Among many of the fields trying to incorporate blockchain technology to provide a relatively secure means of communication this has to be the latest addition. Recently, SWIFT India, the provider of financial messaging services has announced its partnership with MonetaGo, one of the leading companies providing fintech. MonetaGo’s financial services network technology will be integrated through standardized SWIFT financial messages. Reportedly, the organization have come together to create a distributed ledger network that would exhibit industry-level governance, security and data privacy that would be an improvement to the security of their financial products and will also make them more efficient. Mr. Kiran Shetty CEO of SWIFT India said,
SWIFT India is committed to provide significant value to the Indian financial community through digitisation of trade. MonetaGo’s expertise in providing fraud mitigation solutions to avoid double-financing and check authenticity of e-way Bill gave us the confidence to partner with them.
SWIFT India is a joint venture that was established by SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication) that brings together almost 10,500 financial institutions and corporations across 215 countries. It is based on SWIFT technology and has been providing messaging services to domestic market infrastructures, the banking and corporate sectors. SWIFT has enabled the associated financial community to exchange automated messages and the financial in a secure and reliable fashion. The risks that are often associated with the exchange of confidential messages in the supply chain financing are minimized by the incorporation of secure protocols.
MonetaGo has being providing blockchain based solution using the Hyperledger Fabric for to cater to many of the problems faced by the fintech industry to minimize the risk involved in supply chain financing and to help increase the capital efficiency, make it easily accessible and obtain better return rates for the investors. This platform digitizes the entire issuance process with high speed. MonetaGo can support multiple technologies and is compliant to all existing regulatory framework. Through this newly formed partnership, SWIFT India and MonetaGo plan to build a fraud mitigating distributed ledger network. Jesse Chenard, the CEO of MonetaGo said,
Given India’s focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives. This work is going to positively impact the information available to the banking industry at large.
To lessen the fraud conducted by investors, MonetaGo also announced earlier this year, that it will be introducing Fraud Mitigation Network in India, a common platform with no central authority overlooking it, as opposed to the traditional system where a financial institution is in charge of holding and sharing confidential financial information.
While cryptocurrencies have been regulated in India, blockchain has also been sprouting many use cases for various sectors. This year the Union Cabinet of India approved a Memorandum of Understanding (MoU), on the research of the distributed ledger technology, to help masses better understand its application to benefit from them. Participating in this research will be a number of leading banks which will inadvertently aid the digital economy of India.
To conclude, blockchain has a number of use cases in the Fintech Industry, and many of them are being discovered with every passing day. Its utility is increasing exponentially within these territories owing to the fact that it has many properties etched within that promote transparency, immutability and security. The trust in central authorities has been declining due to a number of reasons that makes the whole system vulnerable. Incorporating blockchain based solutions has promoted trust in them. This is why many of the companies providing financial solutions are integrating the DLT technology.