efcom and MonetaGo join forces to future-proof the factoring industry
Negotiated and signed: Federico Avellán Borgmeyer & Florian Hinse as
members of the efcom Management Board. Image courtesy of efcom.
The partnership will fully and seamlessly secure the region’s factoring process against fraudulent actors, enabling factors to lend with confidence.
Frankfurt, Germany, 30 March 2023 - efcom gmbh, a leading provider of factoring software solutions, has announced a new partnership with MonetaGo, the world's foremost provider of duplicate financing prevention technology. The partnership will see MonetaGo's Secure Financing platform integrated into efcom's core factoring platforms, providing financiers with an additional layer of security and increasing trust in the factoring industry amid rising demand.
“Effective fraud prevention is undoubtedly one of the biggest and most important challenges facing the finance and thus also the factoring industry – every day anew, and this will concern us more rather than less in the future,” notes Arnulf Romann, CEO of efcom. “From that perspective, our partnership with MonetaGo is a hugely significant step towards additional confidence in our mature factoring solutions.”
MonetaGo's Secure Financing system leverages best-in-class technology to prevent duplicate financing in near real-time. Digital fingerprints of the documents used in factoring, such as invoices or purchase orders, are created by using a hashing algorithm, and these fingerprints are registered in a global hash registry which acts as a secure unified repository. If the same document is registered on the system by more than one lender, the system will flag all duplicates after the first unique instance is registered. Additional authentication services availed through the same system also provide greater assurance to lenders on the integrity of their financing transactions.
With growing worldwide adoption, MonetaGo’s technology has become the global standard in the fight against trade and supply chain finance fraud. It is the first third-party service in trade available through the Swift API channel, and can be accessed by all 11,000+ institutions on the Swift network. In Asia, MonetaGo’s Secure Financing system has supported the growth of the Reserve Bank of India-supported Trade Receivables Discounting System, and underpins the Association of Banks in Singapore’s Trade Finance Registry, which bridges information silos between banks. In Europe, MonetaGo is currently part of a ground-breaking digitisation initiative led by the International Chamber of Commerce UK to shut fraudsters out of trade.
“With the current economic situation expected to increase European companies’ cash flow needs, this partnership comes at a critical time for the industry,” says Neil Shonhard, CEO of MonetaGo. “With efcom, MonetaGo is taking a significant step towards bringing its standards-based approach to detecting and preventing fraudulent activity to the factoring industry in Europe, creating the blueprint for a safer and more efficient financing ecosystem.”
MonetaGo's Secure Financing system is being integrated immediately into ef3 and efX, efcom's solutions for domestic and international full-service factoring, in-house factoring and supply chain finance. Initial roll-out will be in efcom’s core markets of Germany, Slovenia and Austria, ahead of expansion into the rest of Europe.
About efcom
efcom is a leading provider of factoring software solutions. Founded and headquartered at the heart of Europe's financial capital near Frankfurt/Main over 20 years ago, it now serves nearly 50 renowned financial institutions such as Deutsche Bank-Postbank, HSBC, BNP Paribas, Unicredit, BBVA, Eurofactor, Raiffeisenbank, Allianz-Bank, NovaKBM, fintechs, large corporations, and many more. In 2022, efcom's clients achieved a factoring volume in excess of €200bn with over 100 million invoices and over 1 million buyers and sellers. efcom's core factoring platforms, ef3 and efX, provide core receivables finance functionalities for domestic or international full-service factoring, in-house factoring, supply chain finance, and more. Learn more at www.efcom.de/en/.
About MonetaGo
MonetaGo is a provider of best-in-class fraud detection and prevention solutions. Its Secure Financing systems enables banks, traditional financiers, non-bank financial institutions, fintechs, and trade finance funds to check for duplication 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 has recently been awarded Best Fintech Startup in Trade 2022 by Global Trade Review, while its Secure Financing solution has been recognised as Best Solution in Trade Finance at the AMTD DigFin Innovation Awards at the Hong Kong Fintech Week 2021, and as Most Effective Bank-Fintech Partnership at the IBS Intelligence Global Fintech Innovation Awards 2021. For further information, please visit monetago.com.
