Galileo Launches Instant Account Verification and Machine Learning Risk Score to Secure Financial Transactions Amid Escalating Cyber Threats

Rhea-AI Summary

Galileo Financial Technologies, a subsidiary of SoFi Technologies, Inc. (NASDAQ: SOFI), has launched two new tools to combat fraud in digital financial transactions: Galileo Instant Verification Engine (GIVE) and Transaction Risk GScore. These innovations address the increasing cyber threats faced by financial firms, with 63% reporting a rise in fraud.

GIVE provides real-time verification of external bank accounts and ownership, offering instant account and identity verification, account risk profiling, and a seamless user experience. It significantly reduces verification times and customer drop-off rates. GScore uses machine learning to assess card transaction risks in real-time, enabling swift fraud detection and response.

Both tools are designed for scalability and integration with existing systems, offering financial institutions, fintechs, and businesses enhanced control over transaction validity and fraud prevention measures.

Positive

• Launch of two new fraud prevention tools: Galileo Instant Verification Engine (GIVE) and Transaction Risk GScore
• GIVE provides real-time verification of external bank accounts and ownership
• GIVE reduces verification times from days to seconds
• GIVE decreases customer abandonment rates from nearly 50% to as low as 1%
• GScore uses machine learning to assess card transaction risks in real-time
• Both tools are scalable and integrate seamlessly with existing systems

Negative

• None.

Insights

Financial Technology Expert

Galileo's launch of GIVE and GScore represents a significant advancement in fintech fraud prevention. These tools address critical pain points in the industry, where 63% of financial firms reported increased fraud. The real-time verification capabilities of GIVE could drastically reduce account verification times from days to seconds, potentially lowering abandonment rates from 50% to as low as 1%. This efficiency gain could translate to substantial revenue retention for fintech companies.

The integration of machine learning in GScore for transaction risk assessment is particularly noteworthy. It allows for dynamic risk profiling, which is important in today's rapidly evolving cyber threat landscape. By providing a scalable solution that can grow with businesses, Galileo is positioning itself as a key player in the fintech infrastructure space. This move could potentially increase Galileo's market share and, by extension, benefit SoFi Technologies (NASDAQ: SOFI) as its parent company.

Cybersecurity Analyst

The introduction of GIVE and GScore is a timely response to the escalating cyber threats in the financial sector. These tools offer a multi-layered approach to security, combining instant account verification, identity verification and risk profiling. This comprehensive strategy is important in combating sophisticated fraud attempts.

The real-time nature of these solutions is particularly valuable. In cybersecurity, speed is often the difference between preventing and falling victim to an attack. By reducing verification times to seconds, financial institutions can significantly reduce their exposure to potential fraudulent activities. Moreover, the machine learning component in GScore allows for continuous improvement in fraud detection capabilities, adapting to new threat patterns as they emerge. This proactive approach could potentially save financial institutions millions in fraud-related losses.

Customer Experience Specialist

From a customer experience perspective, GIVE and GScore offer a delicate balance between security and user convenience. The seamless user experience provided by GIVE, which doesn't require customers to input credentials for external accounts, is a significant improvement over traditional methods. This frictionless approach could lead to higher customer satisfaction and loyalty.

The potential reduction in abandonment rates from 50% to 1% is particularly impressive. It suggests that these tools could significantly improve conversion rates for financial services, leading to increased customer acquisition and retention. Furthermore, the real-time nature of these solutions means customers can enjoy faster service without compromising on security. In an era where customers expect instant gratification, this could be a major competitive advantage for financial institutions adopting these technologies.

New tools deliver real-time fraud detection for fintechs, banks and businesses and maintain frictionless account experiences for customers

SALT LAKE CITY--(BUSINESS WIRE)-- Galileo Financial Technologies, a leading financial technology company and a subsidiary of SoFi Technologies, Inc. (NASDAQ: SOFI), is delivering fintechs, banks and businesses new ways to fight fraud with the launch of Galileo Instant Verification Engine (GIVE) and Transaction Risk GScore.

As digital transactions surge and cyber threats evolve, these tools offer fintechs, financial institutions and businesses advanced real-time fraud detection and risk management capabilities, addressing an industry in which 63% of financial firms reported an increase in fraud, with digital channels contributing to half of the total fraud losses.

Galileo Instant Verification Engine

Galileo Instant Verification Engine (GIVE) provides real-time verification of external bank accounts and ownership. Whether used as a standalone product or integrated with the Galileo Payment Risk Platform (PRP), GIVE delivers real-time insights that help businesses prevent fraud by quickly verifying account existence, status, and ownership before processing transactions.

GIVE is further enhanced by its integration with the Galileo Payment Risk Platform, which uses a sophisticated Transaction Decision Rules Engine. This engine applies customizable models, rules and profiles to each transaction, allowing for real-time, automated fraud prevention decisions tailored to the specific needs and risk appetite of each business.

