Delivering leading AI-driven fraud prevention to a new business model
Conductor, the leading payments and banking-as-a-service platform in Latin America, has increased fraud detection by 25 percent and reduced overall payments fraud by 18 percent.
This is a significant reduction for the company which currently powers 90 million accounts and over USD 25 billion in payment volumes. Conductor has also achieved a 95 percent reduction in fraud analysis time using the FICO® Falcon® Platform, compared to its previous solution.
Conductor looked for an artificial intelligence solution that would help companies with predictive analysis that was both accurate and self-learning. The company selected FICO to monitor transactions across credit, debit and prepaid cards and digital accounts. They offered their clients a pay-as-you-go model that only charges clients for transactions analyzed for fraud.
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“Our business model is to provide the best payment technologies via a cost-effective platform that democratizes access for companies of all sizes and specialities,” said Ricardo Longo, Conductor's marketing and products director. “Our investment, scale and expertise allow us to offer fraud prevention services with the best tool on the market, operated by our specialists using a cost-per-transaction model, which our customers like”.
The card issuers using Conductor’s platform found that using FICO® Falcon® Platform reduced the amount of fraud, while also decreasing false-positive alerts. This resulted in positive customer experiences, an outcome important to issuers who look to stay the preferred brand and secure more business. Conductor’s pay-as-you-go model means that the initial investment in fraud prevention for card issuers is low and the implementation can be completed quickly, in a matter of weeks.
“The performance of FICO Falcon represented a major evolution in our strategy to prevent fraud with cards and bank transactions, especially in a pandemic scenario, when we identified an increase in electronic transactions and fraud,” said Armando Junior, head of fraud prevention at Conductor. “With money moving faster and not having time to react, It was evident that we needed a new fraud solution with AI and machine learning. We have completed the implementation in all of our issuing customers and we have started to win new customers who do not process with us, but who want to be protected by our services.”
For its achievements, Conductor won a 2021 FICO® Decisions Awards for fraud & security.
The Latin American payments market is booming with fintech and digital banks, and we understand the growing importance of monitoring new forms of payments, including the new Brazilian instant payments system. Conductor’s innovative business model is a great match for our FICO Falcon Platform, given its ability to scale to monitor millions of transactions and to adapt its fraud defenses using the latest real-time machine learning models.
“Conductor Brazil had a very holistic approach to the way they implemented Falcon into their payments processing business,” said Tiffani Montez, banking analyst at Aite and one of the FICO Decisions Awards judges. “The platform has digitized the entire process and democratized access to sophisticated fraud prevention technology. The judges were impressed with the impact and scale of this project.”
