Fresh off its FinovateEurope debut earlier this year, Paris-based fintech Dotfile has raised $6.7 million (€6 million) in funding. The round was led by Seaya Ventures, and featured participation from the firm’s existing investors Serena and Hexa. In a statement, the regtech innovator indicated that the funding will power its R&D efforts as well as fuel its international expansion plans.
Dotfile leverages AI to enable banks and other financial institutions to automate customer onboarding and ensure compliance with anti-money laundering (AML) regulations. The company’s business verification platform improves upon the traditionally manual, complex, and expensive Know-Your-Business (KYB) process by aggregating dozens of different data sources to produce a comprehensive picture of a business within 10 seconds.
“More than $200 billion is invested in compliance every year, yet 2% of the world GDP is still going through the money-laundering rinse cycle, which is fueling crime,” Dotfile CEO Vasco Alexandre said. “AI could change how effective those policies are and the positive impact for our societies could be massive.”
The investment in Dotfile comes at a time of growing awareness of the importance of compliance in financial services – and the ability of technology to help banks and other institutions meet these obligations. From banks seeking to maximize opportunities in fintech partnerships to cryptocurrency platforms eager for greater clarity on digital asset regulations, institutions throughout financial services are finding themselves in an increasingly dynamic regulatory environment. To help companies better manage their compliance obligations, a new generation of fintechs such as Dotfile have emerged with tools, workflows, and other solutions–often AI-powered–to streamline and enhance verification, ensure accurate auditability, and reduce costs.
“Compliance is costing banks up to 10% of their revenue, 1 out of 4 employees work in a compliance-related position and existing systems are sometimes more than a decade old,” Alexandre said. “With the competition from fintech intensifying, a transition is bound to happen and generative AI is the tipping point.”
Dotfile made its Finovate debut at FinovateEurope 2024 in London. At the conference, the French regtech demonstrated its end-to-end business verification platform that empowers compliance teams to streamline their operations. The company was founded in 2021 by Alexandre and Titouan Benoit, and received major support from startup studio Hexa (formerly known as eFounders). Today, Dotfile has more than 50 customers across 10 countries, including banks, private equity firms, and fintechs. Most recently, the company announced a partnership with private market investment platform Roundtable, helping the firm improve its KYC process to optimize and accelerate customer onboarding.
Photo by Paul Deetman
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At the forefront of financial technology innovation, Paris-based regtech Dotfile has once again demonstrated its prowess in revolutionizing compliance within the financial services industry. With a recent infusion of $6.7 million in funding led by Seaya Ventures, the company is poised to continue its mission of leveraging artificial intelligence to streamline customer onboarding and ensure adherence to anti-money laundering regulations.
This investment underscores the growing importance of compliance in the financial sector, as institutions grapple with increasingly stringent regulatory requirements. Dotfile’s innovative approach to automating the KYB process has garnered attention from banks, private equity firms, and fintech companies worldwide, positioning the company as a key player in the regtech space.
As financial institutions face mounting pressure to enhance their compliance capabilities, Dotfile’s cutting-edge technology offers a promising solution to the challenges of KYB verification and AML monitoring. By harnessing the power of AI, Dotfile is paving the way for more effective compliance practices that not only mitigate financial risks but also contribute to broader efforts to combat money laundering and illicit activities.
With the support of investors such as Serena and Hexa, Dotfile is well-positioned to expand its reach and accelerate its growth on a global scale. The company’s successful debut at FinovateEurope 2024 highlighted its innovative approach to business verification, setting the stage for further advancements in the regtech landscape.
As the financial services industry continues to undergo rapid digital transformation, Dotfile’s commitment to excellence in compliance technology serves as a testament to the power of innovation in driving positive change. With the backing of industry leaders and a dedicated team of experts, Dotfile is poised to lead the charge in reshaping the future of compliance within the financial sector.
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