BNP Paribas’ Acquisition of Kantox Examined
The acquisition by BNP Paribas of currency management automation software provider Kantox is a progressive move for both parties, say Antonio Rami, Founder & Chief Growth Officer, Kantox, and Jacques Levet, Chief Digital Officer, Global Markets, BNP Paribas. They talk to TMI about what the deal indicates for their respective clients, and what bank acquisitions of fintechs, in general, means for the corporate treasury community.
Fintechs tend to be run by free-thinking creatives within a structure that enables the speed and agility required to execute their ideas. Major banks tend to be less agile but offer the trust and financial muscle that every corporate client needs. Put the two together and it should make for a winning partnership. But simply hoovering up every fintech in sight is not how the most diligent banks operate, and few fintechs will want to sell out their ideas, and ideals, to the first bidder that comes along. The best partnerships are always founded on mutual respect and need.
So it is with BNP Paribas’ acquisition of Kantox and its API-driven end-to-end currency management solution. The relationship, which goes back to early 2019, has been a deliberate courtship of one by the other, culminating in this new deal which, subject to the usual regulatory approvals, is on schedule for completion by early next year.
The bank says it aims to leverage its integrated business model to “accelerate the development of technological innovations, to enhance the customer experience, and to provide best-in-class capabilities to its clients”. Through the Global Markets business of BNP Paribas’ Corporate and Institutional Banking (CIB) division, and the business centres of its Commercial, Personal and Banking Services (CPBS) division, Kantox’s offering will be fast-tracked towards BNP Paribas’ large corporate, SME and Mid-Cap clients across the globe.