IBM, MonetaGo Team Up to Tackle Trade Finance Fraud

IBM is partnering with FinTech startup MonetaGo to tackle trade finance fraud, and it will set its sights first on Southeast Asia, according to a press release.

MonetaGo offers a secure financing solution that works to lower the risks that are associated with duplicate financing and fraudulent documents used in trade finance, Trade Finance Global reported.

Last month, MonetaGo CEO Jesse Chenard told PYMNTS duplicate financing fraud is hard to quantify because it is only discovered when someone gets caught.

Read more: Duplicate Financing Fraud Faces New Foe That Sheds Light on an Elusive Thief

Because lenders have their own data systems and don’t share customer info, fraudsters can secure duplicate financing in the country of origin, the destination country as well as in a financial center — all on the same order, Chenard told PYMNTS.

MonetaGo rolled out its services in 2018 in India, where they are used by the Trade Receivables Discounting System (TReDS), commercial banks and non-bank financing companies, according to Trade Finance Global. The company’s global Secure Financing solution has teamed with SWIFT to provide banks access to a trade finance validation service via the bank cooperative’s Global API Gateway.

“This thought-through approach of breaking down information silos between institutions while maintaining the privacy of customers’ data is an effective method to resolve trade finance problems,” IBM ASEAN General Manager Martin Chee said in the release.

Big companies as well as small- to medium-sized businesses (SMBs) are often left out of trade finance access because of lenders’ aversion to risks. MonetaGo aims to lower risk for banks by giving them more time to “extend their books of business,” the report stated.

Working with IBM, MonetaGo can be integrated into, TradeLens and Peppol, which will work toward closing the gap in global trade finance, according to the release.

“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,” Chenard said in the release. “By working with IBM, we know we can provide value to their clients in many countries in record time.”