Introducing Vayana's Trade Verification Service: Reducing fraud in trade finance

In trade finance, financial institutions face an ever-increasing risk of fraud. This article delves into the far-reaching consequences of fraud, explores the intricacies of trade finance, and how financial institutions can proactively mitigate fraud risks and safeguard their operations in the digital era, ensuring secure and transparent trade transactions.

Vayana Trade Verification Service helps detect fraud in an instance

Vayana Trade Verification Service (TVS), is designed to help financial institutions identify any discrepancies before it even proceeds to get funded. In this case, since TVS is equipped to verify a 100% of all the invoices coming in, in real-time, the round-tripped invoices would be caught the instant they pass through the system. Since all invoices are checked against a multitude of reliable sources, such as the government-stamped e-way bill infrastructure, the lack of validating data would instantly notify them to be counterfeit. Thus, TVS would serve as a formidable defence against such fraudulent activities

Financial institutions can now have both, fraud-proof trade financing and operational efficiency

While it is possible for financial institutions to replicate such a model with current practices, of ensuring all invoices are validated before funding, it would simply not be efficient. It would take significant time for the team to check through the growing volume of invoices before they would be able to put together a discrepancy report to push to the Risk and Operations team. Hence, the lender would go back to leaving the detection of fraud up to chance. With TVS, the lender can have both – 100% integrity in trade financed and operational efficiency. TVS significantly reduces the manual overhead costs associated with traditional verification processes, allowing institutions to allocate resources to more strategic uses. By proactively verifying the authenticity of trade transactions, institutions can safeguard their financial interests, protect their reputation, and maintain the trust of stakeholders.

In an era where digital transformation is evolving the trade finance landscape, financial institutions must prioritize risk mitigation and fraud prevention. With its real-time verification capabilities, TVS empowers institutions to detect and prevent instances of collusion, round-tripping of funds, and other fraudulent practices. Thus, enabling financial institutions to navigate the complex trade finance landscape with confidence, knowing they possess the tools to detect, prevent, and mitigate fraud risks effectively.

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