Transaction Security

CEO Interviews
Nuno Sebastiao, Feedzai (cont.)
“Many of the
modern
techniques and
technologies
weren’t available
even 5 years ago.
Much of the
existing
infrastructure was
built when
commerce was not
operating in a state
of ‘real-time and
always-on.”
How is Feedzai differentiated vs other competitors in the marketplace?
In terms of capabilities, Feedzai hits a sweet spot:
• Omnichannel: works in-store, online, mobile – anywhere customers choose to transact.
Other competitors, for instance, only work online and cannot connect offline behavior
to get a 360 degree view
• Data science: beyond rules, uses artificially intelligent machine learning
• Big data scale: real-time streaming engine based on modern data architecture
• Whitebox scoring: semantic layer translates underlying machine logic into
human-readable text and explanations
Why can’t the larger processors and issuers in the payments space effectively
harness the power of big data and machine learning engines to combat fraud themselves?
What are the key challenges for organizations trying to do what you do themselves?
Imagine if large processors and issuers could start all over and design risk systems that utilize the
best of what modern technology and science could offer? That’s what we’re doing at Feedzai. We
took a clean-slate approach. We built both a platform and a company that overcomes the traditional challenges:
• Legacy infrastructure: Many of the modern techniques and technologies weren’t available even 5 years ago. Much of the existing
infrastructure was built when commerce was not operating in a state of “real-time and always-on.”
• Talent acquisition: If you’re a rising data scientist or developer, working for a startup is very attractive.
• Fear of disruption: Time and time again, we’ve seen the innovator’s dilemma play out in the payments industry. For example, Visa
could not create PayPal, PayPal could not create Square, and so forth.
• Decreasing cycle times: Fraudsters are more agile and iterating at a “fail fast” pace, while many incumbent processors, issuers and
solutions providers are still operating in a “waterfall” world.
How does Feedzai interact with payment-related security technologies such as EMV, 3-D Secure and Tokenization?
The best security strategy is a multilayer approach because no single solution or tool works for all environments, situations or customers. For
example, large e-commerce merchants use on average 8 tools. These solutions were not designed to work together and often conflict. On the
other hand, our clients want a consistent experience for their customers regardless of when or where they choose to transact. So as tools
proliferate, our clients tell us that they need a “super brain” to manage their growing multilayer security approach that is designed to keep
customers happy and safe. Thus, Feedzai is used to manage and preserve this “customer experience” regardless of which technology is
used, whether it be EMV, tokenization, biometrics, or whatever is next.
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