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Behavioral analytics technology provider Featurespaceannounced today that it closed a $37.4 million (£30 million) round of funding.
The round, which brings Featurespace’s total funding to $108.6 million, was led by Merian Chrysalis Investment Company Limited with additional contributions from existing investors.
“During these challenging times, our machine learning models have automatically adapted to the shift in consumer, business and criminal behavior,” said Featurespace CEO Martina King. “It is our continued focus to deliver industry-leading, fraud and anti-money laundering solutions to our customers and partners.”
Featurespace will use the funding to “support continued growth” of its financial crime detection technology. The company launched its adaptive behavioral analytics platform, the ARIC Risk Hub, in 2008. The ARIC Risk Hub helps organizations fight financial crime by leveraging machine learning and anomaly detection to flag suspicious activity in real time.
The company has more than 30 major bank clients including four of the five largest banks in the U.K. Among Featurespaces customers are HSBC, TSYS, Worldpay, RBS NatWest Group, Danske Bank, ClearBank, and more.
Two of the biggest themes in fintech – digital identity and the rise of fintech in Central and Eastern Europe – meet in the latest announcement from biometric authentication specialist and Finovate Best of Show winner iProov. The company’s facial recognition technology now makes it easier for users of SK ID Solutions’ Smart-ID Service in countries like Estonia, Latvia, and Lithuania to renew their accounts without having to visit a physical bank branch.
“This is a major development for all digital identity providers,” iProov CEO Andrew Bud said. “Estonia has proved, for the first time, that a remote, automated, biometric ID verification service can deliver the highest possible levels of security.”
Recognized as equal to a handwritten signature throughout Europe, Smart-IDs enable users to authenticate themselves and provide permissions online using a smartphone app. iProov’s facial recognition technology adds a three-second scan to compare the image of the user to the image on their presented ID document to help defend against fraud and identity theft.
Smart-ID also leverages NFC-based ReadID document verification technology from InnoValor.
Financial crime risk management innovator Featurespace will be helping Enfuce combat fraud and money laundering courtesy of a newly announced partnership. Enfuce, a financial services firm based in Finland, will use Featurespace’s ARIC Risk Hub to enhance its ability to protect its customers from fraud and financial crime.
“Our clients deserve industry-leading services that allow them to freely and fully concentrate on the success of their core business, without worrying about ever-evolving fraud,” Enfuce co-founder and chair Monika Liikamaa said.
ARIC Risk Hub offers real-time transaction monitoring for fraud and financial crime, enabling institutions to identify and act against anomalous and potentially dangerous behavior as it occurs. The technology also reduces the number of false positives by as much as 70%, keeping anti-fraud processes efficient. Featurespace introduced its fraud-fighting technology to Finovate audiences at FinovateEurope 2016.
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A new partnership between fraud prevention specialist Featurespace and payments provider Elavon will improve the company’s ability to combat fraud in real-time and make the payment experience simpler and safer for consumers. Elavon will deploy Featurespace’s ARIC platform, which leverages behavioral analytics and machine learning to provide a higher degree of fraud protection and risk management.
“Elavon is delighted to work with Featurespace to bring top fraud prevention solutions to market to protect merchants and consumers,” Elavon Merchant Services General Manager and EVP Hannah Fitzsimons said. “We are committed to developing the most innovative fraud and security solutions in the payments industry.”
The combination of Featurespace’s ARIC solution and Elavon’s 3Ds service, which detects fraud incidents to help limit the need for further security checks, will give merchants an “advanced, layered approach” when it comes to fighting fraud. Elavon is bolstering its anti-fraud technology in line with the second Payments Services Directive (PSD2), which mandates strong customer authentication (SCA) and directs processors, merchants, and FIs to do more to combat card-not-present fraud by improving security involving online payments.
Featurespace CEO Martina King said that the partnership would help Elavon “stay one step ahead of criminals at all times” and enable the company to better serve the 1.3 million customers around the world who rely on Elavon “to safeguard their businesses.”
Based in Atlanta, Georgia, Elavon is a global payments provider, processing more than three billion transactions a year. This summer, the company was recognized in The Strawhecker Group’s annual Real Transaction Metrics Awards for its Fusebox solution, which was named “Best Performing Gateway” as well as picking up a first place in the “Fastest Transactions” category and earning a runners-up mention for “Highest Authorization Rate.” Backed by U.S. Bank, and active in 10 countries, Elavon was founded in 1991, and was acquired by Brazil’s Stone Pagamentos in the spring of 2016. Jamie Walker is CEO.
