On Wednesday, financial technology group Feedzai said it had raised $200 million in an investment round led by KKR, an investment company, valuing the company at $1 billion. Other investors include Sapphire Ventures and Citi Ventures, who all invested in the company, which is headquartered in San Mateo, California.
Feedzai develops machine learning and Artificial Intelligence technology to help banks and financial institutions sport and prevent payment fraud, money laundering, and other illegal financial activities.
The company has its engineering and product operations based in Portugal and plans to expand further.
What does Feedzai want to do next?
The funds raised in the latest round will be used by the company to speed up its global reach and add more products to its portfolio. Using digital banking and payments is doing well, now that everyone is encouraged to reduce contact because of the pandemic.
Both consumers and businesses have had to do more of their activities online, giving fintech companies the room to grow.
The rapid digital transformation that is rocking every sector of the economy has also come with a lot of problems. For fintech companies, online financial crimes have skyrocketed.
Consumers faced a 650% increase in scams that take over accounts and a 250% increase in online banking fraud attacks in the last three months of 2020, compared to the same period in 2019. These numbers were reported by Feedzai, who conducted the study.
Banks have had to look for new technology that can automate and augment the existing technology to make sure that crime prevention in online financial institutions is improved.
Feedzai has big-name clients that include companies like Banco Santander, Citigroup, Fiserv, and even fintech firms like SoFi.