By Nuno Sebastiao
What a tremendous time to be working in the field of machine learning, and in the financial industry. From data breaches at retailers to increased use of mobile devices for payments, there is never a dull moment in this fast-paced industry.
Last year brought a lot of promise for Feedzai. We established our United States headquarters, entered the Brazilian and Indian markets, and have been working with a number of large banks, acquirers and merchants to make commerce safer. And, our machine learning technology analyzed over $750 million in payment volume; we’re on track to do much more than that this year.
The prevalence of fraud is helping to drive our success. Banking and payments are changing rapidly – mobile devices are becoming the preferred method of payment, credit cards in the US are adopting EMV technology, and fraudsters are trying to stay one step ahead of us all. And, they are often successful, as we’ve seen with major data breaches at retailers, financial institutions and insurance providers just to name a few.
With these changes brings vast amounts of data. All of these data points are coming from various sources – POS devices, mobile devices, computers online, etc., and to make commerce safer, they have to be analyzed in real time. We know that machine learning and behavioral analytics are crucial in making commerce safer for everyone involved, and rule-based fraud detection solutions just do not work any longer – primarily due to this virtual tsunami of data.
Last year Feedzai also launched our fraud detection service API for developers, which has seen exponential growth since its launch at Money20/20 in October 2014. This allows us to further collaborate with some of the great developers out there, and find new uses for our platform. Through our developer portal, we’ve has seen more than 300 percent growth in transactions in just four months and a dramatic surge in its certified partner program.
We’ve validated a lot of what we’ve already initially discovered about retailer needs by handling the millions of dollars of purchases that have come through the Feedzai API in the last several months. These businesses are looking for plug-in software with open architecture like Kill Bill, a certified partner of Feedzai that offers flexible subscription for billing and payments, which can better handle highly custom business logic. Our certified partners continue to innovate by embedding anti-fraud as a service to ultimately create beautiful and safe experiences for sellers and buyers.
Scoring from Feedzai allows merchants to see the fraud score (0-1000), with an explanation as to why the score was provided so users have the intelligence to decide to accept or reject the transaction.
Nuno Sebastiao is a co-founder and CEO of Feedzai. Previously, Nuno led the development of the European Space Agency Satellite Simulation Infrastructure. He holds an MBA from London Business School.