In this episode of the Connector Podcast, host and CEO Koen Vanderhoydonk interviews Frank Verhaest, a long‑time executive of the Isabel Group, to trace the company’s 28‑year journey from a joint‑venture payment platform for Belgium’s four largest banks to a diversified fintech ecosystem. Frank outlines the evolution of Isabel’s core multi‑banking software (from floppy‑disk deployments to the cloud‑based Isabel 6), and highlights pivotal acquisitions—CodaBox (accounting data), Ibanity (PSD2 open‑banking middleware), Clearfract (accountancy), Clearnox (debt collection), and a 50 % stake in DOCO with Telenet—that expanded the firm’s product suite into digital identity, blockchain‑based KYC, and cross‑border services. The conversation delves into how Ibanity acts as a middle‑man between banks and software integrators, offering a unified API marketplace to simplify PSD2/PSD3 compliance and future data‑exchange needs. Frank discusses Isabel’s strategic focus on API‑driven integration, embedding financial services into third‑party applications, and the company’s modest European expansion (Luxembourg, France) while maintaining a Belgian‑centric core. The interview also touches on the role of FinTech Belgium and the upcoming DFS 2023 event, emphasizing community collaboration, the rise of embedded insurance, and the presence of traditional players like Visa and Mastercard. The episode concludes with contact information for Frank and a call‑to‑action for listeners to follow the Connector Podcast.
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Welcome to the Connector Podcast, an ongoing conversation connecting fintechs, banks, and regulators worldwide. Join CEO and founder Koen Vanderhoydonk as you learn more about the latest available trends and solutions in the markets.
Welcome to another podcast episode with the Connector and Fintech Belgium. And today I have the oldest fintech from Belgium around with me in the podcast. Frank, can you tell us more about yourself and the Isabel Group?
Hi, Koen. Thanks. I'm happy you didn't say I have the oldest guy here.
I wouldn't dare. I wouldn't dare.
So my name is Frank Verhaest. I'm, you could say, a banking evangelist. at the Isabel Group. I've been here for lots of years. Looking at Isabel, well, the company started like in 1995, so that's about 28 years now. It changes every year, so it's 28 now. It started as a kind of a joint venture between the 4 largest banks in Belgium to create a payment platform that would be unified between the 4 banks. Today, we've grown to 27 banks in Belgium. And the evolution over the years was going from a software that you would upload with CDs, you know, and now diskettes. It started with diskettes, CDs, the floppies. Yeah, the old floppies. And then in 2010, we went towards the internet and we created Isabel 6. And then it was completely different, of course, because you're in another model. You can make changes to the applications directly. It's shown to everybody. So it was another way of thinking. But after that, it was nice doing payments, but the world evolves and we start thinking like, what else can we do? So we've had a few acquisitions over the years. 2016, we started with CodaBox. Which was our entry into the accountancy, CODA files, data, you know, it's a completely different world than just banking. And then we had the acquisition of IBANity, steps to PSD2 APIs, so completely different also. Then we went back to accountancy with Clearfract in 2018. And then in 2020, we thought, yeah, we have this new technology called blockchain and we have this thing that banks need to get, which is called know your customer. So let's try to do something with that. So we started that, uh, and we continued in fact in digital identity, which— because digital identity is something that's going to be more and more important, not only for consumers but also for enterprises. Um, and then 2021, uh, last acquisition, Clearnox, which is a debt collection software. It's a French company, so it's first steps towards other countries than Belgium. Well, we had Luxembourg, sorry, I forgot. And we also have a 50% participation now in DOCO together with Telenet. And that's where we are today. So there's a lot of things that happened, diversification of activities. So it's fun to be here.
Super interesting. And what would be the most pivotal moment for you and the company?
I think when we acquired CodaBox, it was really going away from pure banking and going to something completely different.
Mm-hmm.
So that's one. And the second one is when we acquired this little company called Identity, which opened us the new world of open banking and PSD2 and APIs and stuff like that. So these are really 2 big innovations that came there.
Well, talking about Ibanity, what does Ibanity bring to the market? What does it bring to the table?
Well, Ibanity, you can see them as a kind of a middleman between banks and software integrators. You need to be able to create a solution to access the bank accounts of people and companies. And they need to be able to inject payments, to get the bank statements, and they're in between. So this whole EU PSD2 thing opened up the banking, but created also difficulties because every bank started to implement the APIs in their own way. Every software integrator wanted to connect every bank one by one. And then you got this, the banking didn't have enough resources to talk to all the software integrators. So you have something And we decided to put something in between called Identity, Access to Account, it's called on our side, which allows to connect to different banks through one middleware, I would say, which is what we're doing. And on one hand, we connect to the banks and we offer this solution to software integrators so that they can create and embed in their solution this whole PSD2 open banking.
Well, yeah, thank you. If you talk about PSD2, of course you also talk about PSD3 and potentially also data collaboration that's happening at large within the industry. So how does Ibanity then position itself to accommodate the things that are coming?
