In an era where digital transactions are king, the threat of financial fraud looms larger than ever, compelling fintech companies to continually advance their fraud prevention strategies. A significant development in this field is the recent partnership between Fingerprint and Oscilar, two leading forces in the tech-driven security domain. This collaboration is set to redefine the landscape of fraud prevention in the fintech industry by integrating cutting-edge device intelligence with sophisticated AI-driven risk management solutions. Their joint efforts aim to enhance security measures for financial institutions, ensuring safer and more reliable digital financial services.
Overview of the Companies
Fingerprint
Founded in the heart of Silicon Valley, Fingerprint quickly established itself as a leader in device intelligence technology. Since its inception in 2011 by tech entrepreneurs Dan Pinto and Mike Nelson, Fingerprint has been headquartered in San Francisco, California. The company specializes in creating unique device identifiers that track and verify devices involved in digital transactions with an accuracy rate of up to 99.5%. Over the years, Fingerprint has catered to a wide range of clients, including major banks, fintech firms, and e-commerce platforms, providing solutions that bolster secure customer interactions and prevent fraudulent activities.
Oscilar
Oscilar emerged on the fintech scene in 2021, co-founded by Sachin Kulkarni and Neha Narkhede, both veterans in the field of financial technology and cybersecurity. With its headquarters in Chicago, Illinois, Oscilar has pioneered the use of no-code, AI-powered platforms that simplify risk management for financial institutions. The company’s innovative platform allows for quick adaptation and deployment of risk decisioning policies, minimizing the need for extensive engineering resources. Oscilar’s technology is designed to cater to a diverse clientele, including fintech startups, established banks, and credit unions, facilitating enhanced compliance and fraud prevention capabilities across the board.
Details of the Partnership
The partnership between Fingerprint and Oscilar is a strategic alignment aimed at fortifying the fintech sector against the escalating threat of online fraud. This collaboration leverages the strengths of both companies—Fingerprint’s unrivaled device intelligence and Oscilar’s robust AI-driven risk decisioning platform. By integrating Fingerprint’s technology into Oscilar’s no-code environment, the partnership promises to streamline the process of fraud detection and prevention, offering fintechs, banks, and credit unions a more seamless and secure customer experience.
The initiative will focus on enhancing various customer interaction points, from account creation to transaction verification, to combat prevalent fraud scenarios such as new account fraud, account takeovers, and unauthorized payments. The joint technology aims to create a frictionless environment where security measures do not impede user experience but instead function covertly to maintain the highest security standards. The companies have also committed to continuous innovation within their partnership, ensuring their solutions evolve in step with new fraud tactics and technological advancements.
“By joining forces with Oscilar, we empower customers to strike the perfect balance between user convenience and robust security. We are committed to providing businesses with the most reliable, efficient and secure solutions to protect their assets and safeguard their customers’ trust.”
Dan Pinto, co-founder and CEO of Fingerprint
“We founded Oscilar to revolutionize risk management for fintechs, banks, and credit unions. Partnering with Fingerprint is a natural fit. By integrating their unparalleled device intelligence into our no-code platform, we’re making it easier than ever for our clients to automate risk decisioning, reduce fraud and deliver the seamless experiences their customers deserve.”
Sachin Kulkarni, co-founder and chief technology officer at Oscilar.
Technological Synergy
Fingerprint’s Device Intelligence Technology:
Fingerprint’s platform operates on a sophisticated algorithm that processes over 100 signals from a user’s device to generate a unique and stable identifier, known as DeviceID. This identifier provides fintechs with the capability to track and verify each device involved in their digital environment with up to 99.5% accuracy. By understanding each touchpoint, Fingerprint’s technology helps in making informed decisions to block or flag suspicious activities, thereby enhancing the overall security framework.
