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Defacto Chooses Dotfile to Streamline Compliance Operations

We’re thrilled to share a case study of Defacto, one of the fastest-growing players in the embedded finance space. The Paris-based company helps SMEs cover all kinds of short-term financing needs. They recently announced a €10m Series A funding. Defacto sought to streamline compliance operations and lower operating costs. Upholding its commitment to user experience was also important. The solution was found through collaboration with Dotfile which provided a comprehensive yet flexible solution supporting both present and future compliance needs.

Vasco Alexandre
Co-founder & CEO

Posted :

November 30, 2023

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The Defacto + Dotfile Success Story

Defacto is an embedded B2B lending platform that provides a suite of flexible financing solutions to SMEs. It helps to cover all kinds of short-term financing needs including invoicing, inventory, BNPL, and more. Loans are distributed through an API-first product that integrates with marketplaces, fintechs, and other B2B tools. It's also available through its own web application. With the market expansion plans, fuelled by the recent funding, Defacto needed a future-proof solution. They aim to scale operations and maintain the highest compliance with AML/CFT standards. At the same time, they focus on providing a stellar user experience.

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The Challenge

Defacto’s rapid growth and international expansion plans required an end-to-end solution. The bespoke solution should support all their present and future compliance needs, with the flexibility to accommodate a variety of scenarios. The company didn't want the hassle of dealing with a disparate set of vendors.

The Solution

The partnership between Defacto and Dotfile is based on mutual trust and shared objectives. Here’s why Dotfile became a strategic partner:

  • Strategic Sanctions, PEPs, and Adverse Media Screening: Dotfile's approach to sanctions, PEPs, and Adverse Media list targeting allowed Defacto to focus on risk-based filtering, significantly reducing false positives. As a result, Defacto saw a substantial reduction in compliance workload without compromising on risk management.
  • Adaptability to Defacto’s processes: Dotfile’s flexible platform proved valuable to Defacto by allowing the team to fine-tune configuration depending on evolving risk appetite, regulatory context, and business demands.
  • Enterprise-Grade Reliability and Security: Dotfile’s platform is SOC II certified and has demonstrated an uptime above 99.9%. Dependable performance is critical to ensure uninterrupted compliance operations and business continuity.

The Outcome

The collaboration between Defacto and Dotfile produced remarkable results, including:

  • Compliance Excellence: Dotfile aligns with Defacto’s commitment to uphold the highest compliance standards. We help them meet regulatory obligations without compromising the customer experience.
  • Lower Operating Costs: By choosing to invest in a modern compliance solution, Defacto is at least twice as productive and is able to scale its operations. Dotfile also allowed it to access prime AML and business data at a lower rate.
  • Continuous Improvement: Since the roll-out, both teams have been collaborating on several projects. They aim to strengthen Dotfile’s offering and the value it brings to Defacto.

Conclusion

Through the implementation of Dotfile’s end-to-end solution, Defacto was able to scale its operations, uphold its unwavering commitment to compliance, and lower operating costs while ensuring the best experience for its customers. This collaboration allows the flexibility to accommodate a variety of scenarios. This is especially important while expanding into new markets. Partnering with Dotfile allowed Defacto to benefit from a modern and user-friendly solution that helps streamline compliance and scale its operations. Download the full case study.

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