MonetaGo Gives First-Ever International Answer to Duplicate Financing Fraud in Commerce Finance

NEW YORK, Sept. 13, 2021 /PRNewswire/ — MonetaGo, a monetary expertise options supplier, right this moment introduced a brand new platform to fight financing fraud in commerce finance on a worldwide stage.

The world of commerce finance has repeatedly been the sufferer of duplicate financing fraud. In such circumstances, companies might safe financing within the nation of origin, the vacation spot nation and a monetary heart – all on the identical commerce. A worldwide method is subsequently wanted to comprehensively mitigate danger. “Duplicate financing happens for a lot of causes. A unified answer utilized by lenders to fight the sort of financing fraud in worldwide commerce is the simplest method to assist resolve this drawback,” mentioned Mark Borton, Head of Commerce & Working Capital Finance Product and Asia Transactional & Commerce, Nationwide Australia Financial institution. “The MonetaGo Safe Financing Platform seems to be a easy utility that lenders worldwide may probably use to vastly enhance the commerce finance expertise.”

As banks and financiers embrace digitization, they’re supplied with new alternatives to share data whereas on the similar time sustaining the privateness and safety of shopper data. MonetaGo’s method is vital to breaking down data limitations amongst and between banks, platforms, and regional options. “Info silos between lenders ends in duplicate financing fraud as they typically have little perception into whether or not the shopper has submitted transactions for financing to different lenders,” mentioned Ed Aldorino, Head of GTB Asia, Lloyds Banking Group. “The integrity of all the commerce finance panorama is important for the circulate of commerce finance, and that is why we have been excited to take part in testing of the platform with MonetaGo. The straightforward-to-understand platform allows us to stop double financing fraud world wide in methods which weren’t doable earlier than and we look ahead to the impression it can have on the markets we serve.”

In an effort to ship a safe and standardized answer at a worldwide scale, MonetaGo is partnering with SWIFT on a proof of idea. The POC will allow MonetaGo to leverage SWIFT’s confirmed and strong API-enabled infrastructure, making certain customers may be assured about connectivity administration, authentication, safety, interoperability and community attain. If the pilot proves a hit, greater than 11,000 establishments related to SWIFT will have the ability to simply and securely entry MonetaGo’s finance validation service in a trusted and globally standardized method.

“Finance fraud in cross-border commerce can’t be absolutely mitigated with native registries, so it makes good sense to leverage SWIFT’s international attain to assist establishments world wide to unravel this drawback. By bringing international API requirements, identification and safety, SWIFT may also help to mitigate towards the rising problem of digital islands. We’re working with MonetaGo to pilot the answer that may present our group of economic establishments with an vital device to fight financing fraud on the worldwide stage,” mentioned Louise Taylor-Digby, International Head of Commerce Technique, SWIFT.

Final December, MonetaGo was awarded the Financial Authority of Singapore‘s Monetary Sector Expertise and Innovation (FSTI) Proof of Idea (POC) grant. The FSTI POC grant supplies funding assist for experimentation, improvement, and dissemination of nascent revolutionary applied sciences within the monetary companies sector. Within the POC, MonetaGo with 25 organizations, experimented on methods to detect and stop cases of duplicate financing referring to Invoices, Buy Orders, Warehouse Receipts, and Payments of Lading throughout completely different monetary establishments, with out the necessity for monetary establishments to share commercially delicate data with one another. The POC was carried out over a 6-month interval which concluded on June 30, 2021. Learnings from this POC may be discovered on MonetaGo’s web site.

Following optimistic outcomes and suggestions, the registry is now being deployed and buyer onboarding has commenced. The core parts of this new platform have been years within the making and resulted from MonetaGo’s longstanding expertise within the area having operated essentially the most profitable commerce registry over the previous few years with greater than 1.8 million financings already processed. The subsequent pure step within the evolution is to offer connectivity on a global stage which is the place partnering with SWIFT will likely be of worth. Leveraging the SWIFT API channel for standardization and distribution of the answer would increase its attain and effectiveness.

“Interoperability between disparate, native registries constructed on completely different expertise platforms requires widespread requirements and specs to realize outcomes,” mentioned Shinichiro Yamazaki, International Head, Commerce Innovation Unit, International Commerce Finance Division, Sumitomo Mitsui Banking Company. “We have been happy to have participated within the testing and improvement of a system that’s easy and able to stopping fraud on a worldwide scale”.

