In the wake of the COVID-19 crisis and the economic disruption caused by the pandemic, high-profile cases of fraud in trade finance with significant financial harm have brought to the spotlight intentionally deceptive actions designed to provide the perpetrator with an unlawful gain or to deny a right to a victim (fraud) to the trade and finance community
Against this background, and bearing in mind the importance of risk mitigation strategies for trade finance transactions, G-NEXID launched a series of webinars on 7 December 2021 dedicated to information exchange, sharing of best practices, and capacity building on fraud prevention.
In the aftermath of the first session (7 December 2021) dedicated to the analysis of recent cases and presentation of a toolbox for preventing fraud in trade finance, the second session (12 January 2022) addressed the opportunities of digitalisation through fintech platforms and technologies.
Thanks to the expertise of 3 leading tech companies (Arviem, DEMICA and INVIOU) and the contribution of a specialist publishing company dedicated to the provision of market information on areas of receivables finance including factoring and supply chain finance (BCR Publishing Ltd), the webinar on ‘Digital solutions to fraud in trade finance’ addressed the following issues:
- Overview of the current state of digitalisation within receivables finance.
- Advantages of digitalisation and what the future might look like in a fully digitalised receivables finance world.
- Role of banks in driving digital transformation to increase revenue growth through faster cycle times and improved customer experience, reduced costs due to automatisation, and improved risk outcomes through more effective fraud monitoring and overall improvement in operational risk management.
- Key digital solutions form the award-winning working capital solutions platform DEMICA.
- Fraud prevention in receivables finance through a digital, centralised registry platform: INVIOU.
- Internet of Things (IoT) to prevent fraud in trade finance and the value proposition of Arviem’s products.
The speakers highlighted the importance of collaboration among financiers, tech companies, and the physical supply chain for effective and efficient digital solutions to fraud in trade finance.
The detailed report is presented in the Yearbook for 2022.