Blackcatcard CTO Unveils a Breakthrough Risk Model That Could Redefine Fintech Security

Olegs Cernisevs, Doctor of Science and CTO of Blackcatcard, has presented a breakthrough concept that could reshape how financial institutions and fintech companies approach risk management.

As part of the European research project “Model of Smart Economy in a Smart City”, Cernisevs developed a universal method of risk assessment designed to work across industries. Unlike traditional models that rely on massive datasets and heavy computational frameworks, this new approach demonstrates that risk can be calculated with greater simplicity and efficiency — without losing accuracy.

The model was first validated in the financial sector, where precision and speed are critical. The research showed that financial institutions can assess risks more effectively even when historical data is limited — a common challenge in fast-scaling fintech environments.

“The main idea of my research was to create a practical formula for risk assessment that can be applied to all industries, including finance. The calculations and validation were performed in the financial sector first, but the model is universal,” said Olegs Cernisevs, Doctor of Science and CTO of Blackcatcard.

This breakthrough has wide-reaching implications. For example, a digital bank launching in a new market can use the model to quickly assess fraud risks without waiting years to accumulate customer transaction data. Similarly, fintech services in smart cities — such as instant micro-payments for shared mobility or utility billing — can apply this simplified model to ensure resilience and trust, even under limited historical information.

By bridging academic research and fintech practice, Olegs Cernisevs positions risk management not as a barrier, but as an enabler of innovation in smart economies. This EU-funded research highlights how financial infrastructure can evolve to support the future of digital payments, smart cities, and global financial ecosystems.

The full study, titled “Financial Institutions of Emerging Economies: Contribution to Risk Assessment”, has been published in the peer-reviewed journal Risks by MDPI, an international academic publisher and is available online: https://www.mdpi.com/2227-9091/13/9/167