New York-based fintech solutions company, MonetaGo Inc. has recently announced a new platform to tackle fraud in trade finance on a global level.

To deliver a globally standardized solution, MonetaGo has teamed up with SWIFT, a leading provider of secure financial messaging services, on a proof-of-concept (POC) basis. The fintech firm will leverage SWIFT’s robust API-enabled infrastructure with the POC, to ensure authentication, connectivity management, interoperability, and secure network reach.

Once the trial is successful, over 11,000 institutions linked to SWIFT will be able to use MonetaGo’s finance validation service in a trusted, and standardized manner.

Notably, the trade financing field has been constantly bearing the brunt of duplicate financing fraud in recent years. According to sources, this issue can be countered by securing funds in the destination country, the country of origin, and the financial center in a single trade.

Global Head of Trade Strategy at SWIFT, Louise Taylor-Digby, was quoted saying that cross-border trade-based finance fraud cannot be mitigated using just local registries. SWIFT’s global reach is the perfect solution to help institutions to combat this problem.

He further added that using API standards, security, and identity, SWIFT can curb the increasing risk posed by digital islands.

It is also worth noting that MonetaGo received a Financial Sector Technology & Innovation POC grant in December last year. The grant provides funding for the development, experimentation, and dissemination of new technologies in the financial services vertical.

Using the funds, MonetaGo and 25 other organizations have experimented on methods to locate and prevent instances of duplicate financing related to purchasing orders, invoices, and warehouse receipts so that financial institutions will not be required to reveal commercially sensitive information to each other.

Most importantly, the platform is not only being offered to traditional financiers and banks, but also to non-bank lenders including fintech companies that operate in the trade financing vertical, thus benefitting a wide array of end-users as well as customers.

Source Credits –

https://www.businesswire.com/news/home/20210912005030/en/MonetaGo-Provides-First-Ever-Global-Solution-to-Duplicate-Financing-Fraud-in-Trade-Finance