Moneta International Connects Businesses and Lenders as Regulations Change
Since the global financial crisis hit in 2008, many banks have been forced to ‘tighten their belts’ by
lending less and steering clear of less profitable clients. Businesses are bearing the brunt of this climate
of increasing regulation and scrupulous lending.
Stringent new regulations on capital and liquidity set up after the financial crisis have come at the
expense of many legitimate businesses, deemed as the banks’ least profitable clients.
One fintech start-up which is successfully solving the issues both companies and banks are faced with in
this climate of tighter financial regulation and control is Moneta International.
Moneta International is a fintech startup, based in Lithuania. It also has locations in Singapore and
Poland. The company has been operated for the past two years by fintech veterans to create a better
way of doing business.
“It’s a fresh new movement compared to the old, traditional banks.” says Eyal Nachum, managing
partner at Moneta International.
In an attempt to stifle the flow of dirty money, financial institutions now operate ‘de-risking’ policies.
Businesses located in places or operating in sectors considered as posing a high risk for moneylaundering,
financing terrorism or skirting sanctions have, post financial crisis, been dropped by banks.
The push to “de-risk” clients is negatively affecting many legitimate businesses. These businesses now
have issues with their banks. Many are faced with the challenge of restricted access or financial
exclusion resulting from the withdrawal of banking services.
However, rather than targeting the banks, which have been responding rationally, business leaders
blame the problem predominantly on policymakers and regulators. As The Economist notes, these
leaders’ “dire warning about entire classes of client and their imposition of swingeing fines have been an
New controls are an attempt to stamp out the flow of dirty money, but clearly come with downsides. A
solution lies in financial technology, designed to identify suspicious transactions.
A year ago, Moneta International announced its intention to invest more than $1 million into its
Lithuania operations and expand its operation outside the EU (in Singapore and other parts of Asia),
especially when billions of dollars are coming from Asia into Europe. The startup has developed a
platform aimed, predominantly, at online E-commerce and offline merchants.
Moneta International is solving many of the issues legitimate businesses face in the wake of tighter
lender regulations by acting as a buffer between businesses and banks. With innovative and interactive
tools, Moneta International efficiently maps a company’s transaction flow promoting greater
Moneta International understands both the financial institutions’ need for compliance and the
companies’ need for smooth running transactions and payments. So the fintech startup maps in detail
merchant activity, effectively acting for both parties.
Banks are dedicating significant amounts of time, effort and due diligence to mapping consumer
transactions. So by detailing merchant activity and mapping transactions in advance, the Moneta
International system is proving invaluable to banks.
For the banks’ business clients, Moneta International is also accommodating. The company’s mapping of
transactions is of most help to those businesses hit hardest by the new regulatory climate. This includes
legitimate businesses suffering due to tighter regulations and ‘de-risking’ policies or because they are
regarded as being ‘less profitable’. Some are finding it difficult to open a bank account or secure finance.
Moneta International’s system, with its in-depth analysis of transactions, relies on advanced tools and a
wide network of partners. But it provides banks with a clear picture of merchants. Moneta
International’s online system maps merchant activity and screens transactions before they even reach
the banks. Consequently, banks have greater security and a more detailed and clearer picture of their
clients. This, in turn, helps support long term and more profitable relationships between banks and their
It’s true they assist businesses in acquiring banking services, finance and greater financial freedom to
operate and grow. However, it is essential fintech companies like Moneta International also collaborate
with and support banks.
As Nachum explains, “I’ve never seen a fintech company that works without a bank. So, I don’t believe
fintech companies will replace banks. There is no serious fintech company that works without a banking
partner. The banks are our partners.”
Companies from a diverse range of industries are using Moneta International’s user-friendly and secure
online cash management platform. These include businesses in segments traditional banks deem as
being ‘high risk’, such as gaming, ecommerce, affiliate marketing and others.
As The Economist writes, finding a way out of the problems ‘de-risking’ creates for both banks and
businesses requires a “new approach to financial regulation — one that accepts that mistakes can be
made in good faith.”
Financial technology offers another kind of solution. By acting for both parties in its diligent screening of
transactions, Moneta International is helping banks overcome the challenge of attracting new
businesses in a climate of stringent banking regulations and policies.
In short, this burgeoning fintech startup, and others like it, are essentially lessening the regulatory
burden placed on both banks and businesses in the wake of the financial crash and crisis that followed.