Fraud and financial crime fighter Featurespace continues growth trajectory in the US

Featurespace continues to maintain a leading position as a provider of enterprise fraud and financial crime prevention software on both sides of the Atlantic and around the world.

The company’s technology uses machine learning to detect and prevent fraud and financial crime. With a 70 per cent growth in 2022 and continued successful collaborations with the industry in the United States, Featurespace’s customers include some of the largest financial institutions around.

The team continues its mission to make the world a safer place to transact by developing market-leading solutions to fight the problem with the use of real-time machine learning software powered by its innovative Adaptive Behavioral Analytics and Automated Deep Behavioural Networks. 

The company’s ARIC™ Risk Hub is today deployed in some of the world’s largest banks, payments processors and merchant acquirers. 

There are a number of recent success stories emanating from the Featurespace stable that directly benefit the United States financial services industry.

The partnership between TSYS, a Fortune 500 global payments company, and Featurespace was recognised for the Best Use of Payments Data or AI in Financial Services at the PAY360 Awards (previously the Emerging Payments Awards) that celebrate innovation and collaboration, recognising companies that have made significant advances in how we pay today. 

Featurespace was also awarded silver for the Best Financial Crime Prevention Solution.  

The contenders had to prove the added value they delivered in the financial services industry either via customer service, behavioural profiling, fraud prevention or loyalty programs. 

The TSYS Foresight (SM) Score, powered by Featurespace, won the category because it has been built with adaptability and change in mind. TSYS Foresight Score is a fraud and risk scoring tool that incorporates innovative machine learning – a form of AI that allows software to learn over time without being explicitly programmed – to bolster an issuer’s ability to fight transactional fraud. 

From the start of and during the pandemic, the TSYS Foresight Score proved a baseline measure and standard of stability during a disruptive period in the financial services ecosystem. The solution continued to protect millions of people from fraud and financial crime, even as underlying transactional behaviours changed.  

Accomplishing recognition for focus on continuous innovation

In March 2023, Featurespace was announced as one of the winners of the Privacy Enhancing Technologies (PETs) Challenge, which was launched by the UK and US governments in 2022.

The PETs Challenge was a competition that challenged innovative businesses to develop privacy-preserving solutions for financial crime detection. 

Featurespace’s solution uses federated learning to train machine learning models on sensitive data without sharing the data with other organisations. This helps to protect the privacy of individuals while still allowing organisations to collaborate on fraud prevention.

Featurespace’s solution:-
Protects the privacy of individuals.
Allows organisations to collaborate on fraud prevention.
Is effective at detecting fraud.
Is scalable and can be used by organisations of all sizes.

Featurespace’s solution was one of the top four in the PETs Challenge. The company is now working to commercialise its winning technology and bring it to market.

Diebold Nixdorf partnership

Ohio-based Diebold Nixdorf, a world leader in automating, digitizing and transforming the way people bank and shop, and Featurespace, announced in late 2022 that the companies are partnering to integrate Featurespace’s highly specialised, fraud prevention technology into Diebold Nixdorf’s Vynamic® Payments platform. 

Vynamic Payments is a cloud-native payments platform that allows the reuse of services across acquiring, processing, and issuing domains, and has been proven with leading financial institutions around the globe.
 
The software’s microservice architecture enables business agility and consumer experiences that seamlessly bridge any channel, integration point, payment type or authentication method.  

By partnering with Featurespace, Diebold Nixdorf can provide financial institutions a fully integrated payments solution with proven real-time fraud detection and prevention capabilities without the concern of managing multiple vendors.

Featurespace helps Payment Sector fight scam pandemic
The continual investment in innovation to create technology for good saw Featurespace awarded two new patents to help fight global financial crimes. The first is for its Fragmentation Engine, an innovative solution that enables ultra-low latency, real-time scoring capabilities. 

The second is for its Sandbox Layered State that enables the addition of new behavioural elements to be combined with existing behavioural profiles with zero impact on real-time processing flow.

These patents are intended for use around the world by regulated financial services, payment service providers (PSPs), banks and businesses, in the international fight against fraud, scams, and financial crime. 

The patented technology was designed with legal and regulatory frameworks in mind.

Creating historic US report

The inaugural ‘The State of Fraud and Financial Crime in the U.S.’ report was created in conjunction with PYMNTS.com and published for the industry in the autumn of 2022. The report paints a picture of a sector trapped between increasing financial crime – especially scams – and the perception that any solution will bring added complexity and compliance headaches. 

Featurespace’s report surveyed 200 executives working at financial institutions with at least $5 billion in assets to gather a holistic view of key fraud trends and financial crime prevention measures that exist today. 

Given that there is no single, authoritative source of data, the report serves to fill the gap, and provide the industry with a baseline for benchmarking and decision making. 

Ultimately, the purpose is to start a conversation that promotes debate, discussion and knowledge-sharing across the sector. 

The survey for the second edition of the report is underway and the final report will be published this coming autumn. 

For more details about the company, the technology and career opportunities on both sides of the Atlantic, visit www.featurespace.com

The PETs team on the Demo day in London in May, is congratulated by the UK Minister of State for Data and Digital Infrastructure, Sir John Whittingdale. From left to right from are Jason Wong, David Sutton, Sir John Whittingdale, Annegret Funke and Iker Perez. Image courtesy – Featurespace