Risk Insights & Advisory Fintech Spotlight: Q2 2024

Introduction

Welcome to the "Risk Insights & Advisory Fintech Spotlight: Q2 2024," a comprehensive guide contributed by Datos Insights, exclusively for Darwinium. This guide is part of a quarterly series designed to shed light on emerging fintech vendors specializing in fraud prevention, Anti-Money Laundering (AML), and cybersecurity.

Overview

In today's rapidly evolving financial landscape, staying ahead of risks and leveraging innovative solutions is crucial. The "Risk Insights & Advisory Fintech Spotlight" series aims to provide detailed insights into a curated selection of fintech vendors who are making significant strides in these critical areas. Each report focuses on vendors that not only offer unique and robust solutions but also bring innovative approaches to tackling the prevalent challenges within the fraud, AML, and cybersecurity sectors.

Purpose and Scope

This guide includes several key sections designed to provide a thorough understanding of the fintech landscape, a deep dive into Darwinium, a solution summary, product roadmap and key value proposition.

• Risk Insights & Advisory Fintech Spotlight Solution Domains
• Risk Insights & Advisory Fintech Category
• Q2 2024 Profiled Risk Fintech Firms
• Darwinium Summary
• Darwinium Product Roadmap
• Key Value proposition and Market Challenges

Each section and figure is meticulously crafted to offer valuable insights and actionable information about the fintech vendors' capabilities and strategic directions.

Darwinium's Pitch

Darwinium offers a cyber-fraud fusion platform uniting digital security with fraud prevention to protect every customer journey from online fraud, scams, and abuse. It seeks to address the accelerating and often competing challenges of an increasingly complex fraud landscape fueled by AI in a digital business ecosystem.

Organizations typically operate in siloed teams, and many fraud and security functions lack the necessary resources or tools to spot and respond to evolving threats quickly. At the same time, the regulatory and consumer landscapes are pushing toward more privacy and securityconscious outcomes, making it harder for financial services firms, merchants, and other businesses to verify users online.

Darwinium combines fraud analytics and intelligence, elevating firms’ ability to decision and act on what they see in real time. Security and fraud teams gain both visibility and context into user behavior across their digital estate, combined with the ability to act on trusted and risky interactions without being tied to engineering resources or lengthy release cycles.

Two key innovations set Darwinium apart from many of its peers. Firstly, it has created behavioral identification, using digital signatures for devices and behavioral biometrics. Secondly, it allows businesses to take security and fraud decisions to the perimeter edge for simpler, faster security and fraud protection.

Digital Signatures: As devices (particularly mobile) become more homogeneous over time, re-identifying them using fingerprinting is increasingly challenging. To verify a transaction or behavior in privacy-oriented settings, Darwinium introduced the concept of “similarity.” When fingerprinting a device, rather than just capturing explicit information the device has (for example, the operating system, applications, network settings), Darwinium also queries a complex range of subtle device attributes to assign a “similarity” score that compares the current interaction to previous interactions to evaluate how unique the device is and the likelihood that it is a returning device.

• The device similarity match can be used to make real-time, risk-based decisions based on what customers are doing online.
• The probability score can be layered with behavioral biometrics, parsing out mouse/keyboard/touch interactions, viewing them as unique, standalone attributes rather than related steps in a process.
• Capturing this data as a digital signature enables Darwinium to find likely identities, whether they are trusted users or potential threats, and detect correlations and discrepancies relating to the behavioral biometrics of a user.

Innovations on the Edge: In addition to providing traditional deployment methods such as JavaScript tags and a mobile software development kit (SDK), Darwinium offers businesses the opportunity to deploy its solution through a single integration at the network edge via their Content Delivery Network (CDN). This enables businesses to immediately get full coverage and context for every user interaction across a digital journey without having to navigate organizational complexities with engineering teams. Organizations can configure fraud prevention in much the same way that they configure their web application firewall (WAF), defining end points they need to protect and mappings for in-stream content and running their risk model. Operating at the network edge enables deeper insights into the network, uplifting the client’s ability to monitor and observe new touchpoints without the pain of core application release cycles and human resources. Encrypted customer data can be stored within the organization's own infrastructure for improved privacy and control.