Importantly, the platform will not be solely being supplied to banks and conventional financiers, but in addition to Non-Financial institution Monetary Establishments (NBFIs) and non-bank lenders together with fintechs and commerce finance funds which offer clients in lots of sectors with commerce financing options. “MonetaGo’s Safe Financing answer can mitigate fraud not just for financial institution financiers however different lenders additionally; that is precisely what the commerce finance ecosystem wants. For too lengthy, financiers of all kinds lacked the flexibility to speak successfully and effectively to stop duplicate financing fraud, and it is thrilling to see this revolutionary fintech pioneering the way in which making certain confidence may be upheld globally in commerce fraud mitigation,mentioned Tom James, CEO/Founder, TradeFlow.

Deduplication is completed by figuring out whether or not financing transactions are utilizing the identical paperwork. By registering a novel “Doc Fingerprint” which is created by cryptographic hashing, the registry doesn’t retailer precise buyer or transaction information. The registry can thus be agnostic to the locality of the lender and there aren’t any points with sharing the knowledge throughout events or borders because the fingerprints can’t be reversed-engineered to disclose the info that created them. The system can then point out the standing of a registered doc as “financed”, letting an enquirer on the platform know {that a} lender has already offered financing towards that doc. ”Sadly, lenders would not have a sturdy answer right this moment that performs automated detection of duplicate financing fraud, as a result of numerous causes together with confidentiality for sharing of transaction information between lenders,” mentioned André Casterman, Board Member and Chair Fintech Committee at ITFA. “Fortunately, MonetaGo’s Safe Financing platform supplies a novel doc fingerprint that protects the privateness of the lenders and candidates’ information, whereas additionally performing a deduplication examine and stopping fraud.”

MonetaGo’s answer adopts ISO 20022 requirements and makes it straightforward for its customers to implement the suitable database schemas. “World expertise suppliers have to migrate away from digital islands with restricted scale to interoperable, platform agnostic requirements with a view to attain the subsequent stage of mass digital transformation and notice its inherent advantages. It’s inspiring to see MonetaGo embrace two essential requirements that may allow the efficient and environment friendly engagement of lenders and their clients’ commerce and provide chain methods sooner or later – GLEIF and ITFA DNI. Not solely is MonetaGo enabling essential use circumstances for purchasers however is doing so leveraging innovative strategies to reduce friction. Interoperability past its personal partitions is the longer term we’re all working in direction of reaching,” mentioned Oswald Kuyler, Managing Director of the Digital Requirements Initiative, Worldwide Chamber of Commerce.”

Finally, people who stand essentially the most to profit are usually not solely the banks and lenders, however commerce finance finish customers and clients. To mitigate the chance of loss as a result of commerce finance fraud and to handle operational prices, financiers globally have been offboarding shoppers, leading to commerce finance wants not being met. Virtually half of all Small to Medium Dimension Enterprises (SMEs) are unable to entry acceptable financing. This drawback additionally impacts Mid to Giant Cap firms in addition to Multinational Corporations who all are going through vital liquidity challenges in many alternative sectors. “Duplicate financing fraud happens far too typically, impacting accessibility to inexpensive commerce finance for thousands and thousands of companies world wide,” mentioned Jesse Chenard, CEO, MonetaGo. “The integrity of all the commerce finance panorama is important for the circulate of commerce finance because it performs a vital position within the financial system. We’re proud to work with worldwide organizations to offer a worldwide, standardized utility that seeks to assist forestall home and cross-border duplicate financing fraud, offering all with a good alternative in commerce finance.”

Organizations which are involved in implementing the Safe Financing platform can start the onboarding course of by means of because the system has been greenlighted to maneuver to manufacturing.

About MonetaGo

MonetaGo supplies enterprise options for monetary operations. The MonetaGo product suite is compliant with current rules and designed to enhance the effectivity and safety of economic merchandise.

Constructed to assist a number of applied sciences and interoperate seamlessly with current monetary infrastructure, financiers can combine MonetaGo’s merchandise with minimal disruption and value.

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For media inquiries, contact:

Brittney Regalado
Precise Company for MonetaGo
[email protected]


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