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Feedzai closes $50M Series C to help banks and merchants identify fraud with AI

Feedzai closes $50M Series C to help banks and merchants identify fraud with AI
From TechCrunch - October 17, 2017

Feedzai is announcing a $50 million Series C this morning led by an unnamed VC with additional capital from Sapphire Ventures. The six year old startup builds machine learning tools to help banks and merchants spot payment fraud.

In todays rapidly maturing world of fintech, Feedzai is trying to thread the needle between turnkey solution and customizable platform. With 60 clients including major financial institutions like Capital One and Citi, Feedzai remains optimistic that allowing savvy customers to build on top of its service is the key to longevity.

Feedzais platform is specifically designed to help mitigate payment fraud. This includes use cases where money is transacting between at least two parties. Under a microscope, seemingly boring transaction logs can hint at illicit actors looking to game the system for financial gain.

Until now banks have used solutions based on verticals, Nuno Sebastiao, co-founder and CEO of Feedzai, explained to me in an interview.The fraud solution you have for an ATM wouldnt be the same fraud solution you would use for online banking which wouldnt be the same fraud solution would have for a voice call center.

But this is rapidly changing. Financial institutions are actively looking to upgrade old systems with solutions that can process data in aggregate, taking advantage of advancements in machine learning and the prevalence of things like in-memory databases.

As these replacement cycles roll around, Feedzai aims to communicate its stability in the marketregardless of its status as a startup. The sheer amount of capital the company has raised should help to convince large customers that it is a safe steward of their risk management needs.

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