The Future of Fraud Prevention… And Why The Human Touch is Still Needed | myTU | FF Virtual Arena #350

Fraud prevention is evolving… But a human touch is still needed. 

That’s according to Tomas Navickas, co-founder of myTU, a digital banking provider with a unique focus on efficiency and sustainability. 

We spoke to him for our latest FF News Virtual Arena, in which he explains their focus on AI-driven automation for fraud detection, compliance, and customer support. Watch the video to find out more about…

• Their extreme efficiency, serving 50,000 clients with just $1,000/month in infrastructure costs.
• How AI could drive more effective fraud prevention.
• Their fresh approach to strategic team growth.

A bank with a product first mindset

In this Virtual Arena Tomas Navickas, co-founder of myTU, shares the story behind the creation of their digital banking platform, which has a product-first mindset. With a background in software development and payments spanning nearly two decades, Navickas was introduced to his co-founder, Roman, who had the vision for a digital bank when such institutions were still rare. The goal was to create a sustainable digital banking model, avoiding the cash-burning strategies of venture-backed fintechs, and to prioritize financial accessibility and education, particularly for younger users.

As for the market need that inspired myTU, Navickas explained that while digital banks are improving accessibility compared to branch-based banking, trust remains a key hurdle. A lot of digital banks still rely on cash rewards to attract customers, but this doesn’t necessarily translate into long-term trust or engagement with higher-value financial products like loans or mortgages. myTU in response aims to offer an efficient and convenient banking solution for individuals, families, and travelers while maintaining financial sustainability and operational efficiency.

 

AI’s role in digital banking

The conversation then shifted to AI’s role in digital banking. It’s certainly a major topic of conversation, with many banks considering how it will play a role. Navickas highlighted that when myTU started, advanced AI models weren’t as readily available as they are today. Initially, automation was achieved through traditional coding methods, identifying and optimizing processes like transaction categorization and multilingual customer support. However, with the advent of models like OpenAI’s ChatGPT, myTU was able to significantly enhance fraud detection, transaction analysis, and customer communication. AI’s ability to make nuanced, context-aware assessments—rather than relying on rigid rule-based systems—has greatly improved fraud prevention by identifying suspicious patterns and anomalies in invoices, pricing, and transaction behavior.

AI has enabled a real shift in the way they do things, allowing teams to focus on reviewing and refining AI-driven decisions rather than making every decision manually. However, he cautioned that AI without proper oversight can be overly aggressive in flagging transactions, requiring careful prompt engineering and fine-tuning to balance security with usability.

Extremely efficient banking

One of the most striking aspects of myTU’s model is its extreme efficiency. With a customer base of 50,000, the company maintains a cloud infrastructure cost of just $1,000 per month. Navickas attributed this to their commitment to lean architecture and in-house development, avoiding unnecessary reliance on third-party services. Unlike many startups that rapidly scale their teams and software dependencies, myTU follows a philosophy of building efficient, sustainable technology, inspired by earlier software development practices that prioritized minimal resource consumption.

While myTU keeps some services in-house, such as customer support and software development, certain tasks like card printing are outsourced due to high security and regulatory requirements. However, their overall philosophy remains one of in-house efficiency, allowing them to operate with just 25 employees, including a development team of only five people.

The discussion continues with thoughts on the impact of APIs, and myTU’s vision for scaling in Europe (and the challenges they might face there). Be sure to catch the full interview above, and watch more of our Virtual Arena interviews, right here on our website.