Financial services provided in India will be improved upon with the use of Blockchain Technology. This improvement will be brought about by SWIFT India after its collaboration with the Fintech firm, MonetaGO. Accordingly, it will help to fight fraud in the banking industry because the services provided will be transparent, secure, and more efficient.
India is Open-Minded to Blockchain Technology
India of recent has been open-minded about Blockchain technology and its direct application in the banking sector. A few months ago, a Memorandum of Understanding (MoU) was approved to allow banks to carry out research on the distributed ledger (DLT). The research was to give more understanding on Blockchain technology and ascertain areas in dire need of its application.
Therefore, it seems an area of application has been discovered since banks will now have to use a shared DLT network. This is a system that complies with the guidelines of the regulators of the industry. The guidelines are targeted at security and data privacy which will improve efficiency as well as the security of financial products.
Jesse Chenard, 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.
SWIFT India, Committed to Providing Beneficial Services to Banks
While commenting on the partnership between both firms, Kiran Shetty, CEO of SWIFT India said that the company is committed to digitizing trade processes that will be beneficial to the Indian banks. MonetaGo, on the other hand, will provide solutions that will reduce the level of fraud in the industry. This will check the authenticity of electronically generated bills and also prevent double-financing.
SWIFT India is also known as SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication). This is a platform that provides messaging services to different organizations. It aims to provide a secure and efficient means for these organizations to share financial information.
MonetaGO is a New York-based company that offers Blockchain solutions to financial institutions. In 2017, the company partnered with the Reserve Bank of India to create a pilot program using blockchain. Since then, it has been providing solutions that will facilitate payments.
Financial institutions are adopting Blockchain technology as a possible solution to some of the problems faced. That can also be said for the transportation industry and construction industry. The former has developed an identity management system to store the information of its workers. When it comes to the construction industry, there are hopes that its implementation will reduce the level of corruption.