Discai is a BankTech company supported by KBC Bank and providing Technological Banking Solutions. They recently launched their activity with a first focus on technology solutions for the Anti Money Laundring challenges.
In this DYNAFIN PODCAST episode DISCAI CEO Fabrice Deprez talks about:
👉 The journey of Discai so far
👉 Problems AI solutions will solve in the financial world
👉 Strengths and successes of Discai
👉 And much more…
Welcome to the DynaFin podcast.
We bring you the latest Finance and Technology news straight from the market.
Don't hesitate to contact us, we'll be pleased to meet you!
Discai is a BankTech company supported by KBC Bank and providing Technological Banking Solutions. They recently launched their activity with a first focus on technology solutions for the Anti Money Laundring challenges.
In this DYNAFIN PODCAST episode DISCAI CEO Fabrice Deprez talks about:
👉 The journey of Discai so far
👉 Problems AI solutions will solve in the financial world
👉 Strengths and successes of Discai
👉 And much more…
Welcome to the DynaFin podcast.
We bring you the latest Finance and Technology news straight from the market.
Don't hesitate to contact us, we'll be pleased to meet you!
Koen Vanderhoydonk 0:09
Welcome to the Dynafin podcast. I'm your host Koen Vanderhoydonk. And together we bring you the latest FinTech news from the markets.
Fabrice Deprez 0:28
Thank you for tuning in everybody. And today, I've got families with me from Discai. How are you doing for this primer? Well, thank you. Thank you. Good. Excellent. Can you tell me a little bit more about yourself? Yes. Well, first of all, thank you for this opportunity to have this podcast. So my name is Fabrice Duprez. I joined Discai and KPC group on the first of January of this year. Team blue if I need to be compliant with internal communication, so I joined check. Yes, so communication will be happy. Exactly.
Fabrice Deprez 1:02
So I joined the first of January, before that I had around 24 years of experience in system integration. So implementation of new systems in the financial industry mainly. And the last few years I focused a lot and if and the data, data, AI and new technologies, also, that's a very good fit with discai can imagine. Yes, it is, which problem are you actually solving with discai? Well, before we go to the problem solving right now, it's very nice to explain where discai is coming from where the idea is coming from. So
Fabrice Deprez 1:35
I will tell you something new. If you know that in the financial industry, there have been some revolution last few years, many things are happening. It's both AI, right AI, but when you go even further, and you have new entrants, you have apple which is coming, you have many interests arriving. So the classical banks need to reinvent themselves. KBC has last 10 years quiet and been investing quite a lot. And everything was new technologies, this innovation as real culture, internet, KBC does not like let's say 10 to 15 years ago with the clouds. And then last 10 years in AI. So KBC started already 10 years ago, to invest in AI, and we build a huge team of around around 120 data scientists. That's that's a lot. That's That's what can be considered as one of the biggest in the in the market. In Europe, we may dream a little bit behind that. And this team has been really developing a lot of AI solutions. Many of these are in production with a QVC. And a large set of this were considered as groundbreaking, very innovative and not incomparable in the markets. So we decided to protect it. And of course, then the next step is quite easy. If it's protected, you can start selling it. And this Idea popped up two years ago, and the company was launched and of last year and arrived, which is pretty fast for a bank, right? Yeah, yeah, it is quite innovative. When we talk with banks, many say, we were thinking about doing that. And the big difference between thinking and doing is huge. It's huge.
Fabrice Deprez 3:02
So if you explain a little bit what discai is doing, where are you coming from? And how would you explain the journey? What what what was your feeling in the journey? Well, just to finalize the previous points, and I can go to Jim, because those two are likely to each other I see. And all the solutions we want to bring to the market, and there are many of these. But we made the selection of bringing the AML solution, anti money laundering solution to the market.
Fabrice Deprez 3:32
We did that because while the market is just overflowed by financial criminality, and AML is a big burden in the financial industry. So we decided to bring that one to the markets. So what was the journey? Well, when you're in the regulatory environment, so everything was according to rules, when National Bank is looking into it, what the authorities are looking into it, of course, you don't bring a solution like that on the market and overnight. And especially when you have Debussy branding behind you. So my main target was when I arrived is to get the authorization to launch Discai. And to go with the ML solutions to the markets, of course to be used internally, we had a whole region of compliance and I will spare all the stories about that one. But to go to the market is even bigger stories, all our processes had to be okay about maintenance processes, investment processes and solution development of the solution. All that was audited several time we had to pass all these phases and get the authorization for the boards of KBC before we can go outside so that was the first two three months it was a big journey and getting that straight down. Because doing the things right is one thing but pay attention to while blames on the market because you did a mistake or something that keeps you longer doesn't want to have
Koen Vanderhoydonk 4:51
especially in AML right that's especially biggest fines are nowadays Yeah, financial industry
Fabrice Deprez 4:56
especially in the abroad. We see that that huge in Netherlands we see huge fines in UK, Belgium is quite, I would say, quite stable or quite okay with that. But that is coming as well. It is clear that that, of course, French criminality is not stopped at all borders. So the pressure is increasing. And it's weird that Corona didn't help that as well.