Featurespace demonstrated its ARIC Fraud Manager at FinovateFall 2016. The technology leverages machine learning to identify anomalous behavior in real-time, enabling institutions to stop new fraud attacks as they take place. The solution also measures its own accuracy against the rate of change to ensure that legitimate customer activity is not hindered and the number of false positives is kept at a minimum. The technology, developed out of the University of Cambridge, has been deployed in more than 180 countries.
Founded in 2008 and headquartered in Cambridge, U.K., Featurespace was named to the European Business Awards’ Ones to Watch list last month. Also in August, Featurespace announced a partnership with fellow Finovate alum, Emailage, to help the email risk assessment company better fight online application fraud.
Other partnerships from Featurespace announced recently include a pact with processing solution provider Contis in July, and an agreement to provide transaction monitoring for Irish financial services company, Permanent TSB, in June.
Recognized as “Best in Class” by Aite Group in its report on fraud and advanced machine learning platform vendors this spring, Featurespace began the year with news that it was going live in Singapore. “Our financial services customer base is growing fast,” Featurespace’s King said when the launch was announced in February. “We are now working with 17 banks across continental Europe, the U.K., the U.S., and Latin America.”
With more than $72 million in funding, Featurespace includes MissionOG, Insight Partners, Highland Europe, TTV Capital, and Imperial Innovations among its investors.
The newly announced collaboration between email risk assessment innovator Emailage and fraud prevention and risk management firm Featurespace is designed to combat online application fraud, a problem that grew by 159% last year according to U.K. Finance.
The partnership integrates Featurespace’s ARIC Fraud Hub with Emailage’s data and risk assessment scores. The combined solution identifies and reports application fraud in real time, boosting the accuracy of customer authentication during processes like onboarding and account maintenance. The integration will also make it easier for institutions to comply with the latest payment regulations.
“In order to keep up with the fast-changing payment landscape, we are always on the lookout to leverage our expertise and that of other providers,” Chief Partnership Officer at Emailage Tim White said. “Emailage and Featurespace are two companies moving in the same direction in terms of innovation and growth. Therefore, we felt this collaboration was a highly strategic opportunity.”
“This is yet another step in our journey to provide our customers with full regulatory compliance and a best-in-class solution,” White said.
Emailage turns email addresses into global digital identifiers. The company leverages a worldwide data network to assess the likelihood that the individual who provided the email address is reliable as a potential customer or applicant. Via the integration, digital identities that are established by Emailage are then processed by the Adaptive Behavioral Analytics of Featurespace’s ARIC platform, which builds individual behavioral profiles. This improves the ability of the machine learning models to automatically detect risk and to combat new threats as they develop. Emailage noted that it has helped organizations around the world mitigate $2.8 billion in fraudulent purchases and applications.
“This integration makes it easy for all of our customers to leverage the combined power of our innovative Adaptive Behavioral Analytics and Emailage’s proprietary data set to improve risk scoring and reduce exposure to sophisticated online threats at the point of application,” Featurespace CEO Martina King said.
Founded in 2008, Featurespace demonstrated its ARIC Fraud Manager solution at FinovateFall 2016. The company’s partnership announcement with Emailage comes at the same time as a report that banking and payments solutions provider Contis has completed deployment of Featurespace’s ARIC Fraud Hub.
In June, Featurespace announced that it would power transaction monitoring for Ireland’s Permanent TSB. This spring, the company was highlighted by Aite Group in its 2019 report on anti-fraud and AML machine learning platform vendors, and its CEO was profiled by Hypepotamus on the topic of workplace diversity.
Earlier this year, Featurespace announced a partnership with retail finance technology provider Deko, and launched its technology in Singapore. The company began 2019 with a major fundraising, bringing in $32.3 million (£25 million) in new capital in a round led by Insight Venture Partners.
Emailage demonstrated its Browser Extension at its Finovate debut in 2015. The extension marks email with an easily identifiable icon that enables users to get an instant analysis on the risk associated with the email. With the extension, users of Chrome, Firefox, and Internet Explorer can leverage Emailage’s fraud-detecting technology to assess the risk of emails and websites.
Emailage wonBest E-commerce Initiative at the PayTech Awards in London last month. This spring, the company introduced a trio of new points of presence in Singapore, Australia, and Germany, in what company CTO Rafael Loureiro said demonstrated the company’s “strategic commitment” to making its technology available worldwide. An office in Dublin, Ireland, was opened in June.
Emailage also announced it added a “big four” U.S. bank, a major Asian payment platform, and a global e-commerce solution provider to its shared intelligence network in the first quarter of this year. Founded in 2012, the company has raised $15.7 million in funding from investors including Anthos Capital, Cobre Capital, and Mucker Capital. Rei Carvalho is CEO.