Defacto Chooses Dotfile to Streamline Compliance Operations

Defacto is an embedded B2B lending platform that provides a suite of flexible financing solutions to SMEs helping cover all kinds of short-term financing needs including invoicing, inventory, BNPL, and more. Loans are distributed through an API-first product that can be integrated with marketplaces, fintechs, and other B2B tools, as well as on its own web application. With the international expansion plans, fuelled by the recent funding, Defacto needed to scale its operations and maintain the highest compliance with AML/CFT standards, while continuing to provide a stellar user experience.

The Challenge

Defacto’s rapid growth and international expansion plans required an end-to-end solution that could support all their present and future compliance needs, with the flexibility to accommodate a variety of scenarios, without 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 and helps to 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 aiming 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, 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.

“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 and recently announced a €10m Series A funding. Defacto sought to streamline compliance operations, lower operating costs and uphold its commitment to user experience. 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, Dotfile.