Nordea launches AutoFX, a hedging and FX autopilot for corporate treasuries

Published 

Nordea Cash Management and Nordea Markets announce the launch of AutoFX, the new autopilot for corporates seeking to automatically balance cash pools and manage foreign currency risk. Nordea is the first bank in the Nordics to offer this type of solution.

AutoFX was developed in collaboration with a large Nordic customer in the media industry, in an effort to help modern treasury functions automate their daily routines and risk management. After an 18-month pilot phase run together with a handful of customers, AutoFX will now be made available to all Nordea customers.

AutoFX enables customers to enter instructions on how their foreign currency exposures should be managed. The actual monitoring of accounts and execution of orders is handled by AutoFX in autopilot mode. As a result, accounts can be swept to reduce excess balances or, alternatively, topped up to eliminate negative balances. In addition, AutoFX can facilitate automated hedging strategies or provide solutions for optimising interest costs in a cash pool.

“AutoFX means less manual work and more time for the treasury to focus on other priorities and to support the business strategy. The AutoFX solution is part of our focus on creating an effective, digital treasury that directly addresses customer pain points and traditional inefficiencies,” says Erik Zingmark, co-Head of Transaction Banking at Nordea.

AutoFX received some impressive attention during the last EuroFinance conference in front of an international audience in Vienna, Austria. One of the pilot customers gave credit to Nordea and AutoFX as one of three reasons it won the 2016 EuroFinance award for Treasury Excellence.

At the award ceremony, EuroFinance recognised AutoFX, saying: “Together with its bank partner, Nordea, [this year’s winner] built a cloud-based FX solution. It has created a new hedging programme that uses advanced data insights to accurately forecast exposures and has also re-engineered many processes using the twinned themes of best of breed technology and a recognition of the importance of financial data.”

“New technology is changing the face of banking and the payment area. Collaboration and co-creation are increasingly important in terms of delivering future banking to our customers. AutoFX was developed together with our customers as a direct response to their need for a more efficient treasury in terms of both time and costs,” says Nils Waldmann, Digital Markets at Nordea.

Most recent episodes

Future Monetary Policy Path Sets Markets Against Central Banks

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management.

05:19

Podcast - Journeys to Treasury Deep-Dive: Cash Flow Hedge Accounting at JT Group

Listen to this audible case study, which provides a lens over the details of a recent cash flow hedge accounting project undertaking by the JT Group treasury team.

33:38

Podcast - Innovation as an Enabler: Sustaining Global Trade Finance in Uncertain Times

J.P. Morgan's Bayo Osolake, who joins Eleanor Hill (TMI) to discuss how treasurers can facilitate global trade in the currently turbulent macroeconomic environment.

13:07

Relative Normality On Horizon — But Divergent Monetary Policy Pathways Likely

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management.

06:34

Audio TMI - MMF Reform Proposals Threaten LVNAV Viability for European Treasurers

Proposed MMF changes currently being debated at European Commission level endanger the utility of one of the most popular forms of MMF used by corporate investors across the continent.

Audio TMI - Special FX

Two experts from NatWest share the inside track on how treasurers can better manage FX risks by shaking up legacy processes and old-fashioned thinking, improving data coll...

15:27

Audio TMI - Roadmap Towards a First-Class Group Treasury

As the perennial debate continues around the pros and cons of a centralised tre...

12:28

Audio TMI - How Etihad Covered all Three ESG Elements in One Sustainability-Linked Financing

Etihad Airways recently raised US$1.2bn in the first sustainability-linked loan in global aviation with terms that relate to all three areas of ESG.

13:26

Reducing Friction in International Payments: Five Steps for Treasury Teams

What are the steps that treasury teams can take to remove roadblocks in processing international payments? Daniela Eder, Gibran Maqsood, and Karsten Becker (Barclays) to answer this question.

30:31

Keeping the Plates Spinning: the Art of Treasury Project Management

Sandra Shen (Actualize Consulting) joins TMI's Tom Alford to offer professional insight into what defines successful treasury project management. 

18:27