Why Canapi is Leading Neuro-ID’s $35M Series B

Trust is Everything

What does it mean to be “human” in a world that increasingly lives online, where relationships are often started without the benefit of an in-person interaction? Trust has always been a critical component of financial services, and business in general. Take credit for example. In the early days, credit was largely based on character. A lender would make a judgment call on a customer, then proceed to visit stores asking if the person was paying his bills. When asked, a common reply would look something like… “he usually pays on time, comes from a great family and our kids go to school together.” Eventually, these interactions laid the groundwork for what became credit scoring – making the process more impartial, but not entirely.

Fast-forward to today. In the wake of the COVID-19 pandemic, the way people interact with each other and businesses is increasingly online first. To date, we’ve managed the great digital migration by leveraging physical attributes about someone, included address, date of birth and social security number, amongst others. While these attributes are critical in determining identity, they lack the “human” element that drives trust. It remains difficult to ensure people are who they say they are. So what do you do? You ask for more information in an effort to better understand the person interacting with your website or brand.

The problem with this approach is that it comes at the expense of delivering a seamless customer journey. The more information you ask for, the more friction you create for your customers. As a result, most onboarding flows remain too cumbersome, and less than 10% of people that start a digital journey finish it. Companies today have little to no visibility into what percentage of good customers they are turning away because of high-friction onboarding processes and over-engineered fraud stacks. This is why we are so excited to lead Neuro-ID’s $35M Series B financing round!

Behavioral Analytics is the Missing Piece

Neuro-ID’s next-generation analytics platform offers all digitally-enabled brands a one-stop shop for measuring user intent and experience analytics at scale.  Through a lightweight JavaScript integration, Neuro-ID’s Human Analytics® platform can see a customer’s “digital body language” by measuring the way they type, swipe, and click in digital experiences.  The platform leverages real-time behavioral data to help companies better segregate genuine customers from bad actors.  Neuro-ID’s blue-chip customers — including industry leaders like Affirm, Square, and Intuit, among others – are seeing significant reductions in fraud (up to 35%!) and wide-ranging use cases across the organization that span customer experience, customer analytics and product design.

The most exciting application of Neuro-ID’s technology lies in its ability to help companies better acquire and serve their genuine customers. For the first time, companies can see people that have been erroneously declined, while providing insights into which parts of an onboarding flow introduce the most friction. Why is this so exciting? Research suggests the losses from false declines is nearly 70x more than losses from fraud itself.

Whereas other event-based analytic tools help a company understand when a user dropped off, Neuro-ID can dive into each user interaction and help you understand the root cause of a drop-off. Neuro-ID also works with first-time applicants; there is no need for a customer to interact with you dozens of times before correlating their behavior and deriving business value.

Furthermore, by tapping into crowd-level behavior, companies can leverage critical insights that have been inaccessible until now. This new view of customer behavior opens the ability to improve conversion and drive revenue, all while identifying fraud rings and stopping bot attacks.

Installation of Neuro-ID requires minimal configuration to start collecting data. Companies can get up and running with just one lightweight JavaScript installation.

Any company that addresses high-volume digital and automated decisions should consider adding Neuro-ID to their technology stack. We couldn’t be prouder to partner alongside Jack Alton, the rest of the Neuro-ID team and our friends at Fin VC and TTV on this next leg of growth!

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