The key benefits of GIVE are:

• Instant Account Verification: GIVE instantly verifies external bank account information, confirming its existence, status, and risk signals. This enables Galileo clients to make informed decisions when linking accounts or processing transactions, such as determining account status and risk associated with the account.
• Instant Identity Verification: GIVE ensures that only authorized individuals can transact by verifying the ownership of external bank accounts. It matches the account holder’s name and personal information — such as social security number (SSN), date of birth, and address — against the provided owner details, which is particularly useful for preventing identity fraud.
• Account Risk Profiling: By leveraging machine learning, the Galileo Instant Verification Engine generates risk scores that assess the probability of ACH returns and non-sufficient funds (NSF) issues, providing a comprehensive view of account reliability. This enables businesses to predict funding issues and take proactive measures to prevent them.
• Seamless User Experience: GIVE supports “me-to-anyone” and “anyone-to-me” use cases without requiring customers to input their credentials for external accounts, ensuring a frictionless and secure transaction process.

The Galileo Instant Verification Engine significantly reduces the risk of fraud by providing real-time verification of external bank accounts and ownership, cutting verification times from days to seconds. This minimizes customer drop-offs — reducing abandonment rates from nearly 50% based on a traditional method such as MDA (Micro-deposit Authentication) to as low as 1% — and delivers a smoother, more reliable customer experience across multiple channels, including ACH, FedNow, Wires and check deposits.

Transaction Risk GScore

Transaction Risk GScore is a machine-learning-based risk score that assesses the risk of card transactions in real time. By analyzing multiple data points, such as user behavior and transaction patterns, GScore enables financial institutions, fintechs and businesses to detect and respond swiftly to potential fraud, reducing losses and ensuring more efficient operations.

GScore supplements the existing enhanced capabilities in Payment Risk Platform by adding a layer of fraud signals while allowing the client to determine the risk appetite based on the multiple model responses. GIVE and GScore are designed with scalability in mind, ensuring they can grow alongside your business.

Whether transaction volumes increase or a company’s business expands into new markets, these tools provide consistent protection and seamlessly integrate with existing systems, minimizing disruption while maximizing fraud detection. This feature gives Galileo clients greater control over transaction validity, enabling them to fine-tune fraud prevention measures to meet their specific needs. GScore is available to clients using the Galileo Payment Risk Platform.

Why GIVE and GScore Matter

The Galileo Instant Verification Engine and GScore empower financial institutions, fintechs and businesses to navigate the complexities of an increasingly digital financial landscape, reducing fraud, improving operational efficiency, and delivering a seamless customer experience across multiple payment channels.

"These tools represent the future of secure financial transactions," said David Feuer, Chief Product Officer at Galileo Financial Technologies. "By harnessing advanced machine learning and real-time data, we're setting a new standard for how businesses safeguard their customers and their operations."

For more information on how to integrate these fraud prevention solutions, please visit
https://docs.galileo-ft.com/pro/docs/about-galileo-instant-verification-engine.

About Galileo Financial Technologies

Galileo Financial Technologies, LLC and certain of its affiliates collectively comprise a financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI) that enables fintechs, financial institutions, and emerging and established brands to build differentiated financial solutions that deliver exceptional, customer-centric experiences. Through modern, open APIs, Galileo’s flexible, secure, scalable and fully integrated platform drives innovation across payments and financial services. Trusted by digital banking heavyweights, early-stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning, tailored and differentiated financial products and more, across industries and geographies.

©2024 Galileo Financial Technologies, LLC. All rights reserved.

Galileo Financial Technologies, LLC is a technology company, not a bank. Galileo partners with many issuing banks to provide banking services in North and Latin America.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910452642/en/

Katie Boyless

The Fletcher Group

(404) 791-8245

katie@fletchergroupllc.com

Source: Galileo Financial Technologies

FAQ

What new fraud prevention tools has Galileo Financial Technologies launched?

Galileo Financial Technologies has launched two new fraud prevention tools: Galileo Instant Verification Engine (GIVE) and Transaction Risk GScore.

How does GIVE improve the account verification process for SOFI?

GIVE improves the account verification process by providing real-time verification of external bank accounts and ownership, reducing verification times from days to seconds, and decreasing customer abandonment rates from nearly 50% to as low as 1%.

What technology does Transaction Risk GScore use to detect fraud for SOFI?

Transaction Risk GScore uses machine learning to assess the risk of card transactions in real-time, analyzing multiple data points such as user behavior and transaction patterns to detect and respond swiftly to potential fraud.

How do GIVE and GScore address the increasing cyber threats in financial transactions for SOFI?

GIVE and GScore address increasing cyber threats by providing advanced real-time fraud detection and risk management capabilities, helping financial institutions, fintechs, and businesses safeguard their customers and operations in an increasingly digital financial landscape.