Silicon Valley Bank, Kantox Team On Currency Risk Management Tech

Silicon Valley Bank (SVB) and British FinTech Kantox have expanded their partnership so the bank’s customers can avail themselves of Kantox’s automated currency risk management tools, the companies announced in a press release.

The tool at the center of the arrangement is called Kantox Dynamic Hedging, according to the release.

“…SVB clients will be able to leverage a fully automated [foreign exchange (FX)] risk management solution that can help them to minimize risk, reduce costs and gain a competitive edge when operating across borders,” the release stated.

The tool can offset risks by booking and reconciling transactions “in real time … with minimal human intervention,” according to the release.

SVB Head of FX Advisory Paul Jennings said in the release: “SVB innovation clients conduct business globally from inception and are always looking for improved efficiency in managing their FX risk and optimizing execution through automation.”

Kantox Co-Founder and CEO Philippe Gelis said in the release that the pairing “will create greater efficiencies for treasurers and provide added value to SVB’s current FX services.”

Kantox clients come mainly from the food, travel, chemical, eCommerce, manufacturing, oil and gas sectors, according to the release.

The new arrangement between SVB and Kantox comes a time when many operators of businesses — especially smaller ones — continue to struggle with the speed and transparency of international currency transactions.

Marius Bausys, founder and CEO of cross-border B2B payment FinTech ArcaPay, told PYMNTS in April: “When it gets to the point that sending cash via FedEx will be faster and offer more visibility than making another kind of transfer, that’s when clients get frustrated. No one really expected that the electronic journey of money will or should take longer than the physical.”