Modernising trade finance systems – The Business & Financial Times

By Michael Kofi FOSU

In an era of increasing global volatility, Ghana’s financial sector stands at a critical crossroads.

For commercial banks and financial institutions, the dual challenges of managing non-performing loans (NPLs) and navigating the complexities of trade finance now demand more than traditional banking practices. They require technological innovation and strategic collaboration.

A new multi-party partnership involving ITFP, MonetaGo, Monarch Associates and Enigio is introducing a suite of solutions designed to modernise trade operations, prevent fraud and recover lost value in high-risk financial environments.

A unified financial infrastructure

The collaboration combines global expertise with continental and local execution to address some of the most pressing challenges facing Ghanaian banks.

• ITFP Ghanaprovides continental and local market expertise, specialising in trade finance structuring.
• MonetaGooffers a world-class fraud prevention and invoice registry infrastructure that prevents duplicate financing — a critical safeguard for lending institutions.
• Enigio ABdelivers “trace: original”, a secure digital documentation platform that ensures document integrity and legal compliance.
• Monarch Associatesspecialises in global debt recovery and asset tracing, helping banks reclaim value from complex cross-border defaults.

Strategic benefits for commercial banks

For Ghanaian banks seeking to strengthen balance sheets and improve operational efficiency, the collaboration highlights three key strategic areas.

Strengthening NPL management

Banks can outsource complex debt recovery processes to Monarch Associates and ITFP, particularly in challenging cross-border cases. This full-spectrum service covers asset tracing, legal coordination and recovery management.

The model is success-based, meaning banks only pay fees after funds have been successfully recovered. Recovery timelines are targeted at 24 months or less, significantly faster than many traditional litigation processes.

Tackling trade finance fraud

Integrating MonetaGo’s platform enables banks to access a secure registry designed to prevent invoice fraud and duplicate financing.

Evidence from international markets highlights its potential impact. In India, adoption of the platform contributed to a 206 per cent increase in MSME financing and a 36 per cent rise in liquidity providers participating in trade finance markets.

The system is also designed for local integration with institutions such as the Bank of Ghana, the Ghana Revenue Authority and national collateral registries.

Driving efficiency through digitisation

Enigio’s digital documentation platform allows banks to transition away from slow and costly paper-based processes.

Transactions that traditionally take weeks can be completed within hours. Digital documentation also provides legally recognised, audit-friendly records while ensuring the authenticity and security of trade finance instruments.

Measuring performance

To ensure measurable outcomes, the partnership emphasises clear key performance indicators aligned with banking leadership priorities, including:

• NPL recovery rates, improving financial performance through expert-led recoveries

• Time-to-cash, reducing the duration of trade transactions

• Fraud detection, using advanced registries to prevent double financing

The way forward

The partnership is currently engaging financial institutions through system integration assessments and onboarding workshops.

By adopting these solutions, Ghanaian banks have an opportunity to modernise trade finance operations, strengthen risk management frameworks and enhance the country’s overall ease of doing business while reducing exposure to trade and credit risks.

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