Defacto applies for a European banking license to scale up SME lending

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Defacto has filed for a European banking license to scale its SME credit business beyond France. The fintech already holds a French financing company license and uses API integrations and partner channels to distribute invoice advances, supplier payments, flexible credit, and card products. It also offers a lending-as-a-service platform to banks and relies heavily on AI-driven scoring and automation to run its lending operations efficiently. If approved, Defacto plans to expand first into Belgium and Germany, where electronic invoicing and similar payment behavior support its model.

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