Neobank IppoPay Buys Tutelar To Boost Risk Management

IppoPay, a neobank startup, has bought Tutelar, an AI-enabled risk management startup, a press release said.

The deal went forward for an undisclosed amount. Tutelar’s services will aid IppoPay in stopping fraud in the payments space.

Tutelar was founded this year, and builds fraud detection products for the online payment segment, helping banks and other such institutions make safer payments. It offers products for risk-free onboarding, dispute resolutions, KYC fraud detection, transaction fraud detection and misselling prevention.

Founder Pradeep Kumar said the company has a vision to “to improve reporting and control of payments fraud across industries and misselling especially affecting banks and financial intermediaries.”

“Tutelar is an important addition to our infra-stack. KYC and transaction fraud detection and risk management is a very critical problem that RBI, NPCI and the industry at large are trying to address. The acquisition of Tutelar is an important constituent in fighting off against fraud in the payments space,” said Mohan K, CEO of IppoPay.

Fraud has been a prevalent issue for the entirety of the pandemic, with the risk of fraud increasing in the last few years because of the quick move of many essential services and finances to digital means.

Read more: Fraud Prevention FinTech Alloy Nets $52M on $1.55B Valuation

One company working on those issues is Alloy, which helps banks and FinTechs with identity decisioning and threat selections with API service and SaaS, which has a $1.55 billion valuation, having just raised $52 million lately.

There has been more demand for ways for monetary establishments to get more “good” clients while weeding out the dangerous ones, which has added demand for Alloy. It also comes with fraud threats have become more advanced, with “skilled” manufacturers trying to use stolen identities to steal.

Alloy has said its mission is to fight fraud and help banks and FinTechs keep compliant in onboarding new clients, helping purchases pull in buyer data, conventional credit score bureau knowledge and better integration.