SWIFT India and MonetaGo partner to prevent banking fraud. SWIFT India, in collaboration with fintech company MonetaGo, is set to launch a Blockchain-based pilot program. However, this will facilitate fraud prevention for banks in a secure, reliable environment, and more importantly, to improve the efficiency and security of financial products, according to a press release published Nov. 20.
SWIFT has been operating in India since 1991. SWIFT SCRL and various Banks jointly created SWIFT India. Banks include Axis Bank; Bank of Baroda; Bank of India; Canara Bank; HDFC Bank; Citi; ICICI Bank; Punjab National Bank; Standard Chartered Bank; State Bank of India; and Union Bank of India.
MonetaGo’s proposed financial services network technology would prevent “fraud mitigation solutions to avoid double-financing and check authenticity” of electronically generated bills, or more familiar as E-way bills. Banks will use a Network, which will meet industry-level governance, security, and data privacy requirements. This will improve the efficiency and security of their financial products and procedures.
SWIFT India CEO, Kiran Shetty in a statement quoted, “SWIFT India is committed to providing significant value to the Indian financial community through digitization of trade. However, MonetaGo’s expertise in providing fraud mitigation solutions to avoid double-financing gave us the confidence to partner with them.”
SWIFT India and MonetaGo partner to prevent banking fraud. SWIFT India and MonetaGo partner to prevent banking fraud. Also, during September this year, the Union Cabinet of India approved a Memorandum of Understanding (MoU) on the collaborative research of DLT, with an objective to foster a better understanding of DLT and proposed areas where the technology can deploy to improve operational efficiency. Similarly, a number of leading banks jointly conducted the research “in the interests of the development of the digital economy.”
In March 2018, SWIFT published a report on how a DLT Proof-of-Concept (PoC) can help a Nostro account reconciliation. The results showed that DLT can provide the necessary functions of a Nostro account reconciliation while SWIFT’s Head of Research and Development, Damien Vanderveken said, “The PoC went extremely well, proving the fantastic progress that is with DLT and the Hyperledger fabric in particular.”
Earlier in 2018, MonetaGo announced a fraud prevention solution for trade finance. However, this is probably the first production blockchain solution in the sector. Also, it said that its technology and product suite leverages cutting-edge financial technology to enable critical real-time decision making. Solutions are easily accessible via simple interfaces and ready to deploy in heavily regulated environments.
“Given India’s focus on a digital infrastructure which is by both policy and technological innovation, it makes sense that large institutional players have interest in these products and initiatives,” said Jesse Chenard, CEO of MonetaGo. “However, this work is going to positively impact the information available to the banking industry at large.”