Featurespace launches GenAI Large Transaction Model to combat fraud

By Gloria Methri

Featurespace has launched a Large Transaction Model (LTM) using Generative AI for the financial services and payments industry. TallierLTM™ is a large-scale, self-supervised, pre-trained model, designed to power the next generation of AI applications for the financial protection of consumers.

It gives fraud and financial crime professionals access to the generative Large Transaction Model, helping them differentiate between genuine consumers and bad actors.

“What OpenAI’s LLMs have done for language, TallierLTM™ will do for payments,” said David Excell, founder of Featurespace. “There is widespread concern about how deep-fakes and generative AI have been used to deceive consumers and our financial systems. We plan to reverse this trend by utilizing the power of generative AI algorithms to create solutions that protect consumers and make the world a safer place to transact.”

By analyzing billions of transactions, TallierLTM™ identifies hidden transactional patterns undiscoverable using current industry methods, enabling it to generate likely future consumer transactions. Insights are based on time sequencing, such as unusual spending patterns over a short period of time and patterns of behavior between a consumer and a merchant.

Financial institutions will be able to interact with TallierLTM™ via its embedding API, which is a data science accelerator that enables a consumer’s transaction history to be converted to a machine-readable feature vector. It creates a unique ‘behavioral bar code,’ providing a comprehensive representation of a consumer’s transactional behavior without revealing any personally identifiable information.

Dr. David Sutton, Featurespace’s Chief Innovation Officer said, “By adding TallierLTM™’s feature vectors to the inputs of an industry-standard fraud model, we have seen improvements of up to 71% in fraud value detection. This will accelerate data science teams’ ability to level up their model performance and realize the value of machine learning investments more quickly.”

Featurespace plans to introduce the TallierLTM™ service with its longstanding partner TSYS, a Global Payments company.

“TSYS and Featurespace have a long track record of co-innovating to deliver industry-leading technologies and solutions that help financial institutions provide secure, seamless experiences at scale,” said Dondi Black, executive vice president and chief product officer for TSYS. “TallierLTM™ is the next transformative step, allowing us to unlock new insights and power new experiences for our clients around the world, further differentiating our capabilities with this new groundbreaking solution.”