FinTech unicorn Revolut has revealed a new suite of machine learning technology which will help to lower card fraud.
The UK-based challenger bank is hoping to tackle card fraud and money laundering with algorithms powered by machine learning and computational techniques to beat timely manual processes.
With its new technology, Revolut is able to build deep insights and predictions around customer behaviour so it can dynamically identify new card fraud patterns, without much human interaction. This solution works by applying mathematical models onto datasets and identifying anomalies.
Revolut founder and CEO Nik Storonsky said, “I speak with banks all the time, and several of them have already approached us with offers to buy this technology. What we can accurately display in ten minutes would typically take a large bank over an hour to establish with their current manual processes.
“If you’re on a mission to reach tens of millions of customers and scale your business globally, then you cannot rely solely on manual human processes to effectively protect your customers against financial crime, especially as criminals are becoming more savvy in their tactics.”
The bank has spent the past year investing and bolstering its data science and engineering capabilities in order to automate, accelerate and improve decision-making around fraud and money laundering.
Over the past two months, the FinTech has been testing its anti-fraud system which helps uncover suspicious activity in real-time by analysing unusual spending actions. If a user’s typical habits differ the card is automatically frozen until the customer verifies it through the mobile app.
Revolut is a mobile app which enables consumers to spend, transfer and receive money to more than 120 countries for free and with a real-time exchange rate. The platform, which also offers a contactless VISA card, also supports free ATM withdrawals, buy and exchange cryptocurrency, split bills, track spending and make budgets, instantly freeze the account, and hold multiple currencies.
Earlier in the year, the challenger bank joined the FinTech unicorn group, following a $250m Series C round. The capital injection was led by DST Global and also picked up commitments from Index Ventures and Ribbit Capital. Its investment round valued the company at $1.7bn.
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