Interview Synopsis

Feedzai & AI-based fraud protection

  • Private Equity
  • TMT
  • North America

In an increasingly digital world, cyber crime — particularly of the financial kind — is a serious and growing problem. There has also been a surge in financial crime during the COVID-19 pandemic as online payments increased. Third Bridge Forum spoke to a former VP at Feedzai to discuss the company’s offerings, the operating environment and its main competitors. 

Feedzai international growth “going really well”

First of all, the expert gave an overview of Feedzai and its approach to AI-based fraud protection. Described as a “data-agnostic machine learning environment attached to a data-agnostic real-time decision engine”, combating financial crime is the company’s ultimate value proposition, we heard.

Thinking about the operating environment, the expert emphasised that the ways in which people pay for things are changing, including who people trust their money with. “The biggest asset that banks had, historically, was trust and data, and they did not monetise either effectively enough in the digital revolution,” they said. “Now you have other companies that are doing a better job of monetising trust and data, and that’s where alternative payment methods are springing up.” WeChat Pay was given as an example here. 

In terms of the competitive landscape, the expert said the established players, such as FICO and Actimize, have certain advantages over the newer entrants. For example, they “bank on the stickiness of having lots of different systems that are interoperable and depend on each other.” The way that Feedzai competes with these players is a “cultural sell”, we heard. “If you’re buying technology that way, then you’re going to get left further and further behind by new neobanks,” explained the specialist. 

The former Feedzai VP also shared their insights on the newer players, which include Featurespace, Kount and Sift. “From a pure technology point of view, it’s Feedzai first, Featurespace second, Kount a long way third. From a product-market fit on chargeback reduction in the acquirer space, Kount built a good product, a good, off-the shelf, boxed product.” 

Overall, the expert was bullish on Feedzai, noting that as well as having the best technology, there’s “so much money for them to go after”. AML, KYC/KYB, authentication and biometrics are all opportunities for the company, according to the Interview. Other areas explored were regulatory risk, potential M&A and Feedzai’s growth strategy. 

To access all the human insights in Third Bridge Forum’s Feedzai & AI-based fraud protection Interview, click here to view the full transcript. 

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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