Finovate Blog

Courtesy of its partnership with Featurespace, TSYS had added new fraud prevention capabilities to its suite of risk and fraud offerings. The new solution, TSYS Foresight Score, leverages Featurespace’s machine learning technology and adaptive behavioral analytics platform, ARIC, to better fight fraud and reduce false positives. The tool is the product of an agreement to work together the companies announced more than a year ago.

Featurespace CEO Martina King pointed to ARIC’s particular effectiveness against transactional card fraud, adding that the combination of Featurespace’s technology and TSYS’ “industry experience and robust client base” would give TSYS Foresight Score “tremendous potential in the fight against fraud.” TSYS president and COO Pam Joseph said the tool would also help “increase revenue and improve operational efficiency. In the press release accompanying the announcement, TSYS cited a Nilson Report that put total fraud losses by FIs and merchants on payment cards at more than $21 billion in 2015 and on track to reach $31 billion by 2020.

TSYS Foresight Score pledges a 20% increase in overall fraud detection ability, a 35% increase in CNP (card not present) fraud detection, and a 79% gain in high-ticket transaction fraud detection. What makes the tool unique is its self-learning technology, which enables it to become better and more precise in detecting and stopping fraudulent transactions with increased use, and its ability to anticipate and score customer behavior in real-time. With Featurespace’s Bayesian-based statistical modeling, TSYS Foresight Score provides a strong compliment to traditional, consortium-based, anti-fraud approaches such as FICO scores and even TSYS’s own fraud detection solution, Falcon. ForeSight Score will be available to TSYS customers via the TSYS CardGuard ecosystem.

Featurespace Commercial Director Matt Mills demonstrated ARIC Fraud Manager at FinovateFall 2016. Headquartered in Cambridgeshire, U.K., the company was named to FinTechCity’s FinTech50 for 2017. This spring, Featurespace teamed up with digital family banking platform, goHenry, and partnered with merchant payment solution specialist, CashFlows. Featurespace has raised more than $16 million in funding, including a venture round in June. The company includes TTV Capital, Nesta Ventures, Imperial Innovations, Cambridge Capital Group, and Cambridge Angels Group among its investors. Martina King is CEO.

TSYS demonstrated its Authorization Controls at FinovateAsia 2013. Founded in 1983 and headquartered in Columbus, Georgia, TSYS announced an extension of its partnership with Tesco Bank last month and in May, enabled tokenization across its commercial card platforms in North America. TSYS began the year with news that both Avanzia Bank and BBVA were renewing their card and payments agreements with the company. Trading on the NYSE under the ticker, “TSS,” TSYS has a total market capitalization of more than $10 billion.