arrow left facebook twitter linkedin medium menu play circle

CMFG Ventures Invests in DataVisor to Fuel Expansion into Credit Union Market

May 9, 2023

Firm’s investment supports credit unions’ growing need for proactive and real-time fraud solutions.

Madison, WISC. – May 9, 2023 – CMFG Ventures, the venture capital arm of CUNA Mutual Group, has announced a strategic investment in DataVisor, a global leader in online fraud detection and risk management for financial services and ecommerce, as they expand their services into the credit union market.

Credit unions experience various types of fraud involving applications, transactions and account takeovers. In fact, nearly 40% of Americans have been identity theft victims, leading to fraudulent applications at financial institutions. Resulting losses are often disguised as normal credit losses. 

Nevertheless, fraud costs for financial services and lending institutions are up 10% since 2020. Many legacy fraud solutions are dated, segmented, slow, and cost prohibitive for credit unions to implement. DataVisor provides an integrated, comprehensive fraud platform with real-time prevention and detection that can save credit unions time and money.

 “With increased adoption of real-time transactions, the necessity to respond to fraud threats with speed, agility, and better technology is imperative for credit unions to minimize fraud losses and deliver impeccable service to their members,” said Yinglian Xie, CEO of DataVisor. “We want to help credit unions deploy a modern fraud solution that delivers high return on investment and quickly detects and combats sophisticated fraudsters in a more cost-effective way.”

Powered by transformative AI and machine-learning capabilities, DataVisor enables proactive fraud detection in real time, with a 40-90% increase in detection versus traditional services. CMFG Ventures’ investment highlights an opportunity for credit unions to deploy more modern and innovative solutions to combat fraud.

NASA Federal Credit Union launched DataVisor’s platform in 2021. “We partnered with DataVisor to enrich our fraud-fighting capabilities with a scalable infrastructure,” said Doug Nahas, chief operating officer, NASA FCU. “They have exceeded our expectations and proven to be one of our most innovative partners. DataVisor’s team understands our business needs and are experts at extracting, categorizing, and modeling data. This has allowed us to replace a series of previous vendor fraud solutions with improved models and significant cost savings.”

CMFG Ventures sees the investment in DataVisor as a way to help more credit unions mature their fraud prevention strategies. “The shift toward digitization and real-time payments has amplified the need for credit unions to prioritize fraud solutions that are proactive and real-time,” said Mike Kraus, principal at CMFG Ventures. “This is evidenced by the National Credit Union Administration making fraud prevention and detection one of its supervisory priorities in 2023. We’re thrilled to invest in DataVisor, which offers innovative and leading technology that can help our credit union partners stay ahead of emerging threats.” 

About DataVisor
DataVisor is the world’s leading fraud and risk management platform that enables organizations to respond to fast-evolving fraud attacks and mitigate risks as they happen in real time. Its comprehensive solution suite combines patented machine learning technology with native device intelligence and a powerful decision engine to provide protection for the entire customer lifecycle across industries and use cases. DataVisor is recognized as an industry leader and has been adopted by many Fortune 500 companies across the globe.

About CMFG Ventures

CMFG Ventures, LLC is the venture capital arm of CUNA Mutual Group. CMFG Ventures houses two investment funds, one focused on strategic investments and partnerships to connect fintechs with credit unions and financial institutions, and one focused on early-stage investments in fintechs with diverse founding teams. Built on the principle of “people helping people,” CUNA Mutual Group is a financially strong insurance, investment and financial services company that believes a brighter financial future should be accessible to everyone. Through our company culture, community engagement, and products and solutions, we are working to create a more equitable financial system that helps to improve the lives of those we serve and our society. For more information, visit cunamutual.com.