Yeah, well, Ibanity is focusing really on this exchange of data and preparing itself for whatever is coming with PSD3, of course. So they are really, I'd say, constantly looking at what are the new things that are coming from Europe, what are the things that banks are doing, what are the needs of the banks, but also what are the needs of the software partners that want to integrate and always try to innovate and create solutions that can be integrated easily. So they have this whole API marketplace also, this ecosystem that we're building of partners that can integrate into the Ponto solution that we have and can add their solution to our solution. So the world is not only open banking, but it's open systems where you create solutions by adding little blocks, you know. But based on the basis that is PSD2, where you can exchange data. Of course, PSD3 is going a little bit further, like combating payment fraud will be in PSD3. And there we have other solutions at ISABEL, like ConfiBan, where we do the IBAN check. And all these solutions will then be also integratable with all the rest in our marketplace. There's a lot of things that are moving there.
So the intention of Isabel Group is to continue to stitch the different solutions together to provide like a holistic approach to the banks.
Yeah, even more than before. It's really connecting things, making sure that when you need a solution for a problem that you have, we can offer the benefits and the value by having different blocks Not only things that we build ourselves, of course, because, I mean, we're only 350 persons, we cannot do everything. But we have partners that have a specific solution, I don't know, in accounting or whatever. And we bring these blocks together through APIs and we exchange data. I mean, the future will be exchanging data, of course. You'll get less and less, I think, Frontends created by Isabel, you will get this embedding of the finance and of the transactions into other solutions. We are the motor that will create that.
Interesting. I mean, you at the end, you are the pioneer of the Belgium fintech space amongst maybe others. We we very gifted in Belgium with companies such as Euroclear, like Swift, and many others. That's often very like. infrastructural. And what you say sounds a little bit the same. How does that resonate when I say that?
Well, it's great to be compared to Euroclear and SWIFT. I don't think we're that big as them, but on what we do, yes. We were the first one to create a multi-banking platform. I mean, it was something I don't think anywhere in the world that existed. The banks were smart enough 28 years ago to think about, let's create one software so that the CFO doesn't have to go into different platforms, log in, get the data, do payments. No, you can see everything into one platform. This was completely innovation. That is something that nowhere was there. And we want to continue on that line of being innovative and creating new solutions that have that are adding value to our customers, that bring them benefits so that they can do their work better and focus on their core business.
And you mentioned a few countries. You mentioned Belgium, obviously, Luxembourg, but also France. How does it look like if you look at the rest of Europe? What's the place of ISABELL within the European landscape?
Yeah, well, a solution like ISABELL 6, even if you embed it, it's really focused for the moment on Belgian banks. So if you look at going more towards Europe, well, then you have to go almost like PSD2, PSD3. So that'll be more the open banking thing. The things that we are doing with specific Belgian accountants is not something that you can just like that bring to other countries because accountancy rules are different from country to country. But the basis is there. I mean, the logic is there. So Just put some other logic behind it and it can work. But it's not our first priority. We're focusing on making the world of payments more integrated, embedding into software, making sure that this API marketplace is working well. So we're really focusing on that first.
Okay, understood. Now, Isabelle has been one of the first members of FinTech Belgium, one of the early-day members. So why are you so excited about DFS?
Yeah, because it's always interesting the kind of people you invite there. I remember starting with just fintechs and we were all happy, happy, joy, joy. We're doing something completely different. But now it has become something more professional. You see large companies with new solutions. I'm thinking of like the embedded insurance now that's coming with COVID Of course, we have Mark Mühne, our own specialist, who will be speaking there. So I'm very pleased that he'll be able to present our view on open banking. But also you have those traditional players like Visa, Mastercard, iON Banking. Those companies that will be there also to present where they are going. Because I mean, they are also evolving, they're not staying on what they used to. So they also have innovation departments with new technology, with new solutions that they can bring. So that's interesting to see what they can do next to the startups and the new companies with new ideas, with young wolves, uh, who have, yeah, let's, let's create that because nobody thought about it. The, the energy that is there in FinTech Belgium and, and, and DFS is always fun. I mean, uh, for people, I'm gonna make some promo for FinTech Belgium, but for people who never went, if you have a startup, just, just go at one of the events in the morning, the breakfast things, and you see all these people that are very enthusiastic. So it's, uh, it's really nice. Yeah, I mean It has evolved. I was there completely in the beginning when everything started, and now it's getting much more professional.
It's super nice to hear the voice of an ambassador. So, Frank, maybe a last question because we're heading towards the end of our podcast. A very simple one. Where can people contact you?
Well, I mean, it's the 21st century, so go on LinkedIn, look for Frank Fiedhaus, you'll find me. But go to the Isabelle website, isabellegroup.eu, and there's a contact button, there's a telephone number. I mean, I think there's only one Frank in the company, so it's okay.
That's easy. That's easy.
Yeah.
Thank you very much, Frank, for joining this podcast. And thank you also to the audience. And please stay tuned because we're going to give you more inspiration why you should come to DFS 2023. Thank you very much.
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