Oscilar’s AI-Powered Risk Decisioning Platform:
Oscilar brings to the table its revolutionary no-code AI platform that empowers financial institutions to quickly adapt and implement risk policies tailored to their specific operational needs. The platform’s user-friendly interface allows non-technical staff to manage and deploy complex decisioning workflows, which significantly reduces dependency on IT departments and accelerates response times to emerging threats. Additionally, the AI component continuously learns from new data, thereby improving its predictive capabilities and making the fraud prevention mechanism more robust over time.
Together, these technologies create a powerful synergy that not only detects and prevents fraud more effectively but also enhances operational efficiency. This integration allows client companies to safeguard their operations from sophisticated fraud schemes while maintaining a smooth and engaging customer experience. The strategic blend of Fingerprint’s precision in device identification and Oscilar’s agility in risk management transforms the conventional approach to tackling financial fraud, making it more dynamic and proactive.
Market Impact and Importance
The financial sector has witnessed a dramatic increase in the incidence and sophistication of online fraud, especially as digital transactions become more prevalent. According to Merchantsavvy’s Payment Fraud Statistics, Trends & Forecasts 2024, global online payment fraud losses are projected to surge to $343 billion by 2027. This stark statistic underscores the critical need for robust fraud prevention strategies that not only react to fraud attempts but also proactively prevent them.
The partnership between Fingerprint and Oscilar arrives at a crucial juncture, poised to make a significant impact on the fintech industry. By combining Fingerprint’s precise device intelligence with Oscilar’s efficient AI-powered risk decisioning, the collaboration offers a dual approach to fraud prevention. This is especially valuable in protecting against the types of fraud that have become more common with the rise of digital financial services, such as synthetic identity fraud, account takeover, and phishing.
For fintechs, banks, and credit unions, the cost of fraud extends beyond immediate financial losses—it also affects customer trust and regulatory compliance. The technologies provided by Fingerprint and Oscilar can help these institutions not only minimize losses but also build stronger relationships with their customers through enhanced security measures. Furthermore, the ability to deploy these solutions swiftly and scale them according to need makes this partnership particularly attractive for institutions of all sizes.
Future Prospects
The dynamic nature of fraud, especially in the digital domain, necessitates continuous innovation and adaptation. The partnership between Fingerprint and Oscilar is well-positioned to lead this charge, given their foundational commitment to innovation and their combined technological prowess. Looking forward, both companies are focused on expanding their reach and enhancing their offerings to address emerging threats more effectively.
Future enhancements may include integrating machine learning models that can predict fraud attempts before they occur, expanding the range of anomalies the system can detect, and refining the sensitivity of the risk assessment tools to differentiate better between legitimate customer behavior and potential fraud. Additionally, both firms plan to extend their solutions to new markets, particularly targeting regions with rapidly growing digital payment ecosystems but currently limited fraud prevention infrastructure.
As regulatory environments around the world tighten and demand more rigorous compliance measures from financial institutions, the solutions provided by Fingerprint and Oscilar could become even more integral. These solutions not only help companies comply with existing regulations but also prepare them for upcoming changes in the legal landscape. This proactive compliance strategy is likely to be a key selling point as more businesses seek to future-proof their operations against both fraud and regulatory changes.
Conclusion
The partnership between Fingerprint and Oscilar represents a significant advancement in the fight against financial fraud, combining cutting-edge technologies to offer robust, scalable, and user-friendly fraud prevention solutions. By integrating Fingerprint’s detailed device intelligence with Oscilar’s agile, AI-powered risk management platform, this collaboration provides financial institutions with the tools necessary to secure their operations and protect their customers.
As the financial landscape continues to evolve, the importance of effective fraud prevention and risk management cannot be overstated. Institutions that leverage these advanced solutions not only enhance their security but also improve their overall customer experience, fostering greater trust and loyalty. The ongoing development of these technologies and their adaptation to meet the challenges of an increasingly digital world will undoubtedly make Fingerprint and Oscilar leaders in this critical field.
This partnership not only sets a new standard in technological innovation for security but also demonstrates a clear pathway for other companies in the fintech sector to follow. For stakeholders in the financial industry, keeping a close watch on the progress and successes of this collaboration will be key to understanding the future of fraud prevention technology.