Koen Vanderhoydonk 5:20
So it brought in a new dimension into AML. Right? Absolutely.
Fabrice Deprez 5:23
Well, in financial fraud, criminality, and therefore catching these guys, some
Koen Vanderhoydonk 5:27
some say that the amount has been higher. But it's also different. It's smaller pieces, but more frequent. So I understand that AI can come into place here, because it's more difficult to find the big cases, if you want, it's more about details nowadays than it was ever before.
Fabrice Deprez 5:47
Yeah, absolutely. What you see is just that, that the the tactics, which are used are just getting smarter. And they know exactly what the banks do how they do it, so they can avoid it. So we really need or to invest in tech technology to be smarter and faster than them, or you need to invest in people analyzing all that work. And also on that there is limits.
Fabrice Deprez 6:08
N of course, go to markets and be visible. Because if you have good product, that's one thing, but know that the customer knows that you have good product A second thing, so a lot of visibility, a lot of presence on events, and of course discussing with prospects. So we are not limited to Belgium. So we are already worldwide. Focusing, I would say more on Europe right now. Because of course that is closer to our home markets. But we are already thinking about Asia and us for a little bit longer term. So visibility, discussing with prospects is one big, big chunk. Second thing is AML is one part of financial financial criminality. So we're also together with KBC, defining it roadmap of all the solutions that fit into that domain, in order to bring a full suit, because that's what customers more and more wanted, they want a partner that can help on several domains. And this is exactly the direction we want to go, we want with KBC and Discai, go to a bank as a service model, so partnership with other financial institutions, so that they rely on us for a broad spectrum of solutions.
Koen Vanderhoydonk 8:15
And does it help to be KBC staminate When you actually are in the European market? Well,
Fabrice Deprez 8:21
for sure, in the in the home countries, Kbc is considered as stable quality, trustworthy, financial, stable, and as the same core countries. On the other hand, while we still have good reputation outside when remain within Europe, that's what of course one advantage. But I would say the advantage that we really feel a bit more than than just pure reputation is, first of all, we are startup startup, yes, we are just 11 people. So that's that's quite small. But on the other hand, we rely on the AI team, which already said around 20 to 20 people plus it from KVC plus all the business that are working on the solutions. So we are several 100 people working for us, which are
Koen Vanderhoydonk 9:05
your neutralizing a lot of the efforts done by a bank. For others.
Fabrice Deprez 9:09
That's absolutely what our motto is we build solution by a bank for a bank, and we bring that to the market. So that is also a major differentiator to what the competition is our solution will by any means will always evolve because it needs to evolve for KBC. We are not depending on financial investment rounds, I will not say that our pockets are indefinite, to be profitable. But we still rely on the advantage that KBC needs evolution, the soul evolution will be brought into the solutions, and this will be brought to the market.
Koen Vanderhoydonk 9:43
Yeah. So it brings you a different type of stability that maybe other startups cannot bring. Yeah. Sometimes also considered to be difficult for banks to collaborate with you.
Fabrice Deprez 9:53
Absolutely. Absolutely. And when I see many, many websites of fintechs which by the way, it's also needed on the market to have this innovation, and what you very often see on the website is how many investment drones do they have? How many money did they got from the markets. And this is a specificity, which is of course driving on one sense, or the other hats, it brings a pressure. If these investments run stops, where will they be one one year, two years. Secondly, the investors are investing money to get a return. So the company will be sold at one moment. And that's a total other topic that we also bring to our customer. So we are here now, but we will be there in five years, 10 years, 15 years, because we are bringing the solution of KBC. So the stamp of KBC has many advantages, many flavors that we can bring to the customers.
Koen Vanderhoydonk 10:42
And while earlier before we started the podcast, we were laughing that we will not do it in Chinese. But Chinese walls are very important in this story. So how would you ensure that whenever you go to a different bank, there is no overspill. There is no crossing the Chinese wall for that other bank.
Fabrice Deprez 11:02
I like to jump from China to the Chinese wall. Yeah, maybe I will be in charge. Yeah, we'll be a Chinese volunteer to to do the podcast probably. Anyhow. Yeah, of course, that's every question that that that customers asked. And there the answer is real simple. First of all, we bring H a physical, Chinese Wal Mart technology live. So every customer will have its own full AWS because we are doing in the cloud now. Full separate environment. So there's absolutely yeah, if she was delinquent, indeed, separate, separate. That's, that's one thing. Secondly, we also confirm that on processes and on people working, we'll we'll have a full chapter wheels will be between all these. And their data protection is as crucial as the financial criminality. So we just can't afford to have a bridge between customers and that that would flow to the market and say, well, Kbc is bringing the solution. And they're using that to collect data. So that is total, not done, unacceptable, not done. And I would say just I wouldn't want to add as when I arrived here at some of my interviews with you, and you want this. And what struck me is that more than half of the interview was about ethics, about proper management, clean management, about division about protection of data, protection of integrity. And there's something that you really feel an ever sense of the words and the company in the group. So when I was saying at the beginning, we had to get all this audit done, is to ensure that we will do the thing properly. So yeah, absolutely. We need to do that. And that will be handled as well.
