Rancho Cucamonga, Calif.-based CO-OP Financial Services intends to implement artificial intelligence to fight fraud, with a machine learning-based risk management tool for its client credit unions later in 2017.

"A key pain point for credit unions in 2017 is that fraud mitigation tools have not kept pace with the relentless advance of fraud," Todd Clark, President/CEO of CO-OP said. "CO-OP Financial Services has an equally relentless commitment to credit union and cardholder security. We are investing $20 million this year on new innovations to ensure credit unions have access to the very best technology in the payments industry. Implementing machine learning capabilities is a key initiative in delivery on that promise."

CO-OP and San Mateo, Calif.-based Feedzai, which specializes in artificial intelligence for payments applications, partnered to develop solutions to address fraud at any transaction volume.