French financial institution BNP Paribas has announced a FinTech partnership to strengthen its foreign exchange service offerings.
The bank said in a press release this week that it is collaborating with Kantox, a foreign exchange technology firm, in a deal that will allow BNP Paribas to offer its own corporate customers Kantox’s Dynamic Hedging tool. The bank noted that the solution will be available to business clients in Europe, the Middle East and Asia (EMEA) regions.
Kantox Dynamic Hedging is a software tool for corporate treasurers to automate FX management, and will be integrated into the BNP Paribas digital banking platform Centric, the companies noted.
“We are pleased to jointly offer our award-winning Dynamic Hedging solution to BNP Paribas’ corporate clients,” said Kantox CEO and Co-Founder Philippe Gelis in a statement. “Our solution allows treasurers to automate FX management and leverage micro-hedging to save time and streamline workflows. We believe that our offering, combined with the financial strength of BNP Paribas as a banking partner, is an attractive value proposition for their existing corporate client base.”
“When it comes to managing foreign currency risk, we are seeing a real need for our corporate clients to improve efficiencies in forecasting their future cash flows, formalizing hedging practices and optimizing execution through automation,” added BNP Paribas Co-Head of Corporate Rates, FX and Local Markets Sales EMEA Xavier Gallant, in another statement. “BNP Paribas’ partnership with Kantox will offer corporate treasurers in EMEA the opportunity to access a fully automate hedging solution and ultimately improve their treasury processes.”
Last year Kantox announced a separate collaboration with treasury management company Bellin, which integrated Kantox’s FX management tool into Bellin’s Treasury-as-a-Service offering.
The FX company spoke with PYMNTS last month about the role that automation plays in enabling corporates around the world to manage and mitigate FX risk.
“FX is much more about deciding how you want to manage risk, than executing transactions,” Gelis said. “A business must decide what their risk appetite is, how much risk they want to hedge, what kind of financial products they need. And then it’s also about execution and making sure you stick to your hedging policy.”