LifeLock Inc. is betting that its acquisition of ID Analytics Inc., which closed Wednesday, will help it better market its services to retail banks.
That's a departure from LifeLock's current strategy, which primarily relies on selling identity theft protection to consumers.
There will be "better opportunities for distribution through those big banks," says Todd Davis, LifeLock's chief executive, in an interview with American Banker. "And certainly, if they want to offer LifeLock to their customers, we are going to make that as easy as possible for them."
LifeLock, of Tempe, Ariz., didn't previously have the ability to connect its services to the back office processes of retail banks, he says. But with ID Analytics, LifeLock can offer specialized products aimed at bankers.
"We will literally be reaching out today and starting some of those conversations immediately," Davis says.
ID Analytics, of San Diego offers a scoring platform for identity fraud. One of its products, ID Score, helps banks detect the likelihood of identity fraud tied to credit applications.
To facilitate the acquisition, LifeLock raised roughly $100 million in equity with the help of its investors.
LifeLock has had to overcome several controversies in recent years.
In 2009, LifeLock had to shutter its credit-freeze service following a legal dispute with Experian. A year later, the company refunded its customers $12 million as a part of a settlement with the Federal Trade Commission, which accused LifeLock of using deceptive advertising.
In LifeLock's ads, Davis published his own Social Security number as a show of confidence in his company's service. However, his identity was reportedly stolen multiple times.
"We have had to mature over the years," says Davis. "I think we have surprised a lot of people, defied some odds given who we have taken on from a competitive standpoint."