BioCatch Tracks Significant Growth in Q3 Update

BioCatch, a provider of behavioral biometric technology for fraud detection, has reported 40 percent year-over-year growth in Annual Recurring Revenue (ARR) through Q3 2024. The growth comes amid increasing demand for behavioral analytics solutions in financial fraud prevention.

According to the company’s Q3 financial report, BioCatch added 31 new customers, bringing its total client base to 237 financial institutions. This expansion includes a new partnership with one of the world’s top 100 retail banks, increasing BioCatch’s presence among major financial institutions to 34 of the global top-100 banks.

The company maintained a 124 percent net dollar retention rate over the past 12 months, indicating strong customer retention. This follows BioCatch’s recent acquisition by Permira in a deal valuing the company at $1.3 billion.

In a significant Q3 development, BioCatch secured a global agreement with a European multinational bank while expanding its workforce to over 340 employees across 21 countries. The company has also strengthened its research initiatives through strategic partnerships with the Global Anti-Scam Alliance and Javelin Strategy & Research.

As part of its research efforts, BioCatch published comprehensive reports examining fraud trends in Brazil and Latin America. The company further collaborated on studies investigating financial scams in France and information sharing practices with The Knoble organization. These efforts were recognized by Datos Insights, which awarded BioCatch silver in their 2024 Fraud & AML Impact Awards.

BioCatch CEO Gadi Mazor emphasized the importance of continuous innovation in fraud prevention, stating, “Bad actors never stop innovating, and so we – as an industry – must not either. We believe cooperation among banks, regulators, law enforcement, and vendors is vital for proactive fraud and financial crime detection and prevention.”

The behavioral biometrics market continues to experience substantial growth as financial institutions increasingly seek more sophisticated fraud prevention tools. Research from Javelin Strategy underscores this trend, revealing that identity fraud losses reached $56 billion in 2020, driving greater adoption of behavioral analytics for fraud prevention.

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November 5, 2024 – by Cass Kennedy