Deep Labs Featured in Finextra on AI Used to Build Persona-Based Risk Systems

Deep Labs uses AI to build “persona-based” risk systems, has secured $16 million in commitments from a group of fintech investors. Gunnar Overstrom, partner at Corsair Capital, Serendipity Capital and Gramercy Ventures, led the investment.

Deep Labs dynamic adaptive risk and propensity profiles for users of products and services – analysing whether behaviour is typical or unusual and how that behaviour changes as it “moves through space and time”.

For example, Deep Labs can pick up on how people use their devices differently during the morning and at night or even depending on the weather.

The technology is used by Deep Lab clients to tackle things such as account takeover, anti-money laundering, false declines, marketing decisioning, identity, and friendly fraud.

Visa and American Express are among its early customers and Mastercard is a partner.

Scott Edington: “We built Deep Labs with the objective of moving the world of decisioning from a static, one dimensional process to a multi-dimensional one that uses the most modern computing and mathematical methods available.”

Separately, Deep Labs has been picked to participate in Goldman Sachs’ first Launch With GS Black and Latinx Entrepreneur Cohort. As one of 14 members of the cohort, Edington will get an eight-week virtual experience with access to the bank’s resources and contacts.
 

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Goldman Sachs Selects Deep Labs for Inaugural Program Launch

NEW YORK, May 14, 2020 — Goldman Sachs (NYSE:GS) has selected Deep Labs to participate in the first Launch With GS Black and Latinx Entrepreneur Cohort. This eight-week virtual experience will provide high-touch access and resources to a select group of U.S.-based Black and Latinx founders to fast-track their companies’ growth and build relationships with investors and industry experts.
 
Deep Labs CEO, Scott Edington will participate in virtual, customized 1-on-1 and sector specific workshops with Goldman Sachs leaders and will meet with industry-leading startup experts on topics ranging from legal considerations to cap table structure to marketing and branding.
 
“Deep Labs’ persona-based intelligence technology is transformative,” said Jemma Wolfe, Head of Launch With GS. “The Goldman team is excited to work alongside CEO Scott Edington in our first cohort as Deep Labs continues to scale.”
 
The Black and Latinx Entrepreneur Cohort is a part of Launch With GS, Goldman Sachs’ $500 million investment strategy grounded in the belief that diverse teams drive strong returns. Through Launch With GS, Goldman Sachs aims to increase access to capital and facilitate connections for women, Black, Latinx and other diverse entrepreneurs and investors.
 

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Deep Labs’ Persona-Based Intelligence Technology Featured in American Banker

By Penny Crosman, 14 May, 2020 

Deep Labs, has $16 million in commitments from a group of financial technology investors that includes Serendipity Capital, Gramercy Ventures and Gunnar Overstrom.

The company’s technology analyzes transactions in context, taking into account factors such as someone being home with his or her family versus in the office or traveling for work, said founder Scott Edington.

That analysis is applied to transaction authentication and authorization, digital marketing, fraud detection, anti-money laundering, account onboarding and identity verification.

Early customers include global payments networks Visa and American Express, Clear and the federal government. Mastercard, NICE Actimize, Booz Allen Hamilton and General Dynamics Information Technology are among Deep Labs’ partners.

Deep Labs uses data gleaned from behavioral biometric systems such as BioCatch and Secured Touch, facial recognition systems, iris recognition systems, device identification and identity and transaction data. Its software is meant to help companies make decisions, using those different data points as signals. It can be used to detect fraud, authenticate new users, and authorize transactions.

“It’s quite easy to defeat fraud if all you want to do is simply decline every single transaction … but that introduces friction to the consumers and leads to things like card abandonment and grinds commerce to a halt,” Edington said.

“There’s a very difficult balancing act that practitioners have to do in terms of limiting fraud but also making sure you’re limiting what we call false declines, which are transactions that should have been approved but were declined,” he added.

Clients use Deep Labs’ software to bring on new customers, detect fraud and make marketing decisions.

“If I know what persona I’m expecting from a customer, I can figure out how I might want to, from a loyalty program perspective, serve him something that would be appealing to him,” Edington said.

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Deep Labs Announces $16 Million Investment to Drive Next Phase of Growth

SAN FRANCISCO, CA.May 14, 2020 — Deep Labs Inc., a leader in artificial intelligence and the creator of patented persona-based, context-aware decisioning and risk systems, today announced that it has closed the initial tranche of a $16 million commitment from a group of leading financial technology investors.

The investor group includes highly experienced financial services investors and executives, led by Gunnar Overstrom, Partner at Corsair Capital, Serendipity Capital and Gramercy Ventures. In connection with the investment, Overstrom and the Founding Partner of Serendipity Capital, Robert Jesudason, have joined the Board of Directors.

Deep Labs, founded in 2016 by Chief Executive Officer Dr. Scott Edington together with experienced digital payments and signal experts, deploys a suite of proprietary solutions for transaction authentication and authorization. The Company is best known for leveraging the power of persona-based intelligence to improve businesses’ ability to safely integrate customer behavior into their operations, increasing authentication accuracy and reducing susceptibility to cybercrime. 

