Conductor Increases Fraud Detection by 25 Percent for its Customers Using FICO Analytics

Leading payments & banking-as-a-service platform in Latin America wins FICO® Decisions Awards for Fraud & Security using FICO® Falcon® Platform

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Fraud Protection & Compliance

SÃO PAULO – March 16, 2021

Highlights:

  • Conductor increases fraud detection by 25 percent using FICO® Falcon® Platform
  • With FICO, Conductor makes fraud prevention accessible to any company
  • Conductor won a 2021 FICO® Decisions Award for fraud & security

Conductor, the leading payments and banking-as-a-service platform in Latin America, has developed a fraud prevention strategy in partnership with FICO that 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.

More information: https://www.fico.com/en/solutions/payments-fraud

Previously, Conductor used its own solution. However, the implementation of FICO technology represented a major evolution in Conductor's strategy to prevent fraud with cards and bank transactions, especially in a pandemic scenario, when an increase in electronic transactions and the performance of fraudsters was identified. The solution enabled agile and efficient responses, contributing to the reduction of losses and to provide an even better experience for the final consumer.

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.

“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.”

“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,” said Nikhil Behl chief marketing officer at FICO. “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.” 

For its achievements, Conductor won a 2021 FICO® Decisions Awards for Fraud & Security.

“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.”

About Conductor
Conductor is the leading software platform for card issuance and banking-as-a-service in Latin America. With its native and open cloud API platform, Conductor enables access to the latest technology for leading fintechs, banks, retailers and companies from different segments across the region, allowing them to launch and scale innovative digital card and account programs. Conductor is currently responsible for more than 90 million accounts and processes more than US$ 25 billion in payment volume across Latin America.

About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2021 judges are:

  • Prasanna Dhoré, chief data & analytics and innovation officer, Equifax
  • David Dittmann, vice president, Data & Analytics, P&G (2019 winner)
  • René Javier Guzmán, market & liquidity risks director at Banreservas (2019 winner)
  • Tomas Klinger, decision science and data director at Home Credit (2019 winner)
  • Marcel Le Gouais, managing editor at Credit Strategy
  • Tiffani Montez, banking analyst at Aite
  • Lisa Morgan, journalist & analyst at InformationWeek
  • Ignazio Provinzano, head of risk operations at Swisscard (2019 winner)

The winners of the FICO Decisions Awards will be spotlighted at and win tickets to FICO® World 2021, the Decisions Conference, November 2021 in Orlando, Florida.

About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

FICO and Falcon are registered trademarks of Fair Isaac Corporation in the US and other countries.

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milladelfino@fico.com

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