Risk Management
Published  3 MIN READ

Easing the FX Burden: Why Treasurers are Turning to Fintech


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reasurers and CFOs are the company commanders of foreign exchange, currency hedging, and international payments. Kantox, a leading fintech company, is helping businesses to overcome complex FX challenges with an innovative automated micro-hedging solution called Dynamic Hedging – a worthy winner of TMI’s 2018 Technology Innovation Award for the Best Risk Management Solution.

Manual processes, FX volatility, and lack of visibility over FX exposures are among the major challenges faced by corporate treasurers when managing their multi-currency flows. And for some companies, the difference between profit, loss, and even bankruptcy, can come down to how well they manage their FX exposures. This is precisely why the judges were looking for a Risk Management Solution that was scalable, automated and effective – leveraging the latest technology to help solve the myriad FX challenges faced by many treasurers.

As Philippe Gelis, CEO, Kantox, explains: “With fierce competition across many industries and profit margins continuing to be squeezed, Kantox believes that, with the right technology, FX can be approached as a tool to be leveraged, rather than a burden to be managed. To this end, we launched our Dynamic Hedging solution in 2016. We then expanded the functionality significantly in 2018, with the introduction of Dynamic Hedging Analytics (DH Analytics), a live, data-rich dashboard.”

The dashboard provides real-time insights into a company’s hedged and unhedged exposures, allowing users to see high-level information at a glance, or to drill down into the detail. DH Analytics also allows treasurers to streamline their reporting process and gain better visibility for cash management purposes. And by switching from Excel to a live platform, data is visually represented, removing the need for manual analysis.