MonetaGo has signed an agreement with Bahrain Fintech Bay to develop a trade finance registry in the Kingdom, in a bid to reduce the risk of invoice fraud and grow access to finance.
The registry will enable Bahraini banks to validate invoices in real time, tackling duplicate financing attempts, fraudulent invoices and use of falsified documentation, Singapore-headquartered technology provider MonetaGo said.
The lack of a unified system to detect these risks creates inefficiencies, increases the cost of lending, and limits access to finance, particularly for SMEs, it added.
The registry will be delivered through a strategic collaboration with technology incubator Bahrain Fintech Bay, which is owned by Benefit, operator of the country’s electronic network for financial transactions.
The initiative will start by targeting leading banks in Bahrain, but it will be open to all licensed lenders in the Kingdom.
GTR understands that initial workshops have already taken place, involving Al Salam Bank, Bahrain Islamic Bank, Bank of Bahrain and Kuwait, Kuwait Finance House and National Bank of Bahrain, as well as the Central Bank of Bahrain, Bahrain Development Bank and Bahrain Economic Development Board.
“This is more than a partnership; it’s a national effort to build foundational digital infrastructure that strengthens Bahrain’s trade finance landscape,” said Bader Sater (pictured, right), chief executive of Bahrain Fintech Bay.
“Through this initiative, we aim to empower SMEs, enhance market confidence, and reinforce Bahrain’s leadership in financial innovation.”
Neil Shonhard (pictured, left), chief executive of MonetaGo, added the initiative “will be the foundation for building public infrastructure that supports SME growth and strengthens Bahrain’s position as a regional fintech leader”.
Government figures show SMEs make up nearly 95% of businesses in the country, yet only 11% currently have access to finance, according to MonetaGo.
The company said it had already seen a considerable uptick in SME financing in other markets where its technology had been deployed.
In India, the number of micro and SMEs receiving financing has increased by more than 200% since 2023, which MonetaGo claims reflects lender confidence following the introduction of its Secure Finance system.
The Bahrain initiative, which is part of a wider programme of digital public infrastructure development, also aligns with the Kingdom’s ambitions to grow its financial services sector and further reduce its dependence on oil and gas, as set out in its Vision 2030 strategy.
The project is MonetaGo’s first in a Gulf Cooperation Council country, but GTR understands talks are underway to introduce registries elsewhere in the region.
The company has also agreed partnerships with factoring industry association FCI and banking technology giant Oracle Financial Services to develop fraud prevention tools for invoice finance programmes.
