When BNP Paribas partnered with Kantox in September 2019, the bank referred to demand from corporate clients for improved efficiencies in cash-flow forecasting through a fully automated hedging solution as a justification for the tie up with the currency management fintech.
The product was developed in 2016 to automate FX risk management, giving corporates real-time visibility of FX exposures and hedging transactions to minimise the profit-and-loss impact of transactional FX risk.
The rationale for the partnership was simple, explains Jacques Levet, chief digital officer at BNPP, who adds: “If a solution exists to a problem that our clients haven’t solved yet, why try to reinvent it?”
It is very unusual for the bank to acquire a fintech firm outright, which is why it uses partnerships to test the product, to see if it delivers the promised value.
Kantox has built an end-to-end solution and a rules-based engine that mirrors the hedging policy of the...
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