The fraud prevention platform of Portugal’s Feedzai will be used by US-based Varo Money, which has obtained preliminary approval to become the first exclusively mobile bank in the United States.
The agreement between the two companies, which is announced today, provides for the use of the risk engine designed by Feedzai based on artificial intelligence in the process of expansion of Varo Money, in this case through mobile banking, whose operations are carried out only through of an application installed on the smartphone.
Feeduai’s co-founder and CEO, Nuno Sebastião, characterizes Varo as “the leader in the transformation of digital banking” and says the two companies have similar approaches to technologies that provide “what’s best for customers.”
Varo Money, which was founded in 2015 with the “social mission” of “lowering the cost” of financial tools, awaits final authorization from the banking regulator, Office of the Comptroller of the Currency, to become a reach bank national level in the United States.
The technology partnership with Feedzai comes at a time when it is building its infrastructure to deliver “more performance” than traditional banks, according to the company, while promising end customers a “smart” banking platform exclusively through application mobile.
The idea is to ensure the market and regulator that the infrastructure used to enable the use and opening of accounts has an anti-fraud and anti-fraud component.
“Customer safety and experience is a top priority at Varo,” said the company’s CEO, Colin Walsh.
The supervisor gave preliminary authorization to the application for the creation of Varo Bank in September 2018, something that Colin Walsh considered a “historic moment” in the financial sector.
Among the products promoted by Varo are the opening of accounts with no monthly maintenance costs and no collection of transactions abroad.
Feedzai technology will be used based on cloud deployment.
The company led by Nuno Sebastião had also announced in December 2018 that it had signed a contract with Citi to provide its risk monitoring technology based on artificial intelligence.