Koen Vanderhoydonk 12:40
Well, nice. And how does success look like for Discai?
Fabrice Deprez 12:46
Well, of course, we have a business plan is achieving the business bank everywhere. That's the basic? Well, I think that the story is we want to become a reliable partner, meaning that that other banks trust us, and they work together with us. Throughout this innovation and evolution. I think if within one two years, we are a number of and I won't put a figure if it's 256 or 25. But there are a number of financial institutions trusting and building a trust relationship with us. For the long term, that will be a major success. When I need to believe the board's as be the next unicorn of Belgium, but let's put that little bit
Koen Vanderhoydonk 13:26
aside, we will get that outright.
Fabrice Deprez 13:30
I think that again, communication will be happy with that word.
Koen Vanderhoydonk 13:34
Be Be careful because you're putting yourself in a very clear objective.
Fabrice Deprez 13:39
Let's say that, in one hand, the pressure is high. And the other hand is we'll try to do this as a total new way of getting Of course, return on investment like EBC. That is for sure. Of course getting money to into invest and evolve even faster. Even if we're not successful. Anyhow, the investment had to be done. So there is no proper proper mistake.
Koen Vanderhoydonk 14:04
We basically come back to the mutualism realization, right. That's that's a very important element in this story. Absolutely. I really like it, actually. So Fabrice, you are a rec tech company, right?
Fabrice Deprez 14:17
Yeah, no, we are a bank tech company. Oh, yeah.
Koen Vanderhoydonk 14:21
That goes My question goes your question. Absolutely.
Fabrice Deprez 14:23
Well, make sense. It really makes sense. When we launched the company we did a press release a new press release, it was written a fintech. It went to the to the press, and then you want to saw it. I said, No, I don't want to see fintech. I want to see bank tech. Why is because we are really has no other company bringing the banking expertise and banking capabilities together with technology, banking. Also, I explained earlier and the podcast that we rely on the huge amount of day to day business users with problem instead define design a solution on a technical way, as implemented, and it needs really to solve their problem. It's not something that we think will add or will support the markets, it needs to solve for the internal problem before. And we have, of course, huge company 1000s and 1000s business users that define solutions. So we have that expertise in house, we have that same tiny house as a bank. And then also, we already said that we invested very early in innovative technologies, cloud AI and and many others to come as well. And bring those two together makes a difference. And this is where really, we can say that we are a bank, tech company.
Koen Vanderhoydonk 15:37
And would you consider yourself more bank or more tech
Fabrice Deprez 15:41
expert that question? Well, no, 5050, both are as important because the essence of what we do here is bring that expertise of the bank, the solution we bring are by a bank, for a bank. And that's a big difference. That's a very strong statement. Absolutely. And that's what the latest technologies and huge capacity and developments. And that's a big differentiator,
Koen Vanderhoydonk 16:07
very clear for me for this. Thank you so much for sharing all these insights with me, and also the audience listening in today. So maybe for closing this podcast, if you could give us a few takeaways, what would that be?
Fabrice Deprez 16:24
I would first say that the model that we are bringing that Discai bring on the market is quite different from what what exists really now. And I'm not saying that the classical solution developers system integrator that tech become obsolete? Absolutely not. I think they're just real plays on the markets. For companies as we are, that will, one side will say dynamize the market, but also can support any very quickly evolving markets. So I think they really have a place to be and I really believe that universe selling point, right, the unique selling point. And and I know that several other large companies already came to us and asking how do we make that successful? Because they really thought as well already to do the same story. So I really expect that companies that have the same capabilities as we are, and also this investment innovation will in next few months, years also start copying that model. And I just think that's a value adding for for for the market and for the for the sector. That's one. The second one is we attack financial criminality, with with our solution. And this is really a burden in the sector. And it's becoming more and more important, more and more stringent in the markets. So I think that's bringing this kind of innovation. This kind of solution will support the market. And by the way, also community because financial criminals are not only hurting banks, they are hurting everybody day to day on the street. Even if you don't feel it immediately. Well, you will feel when you will be hacked, you will feel in your tax you will feel anyway. So I really think that financial crime and AML will be a very hot topic in the next few months and few years. And lately. Last, last but not least, we are still a small Belgium company. And let's be a little bit proud of what we can do in Belgium. We have Yeah, with KBC. What we do here we have a really strong market, really strong company a really strong offering. I think the budget can be proud of what we can bring.
Koen Vanderhoydonk 18:29
Well, I can only agree with that. And frankly talking about proudness we are very proud from Tina sent to have you know podcasts. Thank you very much for you to be here today. Thank you also to the listeners. And please stay tuned for our next podcast. Thank you very much