Foreign Exchange
Published  4 MIN READ

A Dynamic Partnership: Bank-Fintech Collaboration Improves FX Risk Management

For the treasury community, one of the hallmarks of 2019 was the growing collaboration between fintechs and banks. Nowhere is this more evident than in the partnership that Kantox and BNP Paribas have forged, helping treasurers to improve their foreign exchange (FX) risk management processes by leveraging sophisticated technology, while strengthening their bank relationship. This unique collaboration is a deserving winner of TMI’s 2019 Award for Solution Innovation – FX Risk.

Managing FX risk has long been a headache for treasurers – with many citing excessive manual processes, lack of visibility over FX exposure and FX volatility as key challenges. To help treasurers solve these pain points, Kantox designed an innovative software solution, called Dynamic Hedging [1] which enables corporate treasurers to completely automate, hedge small or large transactions in bulk, and to streamline FX workflows.

Since its launch in 2016, Dynamic Hedging has achieved significant traction among SMEs and small mid-caps. The solution’s popularity only increased when Kantox expanded its functionality significantly in 2018, with the introduction of Dynamic Hedging Analytics – a live, data-rich dashboard. Nevertheless, as Philippe Gelis, CEO and Co-Founder, Kantox, explains: “Larger corporates were reluctant to use Kantox to execute FX trades, due to their preference to continue using their existing banking partner or partners.”

As such, Kantox began searching for a way to reach a wider audience of treasurers. And in 2019 Kantox and BNP Paribas announced a strategic partnership to jointly offer Dynamic Hedging to BNP Paribas’ clients across EMEA, complementing the product suite available on the bank’s digital banking platform, CENTRIC.