Financial Trade

Support Service for Emerging Markets

Fraud Prevention for Foreign Exchange Trades Using Blockchain

 

HOW IT WORKS

Current Process

Manual and Cumbersome

Email Documents *

Client emails softcopy of underlying document to bank

Submit Hardcopies

Client visits bank branch and submits hardcopy of the underlying document

Manual Verification

Bank teller checks the hardcopy of the underlying document and ensures that they are in proper order

Internal System Update

Bank branch uploads the underlying documents into their internal system

Trade Capture

Bank records trade in their system after trade is executed with client

Post-Trade Verification *

Bank’s Treasury Operations team verifies softcopy of underlying document

Complete Statement Letter

Client completes statement letter

Apply Stamp Duty & Certification

Bank teller applies stamp duty on the statement letter and certifies the hardcopy of the underlying document

Duplication Check

Bank is only able to check for duplication after the upload

01

02

03

04

05

06

07

08

09

* Some banks require a softcopy of the underlying document to be emailed/faxed pre-trade

NETWORK EFFECT

The more participants using the network, the better.

60% Accuracy

90% Accuracy

FEW PARTICIPANTS

Network effects are not maximized. Underlying documents can be reused multiple times outside the network as banks cannot sync up on the documents used to support a trade. Limited activity will also mean that the Machine Learning’s knowledge base will be reduced and will produce less reliable detections and predictions.

MANY PARTICIPANTS

With increased usage in the network, the community collaborates to safeguard against fraudulent trades and trains the Machine Learning module to provide better accuracy in detecting unusual patterns its collective wisdom.

BENEFITS

Banks

Improve Operational Efficiency in Document Checking

Banks enjoy a streamlined checking process that reduced back and forth between multiple staff across different functions

Lower Market and Compliance Risks of Performing FX Trades

Banks are assured that documents submitted are checked pre-trade for duplication against those used for previous trades

Companies

Better Convenience in Trading FX with Banks

Companies enjoy time savings from sending one set of underlying documents to multiple banks for verification

Regulators

Greater Regulatory Enforcement

Improve Monitoring of FX Flows

Regulators enjoy diminished document fraud rate while reducing the operational costs involved in enforcing regulations

Regulators receive accurate data on FX flows within the country that supplement existing regulatory reporting

PARTNERS

UOB & Finlab Logo.png
63a291_cd36fb5fb8904ef78e8d18fba1d28596~
  • LinkedIn

© 2020 Nickel. All rights reserved.