deliver results, and that the team behind it knows what they’re doing. This is especially important in fintech, where the stakes are high and customers expect things to work flawlessly. It’s not enough to just have a good idea—you need to prove that it can succeed in the real world.

One of the more eye-opening parts of the episode is about the future of managing identities. The idea of controlling your identity through apps is something that could make things a lot easier for everyone, from individuals to large companies. While it’s still in the early stages, the potential is clear. If done right, it could make identity verification quicker and more secure, leading to better financial access for more people.

Toward the end, they discuss some up-and-coming companies that are also making waves in fintech. There’s mention of Not K, Solo, and LoanPro—companies that are tackling big problems like fraud prevention and business lending. These are the types of companies that could really change how the financial industry operates in the future.

All in all, this episode is filled with useful information for anyone interested in fintech or business risk management. The focus is on how technology is helping solve real-world problems like fraud and compliance, and the tips on building a strong team and securing funding are especially helpful for anyone looking to break into the space. It’s definitely worth a listen if you want to understand where the industry is headed and how these challenges are being tackled with new tools and strategies.

Key Highlights

 

The Secret to Fraud Prevention Nobody Talks About

In this episode, you’ll learn how real-time data monitoring can help financial institutions stay ahead of fraudsters. Instead of waiting for fraud to happen, companies now have tools that keep constant track of business activities. This helps them get alerted immediately when something looks off, saving both time and money.

Why AI Isn’t the Hero of This Story

We’ve all heard about AI, but it’s not the focus here. What matters is how it’s used to solve problems. You’ll find out how AI works behind the scenes to speed up fraud detection and make identity verification smoother, without it being just a flashy headline.

How to Win Over Investors with a Solid Team

One of the biggest takeaways is that investors care more about the team behind a product than just the product itself. Learn how having the right people in place is key to securing funding, and why investors need to believe in the team’s ability to deliver results.

The Future of Identity Verification—What’s Next?

Controlling your identity through apps could soon become the norm. This segment explores how the future of identity management is changing and what it means for businesses and individuals alike. The possibilities are exciting, especially when it comes to improving security and access.

Ongoing Monitoring: The Fraud Prevention Tool You Didn’t Know You Needed

Why stop at verifying a business once? With ongoing monitoring, financial institutions get updates anytime something changes, helping them stay on top of new risks. This clip explains how this constant watch is a game-changer in risk management.

Stop Pitching AI—Start Solving Problems

Too many companies make a big deal out of using AI. But what really matters is solving the customer’s problem. In this episode, you’ll hear how focusing on real solutions, rather than technology buzzwords, is what sets successful companies apart.

How Real-Time Data Changes the Game for Fraud Prevention

The speed of fraud detection is critical. Financial institutions need to act fast to prevent losses. This highlight explains how using real-time data gives companies the edge they need to quickly catch fraud before it spirals out of control.

Raising $6.5M: What Investors Really Want to See

Jonathan breaks down how Baselayer raised $6.5 million in seed funding. This clip covers the importance of demonstrating real-world applications and having a team that can back it up, showing that investors want more than just a good idea.

The Growing Threat of Credit Stacking and Synthetic Identity Fraud

With businesses lending bigger amounts, the risk of fraud grows. This segment dives into how companies are using new tools to fight credit stacking and synthetic identities, protecting themselves from these rising threats.

Business Lending Done Right—How Companies Are Staying Safe

Lending money to businesses can be risky, but new tools are making it easier to decide who to trust. This clip looks at how businesses are using real-time analysis and ongoing monitoring to make smarter decisions when it comes to lending money.

Takeaways

1️⃣ Stick to a Long-Term Strategy

Don’t get sidetracked by short-term goals. Founders who prioritize a long-term strategy, like Baselayer does with its focus on risk management and compliance, set themselves up for sustainable success. Baselayer’s tools help fintech companies manage risks more efficiently, freeing them to focus on growth.

