SINGAPORE AND NEW YORK–(BUSINESS WIRE)–Financial technology solutions provider MonetaGo has been selected by the Association of Banks of Singapore (ABS) to provide the Trade Finance Registry (TFR), an interoperable industry utility that bridges information silos between banks to combat duplicate funding fraud.
The TFR serves as a secure database for records of trade transactions funded by foreign and local banking institutions in Singapore. It also needs to connect to trusted information sources for validation checks of business data. The TFR mitigates the risk of double financing by different bank lenders for the same business transaction, and falsification of information provided by borrowers. The effect will be greater confidence among banks in the integrity of their customers and trade finance operations.
Currently, banks rely on their customers’ due diligence and transaction verifications of the underlying trade flows to make trade finance available to their customers. However, there are limitations as banks rely on documents that are susceptible to forgery. Additionally, banks are unable to determine if a particular transaction has been funded more than once, as these checks are limited to that particular bank or their banking network.
Information silos between different banks expose the banking industry to potential fraudulent activities such as duplicate funding or back and forth, where the same transaction is passed to multiple banks for funding.
World trade has experienced strong growth in recent decades. As a result, the demand for funding has also increased substantially. However, the recent discovery of large-scale fraud has highlighted issues in the trade finance space and brought the discussion about detecting and mitigating trade finance fraud to the fore. To mitigate this problem and strengthen and improve the resilience of the trade finance sector in Singapore, ABS launched a selective tender process to provide the solution.
In its winning bid, MonetaGo partnered with Singaporean financial technology provider GUUD to deliver a natively interoperable solution that connects to the global hash ledger of MonetaGo’s secure finance solution. The role of GUUD is to build the TFR’s user interface to the MonetaGo system. Banks must query the TFR using selected document information, which must be cryptographically hashed to create document fingerprints which are then pushed to MonetaGo’s secure and unified data repository to detect matches. near real time. Partial matches that represent similar suspicious transactions should be analyzed by a comparison service to return a risk classification of the transaction. The entire solution is delivered in a confidential computing environment, which means data is secure and protected from all parties, including the solution provider.
MonetaGo understands that TFR will be used as an industry utility for Singapore banks in their efforts to mitigate multi-funding risk as well as verify trade authenticity.
As regulated entities, banks are challenged with the amount of information they can share, which is a significant barrier to combating fraudulent activity. By leveraging cryptographic hashing technology, the TFR solution created by MonetaGo solves this problem in a regulatory-compliant way, providing much-needed visibility into what other banks have funded or undertaken payment obligations without breaching data protection rules.
“ABS is committed to maintaining integrity and trust in Singapore’s trade finance industry, and the TFR provides a very important layer of security to prevent multiple funding on the same trade transactions with multiple banks. This leads to greater trust between financiers and borrowers. We are delighted to have chosen MonetaGo to develop the TFR, leveraging their experience in this niche area and the use of their global hash ledger to detect fraud beyond national borders. TFR will be handed over to ABS and its designated operator after go-live,” says Ms. Ong Ai Boon, Director of the Singapore Banking Association.
“This successful victory of the National Industry Mandate reinforces MonetaGo’s recognition as the world’s leading provider of trade finance deduplication technology,” said Jesse Chenard, founder and CEO of MonetaGo. “The TFR built by MonetaGo will significantly improve the efficiency of trade finance in Singapore, mitigating the risk of double funding and ensuring that trust can be maintained globally in mitigating trade fraud.”
Construction work on the TFR is starting and commissioning is scheduled for the fourth quarter of 2022.
MonetaGo provides the world’s first-ever solution to combat duplicate funding fraud in trade finance, and is the world’s first provider of this technology to prevent domestic and cross-border duplicate funding.
MonetaGo’s secure funding system has proven itself in production, being operational since March 2018 with over 3 million transactions processed.
MonetaGo and its secure finance solution have won numerous accolades, including Best Fintech Startup in Trade at the GTR Leaders in Trade Awards 2022, Best Trade Finance Solution at the AMTD DigFin Innovation Awards at Hong Kong Fintech Week 2021 and the most effective bank-fintech partnership. at the 2021 IBS Intelligence Global Fintech Innovation Awards. For more information, visit www.monetago.com.