The Trade Receivables Discounting System (TReDS) platforms in India have migrated the invoice fingerprinting solution from DLT to confidential cloud computing. The new solution, referred to as “Secure Financing” is standards-based and can handle many millions of documents and multiple document types.

The expanded connectivity for TReDS providers means the global standard for privacy-preserving fraud prevention technology is now in India. “Domestic and cross-border trade continues to grow year-on-year, contributing substantially towards the well-being of Indian SMEs and thus the Indian economy”, said Imran Khan, Executive Director of the International Chamber of Commerce (ICC) India. “A standards-based system with global reach provides industry practitioners with an enhanced level of fraud prevention to help reduce risk.”

TReDS platform providers, Receivables Exchange of India (RXIL), M1Xchange, and Invoicement, are all carrying out operations on the live global system with trade and finance fraud prevention leader MonetaGo’s Secure Financing solution.

Neal Harm, Secretary General of FCI, the global representative body for factoring and financing of open account domestic and international trade receivables, says, “The importance of adopting risk-mitigation strategies which include fraud prevention checks cannot be overstated. Utilising accessible and scalable technology and implementing best practices will aid the continued growth of India’s domestic and international trade receivables market.”

The TReDS service has seen ongoing growth with a 55% increase in invoices financed in 2023 from the previous year, according to Reserve Bank of India (RBI) statistics1. Neil Shonhard, CEO, MonetaGo, is encouraged by both the uptick in financing value and expansion of fraud prevention capability, saying “The value added by TReDS is critical to the safeguarding and ongoing expansion of the trade and receivables industry, and to continue to experience year-on-year growth.”

Ketan Gaikwad, CEO of RXIL, said “India is an early adopter of fraud prevention measures which have delivered a more secure local receivables finance market. Add to this the recent enhancement of TReDs capability and we are confident that it will provide a solid footing for the trajectory of the RXIL business.”

“There is substantial opportunity in the Indian trade and receivables market, and the expanded connectivity and capability with the Secure Financing system will ensure the opportunity is not lost to fraudsters,” said Sundeep Mohindru, Promoter & Director, of M1Xchange. “The trade community has worked hard to reduce risk, and this has allowed greater access to funding by MSME’s, a vital part of the economic ecosystem.”

On TReDS exchanges moving to the new cloud-based infrastructure, MonetaGo CEO Neil Shonhard said, “The RBI and Indian factoring and trade finance community have paved the way in adopting the global standard in the prevention of duplicate financing fraud. MonetaGo will continue to deliver on its commitments to fraud prevention, allowing lenders to offer greater liquidity to MSMEs.”

TReDS was launched by the RBI in 2017, MonetaGo’s confidential computing technology underpins the TReDS service to provide duplicate financing checks in a privacy-preserving manner, safeguarding data and ensuring confidentiality for all parties involved.

About FCI Member, MonetaGo

MonetaGo is a provider of best-in-class fraud detection and prevention solutions. Its Secure Financing systems enable banks, traditional financiers, non-bank financial institutions, fintechs, and trade finance funds to check for duplication and authentication of financing requests linked to invoices, bills of lading, air waybills, warehouse receipts, purchase orders, and other trade-related documents.

Since entering full production in 2018, Secure Financing has processed millions of transactions and has been integrated into Swift's API-enabled infrastructure as the first third-party service on Swift, providing its member institutions with an important tool to combat duplicate financing fraud in trade and supply chain finance.

MonetaGo and its Secure Financing solution have won numerous accolades, including Best Fintech in Trade at the GTR Leaders in Trade Awards 2023, Best Fintech Startup in Trade at the GTR Leaders in Trade Awards 2022, Best Solution in Trade Finance at the AMTD DigFin Innovation Awards during the Hong Kong Fintech Week 2021 and Most Effective Bank-Fintech Partnership at the IBS Intelligence Global Fintech Innovation Awards 2021. For further information, please visit www.monetago.com.