Intended to effectively detect, deter, and prevent duplicate financing, the solution powered by fintech MonetaGo’s Secure Financing system is a native global solution that reportedly is interoperable between markets. The Trade Financing Validation Service is accessible via SWIFT’s global Application Programming Interface (API). The solution provides checks on financing transactions to detect and prevent duplicate financing frauds within domestic markets and cross-border, as stated by the official press release.
Trade finance providers register select document information by sending the information via API. MonetaGo’s Secure Financing system cryptographically hashes the data to create document fingerprints that can be compared with already registered document fingerprints, to detect duplicates. All customer and transaction data are encrypted in compliance with global banking and data protection standards, and the document fingerprints created by the system cannot be reverse engineered to reveal the data that created them, according to the press release.
Besides this, the solution also verifies document data through automated validation against trusted sources such as government authorities and logistics databases.
MonetaGo’s CEO and founder declared that ‘Secure Financing overcomes challenges created by information silos, private-private data sharing, and data confidentiality within and between financiers, through the use of privacy-preserving technologies including confidential computing. A global solution is necessary because duplicate financing fraud occurs both domestically and across borders. The MonetaGo solution was architected to be natively global and interoperable between markets, different financing platforms and ecosystems, to effectively mitigate the risks of trade finance frauds within and across markets.’
The solution’s pilot took place during the second quarter of 2022. Then, Standard Chartered tested the deduplication solution using mock data with invoices, bills of lading, purchase orders, and warehouse receipts. The platform reportedly returned the results of exact matches and suspiciously similar transactions in near real-time. Through its platform, SWIFT is leveraging APIs to enable its community to offer a range of solutions developed by SWIFT and by partners across the financial services ecosystem, according to the Global Head of Wholesale Payments and Trade Strategy at SWIFT. He argued that the Trade Financing Validation Service from MonetaGo is an example of how a single connection to SWIFT’s platform allows financial institutions to access a range of third-party services that can unlock real benefits for their end customers.
Standard Chartered’s Global Head of Flow and Financial Institutions Trade declared that the adoption of such a solution by key industry players will help mitigate fraud and reduce duplicate financing risk in trade finance. By combining MonetaGo’s technology with SWIFT’s network reportedly presents a global solution to a global problem, as the solution enables cross-border comparison of transaction hashes to detect duplicates, the official press release concludes.
In recent news, Standard Chartered partnered with FairPrice Group to launch Trust Bank in Indonesia, while a partnership with Bukalapak gave rise to BukaTabungan.
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