2️⃣ Balance Confidence with Humility for Success

Fintech founders need to believe in their vision, but they also need to listen to smarter people around them. Success comes from balancing confidence with humility, knowing when to push forward and when to lean on expert advice. Dropping your ego and accepting help is key to navigating the challenges of the fintech world.

3️⃣ Build Strong Relationships to Win in Fintech

Networking is crucial in fintech. Focus on creating genuine relationships that can help you grow your company. Whether you’re pitching to investors or partnering with other businesses, solid connections are essential to long-term success.

4️⃣ Prevent Fraud with Real-Time Monitoring

Take action by incorporating Baselayer’s real-time monitoring into your operations. Baselayer continuously tracks business activities, providing instant alerts when risks or fraud arise. This proactive approach gives your company the tools to prevent issues before they escalate, improving trust and security.

5️⃣ Prepare for the Future of Identity Control

The future of fintech could be all about controlling your identity through apps. This could dramatically reduce fraud and make financial services more accessible. Understanding these trends can help your company stay ahead of the curve.

Links:

Baselayer:

Website: https://baselayerhq.com/

LinkedIn: https://www.linkedin.com/company/baselayerhq/

Jonathan Awad LinkedIn: https://www.linkedin.com/in/jsawadd/

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Supporters

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This is a Production of Diamond D3, Media

ABOUT:

Jonathan Awad: Jonathan Awad is a seasoned entrepreneur and fintech expert. As the Co-Founder and CEO of Baselayer, he focuses on enhancing fraud prevention and risk management solutions. Drawing on his background in finance and technology, Jonathan delivers cutting-edge, privacy-compliant platforms for financial institutions. His expertise spans both traditional banking and fintech, reflecting a deep commitment to advancing financial solutions through strategic partnerships and advanced technology.

Baselayer: Baselayer empowers financial institutions and government agencies to trust the small and medium-sized businesses they serve. The company uses proprietary machine learning to search government records, the web, and private databases to answer questions about compliance, risk, or fraud for any business in the United States.

Their solution suite includes tools for identity verification (Know Your Business), enhanced due diligence, fraud prevention, risk profiling, lien filing, and portfolio monitoring. Baselayer’s platform also offers unique credit stacking capabilities and an advanced repeat fraud prevention system. The platform is integrated into companies with over 30 million accounts, rating and verifying real-time applications.

Host:

Tedd Huff is the Co-Founder of Voalyre and the President & Founder of Diamond D3, a consultancy renowned for its expertise in global payments and marketing. With over two decades of experience in FinTech, Huff has played a pivotal role in shaping the industry through his contributions to various startups and established companies, focusing on growth, innovation, process improvements, and enhancing user experience in the complexity of payments.

Colton Pond: Colton Pond is a seasoned marketing executive with a strong fintech and financial services background. In his latest role, Colton is the CMO for LoanPro's API-first lending platform, aiming to meet the increasing market demands. His track record includes a significant tenure at Truv, where he led the marketing team to achieve a 300% growth in year-over-year revenue. Colton has also held key marketing and sales positions at MX, Lucid, and HealthEquity, demonstrating his ability to drive success and innovation within the fintech sector.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally

Timestamps:

00:11 Episode Highlights

04:05 Jonathan Awad's Financial World Journey

09:21 Understanding Fraud and Verification

10:22 The Business Side of Fraud Prevention

14:48 Building a Business Credit Bureau

19:09 Insights on FinTech Founding and Funding

22:15 The Future of VC Fundraising

30:01 Understanding VC Perspectives

30:58 Building Relationships with VCs

31:52 The Art of Fundraising

33:12 Strategic Product Roadmapping

35:29 AI and Machine Learning in FinTech

36:51 The Role of AI in Business Identity

38:53 Streamlining Applications with UNDER

39:23 Navigating Regulatory Challenges

42:39 Future of Identity and Fraud Prevention

46:04 The Evolution of Credit Scoring

47:47 FinTech Companies to Watch

50:05 Controversial Takes in FinTech

53:25 Closing Thoughts and Future Outlook