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Deutsche Bank and Visa are joining forces to use artificial intelligence to block fraudulent transactions and save billions of dollars.  

By combining vast swathes of data with fine-tuned risk management models, banks can accelerate legitimate transactions and flag suspicious ones, striking a balance between customer ease and safety. 

Deutsche Bank is baking an automated fraud detection system from Visa-owned Cybersource into its ecommerce solution for merchants. The tool automatically calculates a risk value for each individual transaction and will block those that meet a pre-determined risk level as potential fraud.  

The system, called Decision Manager, prevented the equivalent of $22 billion+ in potential fraud in 2021, according to Visa. By adding the tool to its platform, DB aims to make its online retail offering more helpful to existing clients (or more attractive to potential ones).  

“We combined the payment expertise of Deutsche Bank with the data and advanced technologies from Visa’s Cybersource for risk management and reduced the complexity of payment acceptance for our clients,” DB spokesperson Heinrich Froemsdorf told Insights Distilled, adding that it’s an optional value-added service that clients can choose depending on their own in-house fraud-risk management expertise.   

Along with Visa’s Cybersource, a slew of fintechs provide AI for fraud detection, including NetGuardians, Feedzai, and Featurespace, an Insight Partners’ portfolio company.