This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Phone-based fraud prevention company Pindropacquired Next Caller this week. Terms of the deal were undisclosed.
Pindrop anticipates the purchase of NextCaller, a call verification and fraud detection solution for contact centers, will position the company for growth, expand its client base, and position it as an industry leader.
“Our two companies will now be able to service the market in its entirety with the right solution for whatever stage of voice security and authentication they are in,” said Next Caller Co-founder and CEO Ian Roncoroni.
The deal comes at a time when demand for call centers is expanding. In a recent report, Forrester found that 42% of brands surveyed saw an increase in year-over-year call center call volume since the pandemic began. Additionally, 65% of companies reported they struggle to manage the high call volume and 80% of firms reported that fraud is a very serious issue in the call center.
Given this, Pindrop CEO Vijay Balasubramaniyan has a positive outlook for the fraud prevention industry. “We couldn’t be more bullish about the future,” he said, “The need for our combined solutions will only continue to grow as brands across multiple industries not only look to better secure their voice channel, but also improve the customer experience. Understanding who you are speaking to is the most effective way to build a better relationship with customers, resulting in a higher NPS and subsequently more profitable exchanges.”
As for what’s next, Next Caller will operate as a wholly-owned subsidiary under Pindrop.
Founded in 2011, Pindrop debuted an IVR solution as well as the availability of its voice authentication technology for use in OTT streaming devices. Headquartered in Alabama, Pindrop is privately held and has raised a total of $213 million from investors including Andreessen Horowitz and Citi Ventures.
Two of the biggest themes in fintech – digital identity and the rise of fintech in Central and Eastern Europe – meet in the latest announcement from biometric authentication specialist and Finovate Best of Show winner iProov. The company’s facial recognition technology now makes it easier for users of SK ID Solutions’ Smart-ID Service in countries like Estonia, Latvia, and Lithuania to renew their accounts without having to visit a physical bank branch.
“This is a major development for all digital identity providers,” iProov CEO Andrew Bud said. “Estonia has proved, for the first time, that a remote, automated, biometric ID verification service can deliver the highest possible levels of security.”
Recognized as equal to a handwritten signature throughout Europe, Smart-IDs enable users to authenticate themselves and provide permissions online using a smartphone app. iProov’s facial recognition technology adds a three-second scan to compare the image of the user to the image on their presented ID document to help defend against fraud and identity theft.
Smart-ID also leverages NFC-based ReadID document verification technology from InnoValor.
Financial crime risk management innovator Featurespace will be helping Enfuce combat fraud and money laundering courtesy of a newly announced partnership. Enfuce, a financial services firm based in Finland, will use Featurespace’s ARIC Risk Hub to enhance its ability to protect its customers from fraud and financial crime.
“Our clients deserve industry-leading services that allow them to freely and fully concentrate on the success of their core business, without worrying about ever-evolving fraud,” Enfuce co-founder and chair Monika Liikamaa said.
ARIC Risk Hub offers real-time transaction monitoring for fraud and financial crime, enabling institutions to identify and act against anomalous and potentially dangerous behavior as it occurs. The technology also reduces the number of false positives by as much as 70%, keeping anti-fraud processes efficient. Featurespace introduced its fraud-fighting technology to Finovate audiences at FinovateEurope 2016.
Here is a round up of recent news from our Finovate alumni.
Sezzleunveils new logo along with its first annual report.
Flybitsexpands its executive team in New York, Toronto, the U.K., and Dubai.
Yseop and Automation Anywhere join forces to scale intelligent automation.
Lighter Capitalappoints Kevin Fink at CTO and Patricia Elliott as CSO.
InCommlaunches Roblox gift cards in France and Germany.
Finovate Alum Features and Profiles
Revolut’s $500 Million Round Boosts Valuation to $5.5 Billion – Global financial platform Revolut has secured its place as the U.K.’s most valuable fintech.
Dealing with Deepfakes in Fintech – The fintech industry is ripe with security firms, such as iProov, that use AI to combat both video and audio deepfakes with anti-spoofing technologies.
Envestnet | Yodlee Acquires Indian Data Aggregator FinBit.io – Envestnet | Yodlee has acquired another asset in its strategy to further grow and develop its data aggregation and analytics business.
Meet Sonect: Cash Network Builder, Finovate Newcomer, Best of Show Winner – What’s better than having a large pizza with all your favorite toppings delivered to your front door? How about a side order of cash, saving you a trip to the ATM or bank branch?
Azimo Taps Ripple for Cross-Border Payments to the Philippines – Fueling these payment transfers is Ripple’s On-Demand Liquidity (ODL) solution that uses XRP to source liquidity and complete money transfers within three seconds.
Lendio Lands $55 Million to Match Small Businesses with Lenders – The investment more than doubles the company’s previous funding, bringing its total to $108.5 million.