“We are pleased to welcome such a high-caliber group of investors as we expand Deep Labs, add new customers and partners around the world, and continue to hire the best and brightest engineers and professionals,” said Dr. Edington. “Our new investors have a true understanding of our business, our goals and our long-term strategy, and we look forward to benefitting from their unique expertise and experience.”

Dr. Edington continued, “We built Deep Labs with the objective of moving the world of decisioning from a static, one dimensional process to a multi-dimensional one that uses the most modern computing and mathematical methods available. With next-generation, persona-based intelligence that leverages true context-aware computing, our innovative products represent a new way for businesses and their customers to understand how an actor’s behavior changes as it moves through time and space. I believe we have the team, the technology and the financial and strategic support to redefine authentication and authorization.”  

Deep Labs’ platform enables clients to deliver better customer experiences, thereby increasing revenue while maintaining acceptable risk levels and reducing true fraud. Clients and partners ranging from leading financial services firms and governments to retailers rely on Deep Labs’ products. The Company’s early customers include global payments networks Visa and American Express, authentication leaders such as Clear, and the U.S. Government. Mastercard, NICE Actimize, Booz Allen Hamilton, and General Dynamics Information Technology are among the Company’s partners.

“Deep Labs is a critical partner for Mastercard, particularly as we focus on enabling hyper-personalized services for citizens around the world,” said Miguel Gamiño Jr., Executive Vice President for Global Cities at Mastercard. “By bringing together Deep Labs’ unique technology with our platforms, we are able to enhance our offering and provide greater access to city services, identification, disbursements and secure payment capabilities. We are excited to continue our collaboration with the Deep Labs team.”

Advection Growth Capital served as merchant bank to Deep Labs and Rosenblatt Securities served as the investment bank advising the Company. Troutman Sanders LLP served as legal counsel to the Company.

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Deep Labs Featured in Biometric Update on Behavioral Biometrics and Persona-Based Security Intelligence

A number of companies on the market today are exploring behavioral-based security, which relies on an individual’s unique behavior patterns such as the way a person types, how hard the buttons are pressed, how quickly a person holds a device for secure and more accurate authentication. They argue it is superior to the already popular authentication methods that leverage biometric facial or fingerprint recognition, because behavioral-based security performs continuous authentication by analyzing real-time interaction with a device.

Deep Labs, a Silicon Valley-based startup founded in 2016, develops artificial intelligence security tools for banks and credit card companies. The company uses artificial intelligence and machine learning to leverage the power of behavioral biometrics to develop the concept of persona-based intelligence. According to its CEO and co-founder, Dr. Scott Edington, behavior-based security has reached a higher level of sophistication, because it would be nearly impossible for fraudsters to fake how a person types their password or holds their phone. If a user’s phone is used even in a slightly different way, the action is immediately flagged.

Read the full interview here.

Deep Labs Featured in Digital Journal on Persona-Based Intelligence™ and Behavior-Based Security

How someone holds their phone is becoming a criteria for securing their identity from hackers. If you usually hold it with your right hand, and a left-handed hacker is trying to gain access to your phone, they can be stopped because of that difference.

According to the CEO of Deep Labs, Scott Edington, such activities are becoming part of a vastly improved behavioral-based security approach that is taking ID verification to new levels. Behavior-based security is starting to look much more at how users hold their phones, how hard they press the buttons, and how quickly they might type.

Digital Journal spoke with Scott Edington about how artificial intelligence and machine learning can help to create user ‘personas’, that red flag if your phone is being used even slightly differently than how you use it.

Read the full interview here.

Deep Labs Partners with NICE Actimize’s X-Sight Marketplace Ecosystem

Helping financial services organizations keep up with a changing market landscape, NICE Actimize, a NICE business (Nasdaq: NICE) and leader in Autonomous Financial Crime Management, today announced that three new technology partners have joined the fast-growing X-Sight Marketplace, the industry’s first financial crime risk management-focused ecosystem. X-Sight Marketplace helps financial services organizations evaluate new point solutions and move to stay on top of a challenging regulatory and criminal environment. The recent additions include Boku Identity, a leading end-to-end identity solution provider; Deep Labs, specialists in applying persona-based artificial intelligence to assess risk and reduce fraud and identity theft; and TeleMessage, which provides state-of-the-art cloud and on-premises messaging solutions.

Deep Labs offers a suite of products that leverages persona-based dynamic adaptive risk and propensity profiles to solve a range of use cases including account takeover, anti-money laundering, false declines to marketing decisioning, identity, and friendly fraud. Deep Labs’ DeepIdentity® approach provides advanced identity verification solutions which, through risk-based decisioning, minimizes friction and enhances the consumer experience across numerous use cases, including identity verification, digital onboarding, authentication, and continually knowing the customer’s persona. “Our team of experienced payments and signals intelligence experts believe that persona-based intelligence is the next generation of true context-aware computing, and an important advancement in understanding and fighting many new types of fraud,” said Dr. Scott Edington, CEO and Co-Founder, Deep Labs. “Our team looks forward to bringing our industry-leading approach to the NICE Actimize X-Sight Marketplace.”

Read the full press release here.