International banking group Standard Chartered is joining forces with Ant International, the global digital payment and fintech provider, in a move to lower FX costs and enhance risk management for Ant International and its clients.
To achieve this goal, this collaboration looks to introduce an AI-Powered Treasury and FX Management solution that integrates Ant International’s Falcon Time-Series Transformer (TST) Model with Standard Chartered’s Aggregated Liquidity Engine (SCALE). This integration of the two platforms enables seamless data exchange, leading to real-time, AI-powered FX forecasting 24/7.
Jointly developed with Ant International, the integrated solution is part of Standard Chartered’s FX Automation Programme, which is designed to support the multi-currency booking and international vendor settlement needs in real time and 24/7. This helps businesses mitigate costs and FX volatility when transacting across borders.
“We continue to invest in our platforms and adopt cutting-edge technology to support our clients in effectively managing their risks and exposures, especially during these volatile times,” explained Madhu Menon, global head of SC PrismFX Sales at Standard Chartered. “Our latest collaboration with Ant International sets the path for an innovative approach to managing and hedging FX risk and costs for Ant International and its clients globally. We are looking forward to further expanding our collaboration with Ant International and continuing to shape the future of Treasury Management.”
With the integration of Falcon TST and SCALE, Standard Chartered can forecast Ant International’s FX exposures with more than 90 per cent accuracy, in turn enabling the bank to manage its FX risk more effectively and lower the client’s FX hedging cost, all in real-time and 24/7.
Easing cross-border challenges
“The expansion of our partnership with Standard Chartered marks an important step in our ongoing journey to leverage technology, including AI, for next-generation cross-border payment solutions,” added Kelvin Li, general manager of platform tech at Ant International. “By integrating Standard Chartered’s robust banking capabilities with Ant International’s innovative solutions, we are able to enhance the way businesses manage their global liquidity and FX strategy, so they can experience more efficient cross-border transactions.”
Falcon now forecasts Ant International’s cashflow and FX exposure on an hourly, daily and weekly basis, with over 90 per cent accuracy. It is currently used to process more than 60 per cent of Ant International’s transactions that involve FX conversion.
Standard Chartered Aggregated Liquidity Engine (SCALE) is a highly flexible FX solution designed to support corporates and financial institutions’ clients in pricing products or receiving payments in various currencies with guaranteed FX rates, available 24/7. Leveraging Standard Chartered’s extensive network, SCALE provides clients with access to FX liquidity, reduces FX risk, and streamlines settlements for seamless cross-border business flows.
Standard Chartered and Ant International say they are committed to innovating and exploring new technologies that serve businesses and their global transaction needs. As the volume of cross-border transactions continues to grow, both sides will continue to develop innovative solutions that allow businesses to transact across borders more seamlessly and securely.
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