SheerID Expands Identity Marketing Platform – The move enables brands to identify and acquire new customers across the globe.
Phone-based fraud prevention company Pindropclosed a Series D funding round today valued at $90 million, bringing the Atlanta-based company’s total funding to almost $213 million. Pindrop is not disclosing its valuation, but did say that it is “much higher” than the $600 million it was valued at after its $75 million funding round in 2016.
Vitruvian Partners led the round. Strategic investors Allegion Ventures, Cross Creek, Dimension Data, Singapore-based EDBI, and Goldman Sachs also participated, along with existing investors, including CapitalG, IVP, Andreessen Horowitz, GV and Citi Ventures.
According to Vijay Balasubramaniyan, co-founder, CEO, and CTO of Pindrop, the company will use the investment to advance in consumer IoT and voice technology while strengthening its existing solutions. Specifically, the company outlined plans to boost its presence in Europe and Asia, citing investments from U.K.-based Vitruvian Partners, Singapore-based EDBI, and Japan-based Dimension Data.
“One of our key goals is to help leading high-growth companies like Pindrop grow in Europe and internationally,” said David Nahama, senior partner at Vitruvian Partners. “We are confident that Pindrop is poised for massive expansion given the company’s depth of engineering expertise, pioneering efforts in machine learning technology and patent portfolio.”
Pindrop will also use the funds to support research and development efforts into providing security solutions for voice-controlled smart devices, including Google Home, smart locks, and connected cars. “Voice is fast emerging as the next generation human user interface with wide consumer and commercial applications, yet security remains a major concern,” said Chu Swee Yeok, chief executive and president of EDBI. “Pindrop’s world class AI voice security technology will be a significant enabler for wider voice UI adoption, beyond call centers.”
Founded in 2011, Pindrop debuted its Phoneprinting technology at FinovateFall 2012 in New York. The technology detects 80% of fraudulent calls into call centers and protects “hundreds of millions” of calls annually. Pindrop is working with eight of 10 of the largest banks as well as the five of the seven largest insurance companies in the U.S. Overall, the company protects more than 200 million consumer accounts and has stopped more than $350 million in voice-based fraud attacks this year.
Upserve (formerly Swipely) releases newest point-of-sale device, Upserve POS, now available for Android.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Pindroplaunches new risk-based authentication solution for call centers, Pindrop Express.
NCR and Tata Consultancy Services (TCS) announce strategic alliance.
PayPalacquires Hyperwallet for $400 million in cash.
Hancock Whitney Bank picksEnvestnet platform to support its broker-deal and trust businesses.
U.S. Bank partners with FutureAdvisor to develop Automated Investor, a digital wealth management tool.
doxohonored as Gold Stevie Award Winner in 2018 American Business Awards.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Voice security and authentication innovator Pindrop Security will provide fraud detection solutions for Bank of the West. The San Francisco, California-based financial services company with more than $89 billion in assets will leverage the security specialist’s technology to identify and mitigate a variety of cyberthreats including caller ID spoofing, voice distortion, and social engineering.
“Pindrop’s machine learning technology allows us to better know our customers and more effectively protect their assets,” Bank of the West’s Head of Enterprise Customer Experience Patricia Nowak said. “Using emerging technology to better serve our customers is a key initiative for Bank of the West.”
With more than 600 branches and offices in 23 states and digital channels, Bank of the West sees its partnership with Pindrop as part of its broader commitment to leveraging innovative technology to provide customers with a unique and secure experience. In Pindrop, Bank of the West will enhance its ability to proactively defend against fraud while maintaining a seamless customer journey over the voice channel.
“Bank of the West will see an improved customer experience with the implementation of our solutions,” SVP of Product for Pindrop Security Scott Rose said. “These results are made possible by Pindrop’s machine learning technology, which enables improved fraud detection and delivers value to the customer from the very first time they contact the bank.”
Founded in 2011, Pindrop Security demonstrated its Fraud Detection System at FinovateFall 2012. Its anti-fraud and authentication solutions – Pindrop Protect and PindropPassport, respectively – leverage the company’s Phoneprinting, Toneprinting, and Deep Voice Biometric Engine technologies to provide call centers with protection against both known cybercriminals as well as suspicious, atypical behavior that could indicate fraudulent activity.
This spring, the company announced that it would provide its Phoneprinting technology to U.K.-based, online retailer Shop Direct to help the company improve customer service and fight fraud. Also earlier this year, Pindrop teamed up with voice solutions provider Aeriandi to make its phone authentication and anti-fraud technology available via Aeriandi’s cloud-based voice platform.
With more than $122 million in funding, Pindrop Security includes Andreessen Horowitz, IVP (Institutional Venture Partners), and CapitalG among its investors. Co-founder Vijay Balasubramaniyan is CEO and CTO.
