rewrite this title Illuma Receives Financing for Voice Authentication Security Solutions – Finovate

Illuma has secured strategic financing from Stifel Bank. The amount of the financing was undisclosed.

The funds add to the company’s $9 million Series A funding round it received in September of 2024.

Illuma plans to use the funds to accelerate product innovation, expand its market reach, and help financial institutions safeguard interactions.

Voice authentication solutions provider Illuma received strategic financing from Stifel Bank. While the amount of the financing was not disclosed, it adds to the $9 million Series A funding the company received in September of 2024.

“Our tech and operations teams went through deep due diligence and have been highly impressed with the quality and simplicity of Illuma’s offerings, which address a critical gap for mid-market FIs,” said Senior Vice President of Venture Lending and Banking Stifel Bank Nick Elsenpeter. “We are excited to support their continued growth.”

Illuma will use today’s financing to help community banks and credit unions enhance security and streamline authentication processes across voice channels. More specifically, the funds will help the company accelerate product innovation, expand its market reach, and further support financial institutions in safeguarding consumer interactions.

“This strategic financing marks an exciting milestone for Illuma as we continue to scale and provide financial institutions with cutting-edge authentication solutions,” said Illuma CEO Milind Borkar. “The support from Stifel underscores the growing demand for frictionless security solutions that reduce operational costs while enhancing consumer trust. With this financing, we are well-positioned to expand our capabilities and further solidify our leadership in the market.”

Headquartered in Plano, Texas, Illuma offers a flagship product, Illuma Shield. The Illuma Shield authentication tool replaces traditional knowledge-based authentication (KBA) practices, such as asking security questions or prompting for PINs, with a real-time voice authentication solution. The low-friction solution not only enhances the caller experience, but it also improves operational efficiency for the financial institution while helping prevent fraud.

When a consumer calls into a call center using Illuma Shield, they can complete enrollment simply by saying “yes” and continuing the conversation. The system does not require them to call into a specific line, wait on hold, or repeat a special phrase. As a result of the straightforward experience, Illuma reports that more than 95% of callers invited agree to enroll.

As fraud continues to rise and the need for a seamless customer experience escalates, organizations can no longer afford to rely on outdated authentication methods that frustrate customers and leave security gaps. Traditional KBA techniques are increasingly vulnerable to social engineering attacks and data breaches. Voice authentication solutions like Illuma’s can help reduce fraud risk while enhancing operational efficiency, cutting down on call times, lowering authentication costs, and ultimately building consumer trust. As the industry moves toward more sophisticated identity verification methods, voice authentication solutions like Illuma’s will play a crucial role in the future of secure and efficient financial interactions.

Founded in 2016, Illuma recently won Best of Show at FinovateFall 2024 in New York for its deepfake detection technology. Check out the award-winning demo below.

Photo by Tiger Lily

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