IBM and MonetaGo team up to address trade finance fraud
With business digital payments adoption at record height, fraud in trade finance is also becoming evident. Businesses not having their own data systems and sharing customer information on wider platforms increases the risk.
In such, IBM has announced that it is partnering with a financial technology company, MonetaGo to address the trade finance fraud and the initial focus of this would be South East Asia.
MonetaGo’s solution offers a Secure Financing solution that addresses specific risks of duplication financing and fraudulent documents used in trade finance. The company had deployed this initially in India in march 2018 and is used by TReDS exchanges, commercial banks and non-bank financing companies.
The press note also states that the company’s Global Secure Financing solution has teamed up with SWIFT as a partner for worldwide deployment to provide banks access to a trade finance validation service via the bank cooperative’s Global API Gateway.
The company says its global rollout of a solution is timely as following a ‘spate of large-scale frauds in trade finance involving billions of dollars uncovered in 2020-2021’.
In working with IBM, MonetaGo can be integrated into we.trade, TradeLens and Peppol, creating a risk mitigation network across multiple platforms and applications that support and facilitate billions of dollars in financing.
we.trade is a bank-led consortium that uses IBM blockchain to automate settlement, risk mitigation and financing transactions among trading parties and their banks. Also, IBM acts as an access point for Peppol, an EDI standard for the exchange of electronic documents in B2G and B2B trade.
The press note stated that with this partnership, parties which would benefit are ‘not only financing institutions, but the end-users and customers of trade finance, and ultimately trade-reliant economies’.
As we look to expand this solution across the globe, partnering with IBM provides value on many levels, from technical know-how to deep relationships with governmental bodies and financial institutions”, said Jesse Chenard, CEO, MonetaGo.