LendKeynames Lewis Goldman Chief Marketing Officer.
VyStar CU leverages technology from Fiserv to power its mobile banking app.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Update 4/2: It appears as if Pindrop got started on April Fool’s fun a little early this year. If you missed the joke, the company’s website still features their “latest biometric “solution.”
If you felt the urge to check the date to make sure today was not the first of April when reading the news of Pindrop’s latest biometric breakthrough, don’t worry. You’re probably not alone.
FinTechFuture’s Antony Peyton reports that the Atlanta-based anti-fraud and authentication specialist has unveiled Tongueprinting, a technology that analyses every person’s unique tongue as its newest biometric engine. FinTechFutures is Finovate’s sister publication.
The idea is for Tongueprinting to stop fraudsters from taking over legitimate accounts by spoofing the call centre with automated bots, social engineering, and knowledge-based authentication questions. Tongueprinting will also help companies build a “frictionless customer experience that are fun, taste good and are easy as a lick of the tongue”.
Vijay Balasubramaniyan, CEO and cofounder, Pindrop, said: “Tongueprinting not only adds an extra layer of security and authentication, it increases the opportunities to generate additional antibodies leading to a healthier user over time.”
According to the firm, the technology analyses thousands of tiny bumps called papillae, as well as factors such as shape, texture, size, spacing of buds and the behaviour of the lick.
Pindrop said it takes “only seconds” – lick your phone, and authentication is achieved. The tongue “lives in your mouth” (we know), and is a “protected unit”, that is safe from external elements avoiding challenges facing other biometrics like frostbite, pink eye and laryngitis.
The firm also cited research by scientists at the University of Arizona, which found that cell phones carry ten times more bacteria than most toilet seats.
Pindrop research shows that licking your phone on average 47 times a day to unlock it, reduces the build-up of bacteria and “ultimately leads to healthier phone owners”.
The company was founded in 2011 and is venture-backed by Andreessen Horowitz, Citi Ventures, Felicis Ventures, CapitalG, GV, and IVP. Pindrop demonstrated its Fraud Detection System at FinovateFall 2012.
Thomson Reuterscollaborates with Salesforce to help fight financial crime.
World Finance Magazine awardsTemenos “Best Islamic Banking & Finance Software Solution” at 2018 Islamic Finance Awards.
Klarna and MyOnlineStore partner up to offer all-in-one online commerce solution.
Pindrop to provide Phoneprinting for online retailer Shop Direct.
St. Paul FCU teams up with Insuritas to launch member-owned, digital insurance agency.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
In a statement on the homepage of the Oxford, U.K.-based company, Aeriandi highlighted how Pindrop’s Identity Assessment Engine provided call center agents with a quick – under 30 second – assessment of the risks of an incoming call. In addition to a risk score, agents are also provided custom instructions for additional authentication when necessary. “This process allows agents to quickly and easily assess the true identity of callers, using a single interface,” the statement read. “Those deemed to be high risk are subjected to more stringent security checks, while genuine callers have a smoother experience as a result of less security screening each time they call.”
Pindrop’s Identity Assessment Engine relies on the company’s Phoneprinting technology. This technology analyzes more than 1,300 different features of an audio call to determine actual device type, geo-location, carrier and more to create a distinct telephony profile. Phoneprinting provides more than ANI/CLI validation, and offers universal coverage against and anomalous behavior detection of both repeat fraudsters and first time callers.
Recently profiled in Forbes.com, Pindrop began the year with the launch of its deep neural network-powered biometric engine, Deep Voice. The company said that the new technology, which provides voice ID, more than triples its addressable market from $2.5 billion to $7.8 billion. “Our newly patented Deep Voice engine is creating new opportunities for Pindrop as we see voice eating all other interfaces,” Pindrop CEO and co-founder Vijay Balasubramaniyan explained. He said the addition of Deep Voice enabled Pindrop to offer a voice identity platform for enterprises “looking to reimagine the customer experience as voice becomes the dominant interface of choice.”
Pindrop demonstrated its Fraud Detection System at FinovateFall 2012. The company, which is headquartered in Atlanta, Georgia, announced last month that its antifraud solution had helped PSCU block $1 million in fraud in the first month of deployment. PSCU is the first credit union service provider to use Pindrop’s technology, having taken up the security specialist’s platform last year. PSCU Chief Risk Officer Jack Lynch called Pindrop’s solution “an essential step” toward its goal of providing “industry-leading fraud prevention and data protection” for members.
Pindrop has raised more than $122 million in funding. The company includes Google Capital, IVP (Institutional Venture Partners), and Andreessen Horowitz among its investors.
PayU, Kreditechto offer cardless EMI option of Rs 1 lakh for online purchases.
Lendio franchise announced in South Charlotte region.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.