MonetaGo, an enterprise financial product company based in New York, announced that they have partnered with SWIFT India (The Society for Worldwide Interbank Financial Telecommunication) for a pilot programme to improve the Indian banking services through the use of distributed ledger technology. SWIFT India is a joint venture of SWIFT SCRL and many Indian banks which includes names such as Axis Bank, Bank of Baroda, Bank of India, Canara Bank, Citi, HDFC Bank, ICICI Bank, Punjab National Bank, Standard Chartered Bank, State Bank of India and Union Bank of India. SWIFT India aims to keep a tab on the domestic banking network and understand the market needs for banking improvement.
As per the details available, MonetaGo will integrate its cutting-edge financial technology through standardized SWIFT financial messages, on which a shared distributed ledger network will be designed and used by the banks. This will improve the security and privacy of the financial data products and operations. The network will be compliant with industry's best practices and regulations.
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."
Earlier this year, MonetaGo had announced the launch of a Fraud Mitigation Network in India which can be used as a common platform by any financial institution to share financial information in a secure environment helping reduce fraud around receivables financing.
Jesse Chenard, CEO of MonetaGo, further added:
"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,"
Distributed ledger technologies hold immense potential for the finance sector in India. While the government push on distributed ledger technologies such as blockchain is welcome, they need to open up to cryptocurrencies to reap the benefits of this new paradigm.