Deeper the insight a bank has into their corporate customers cash-flows and exposures the better the FX hedging solutions they can provide. However, even large multinational corporates often struggle to identify exposures in a timely manner.
So it’s interesting to see that Deutsche bank the global leader in FX has partnered with FIREapps to provide customers with solutions that identify and manage their overall currency exposures. FIREapps integrates with customers enterprise resource planning (ERP) systems, and Deutsche integrates with FIREapps.
According to Fabio Madar, Global Head of Corporate FX Sales at FIREapps:
FiREapps, complements Deutsche Bank’s expertise in risk management and FX execution services and this partnership will add to Deutsche Bank’s comprehensive suite of electronic FX management solutions …… In our on-going conversations with our corporate clients, a common challenge and frustration voiced by CFOs and Treasurers is the difficulty of gaining a complete and timely understanding of their FX exposure.
Banks operate within silos, running many disparate (legacy) platforms across transaction banking, payments and FX trading that don’t communicate with each other.
This creates challenges for clients that require timely visibility across and into these silos to gain insight into cash-flows, balances, payments and positions, so they can manage their treasury and hedging operations effectively.
Banks are now looking to their Single-dealer platforms that straddle multiple back-end silos to provide clients with intuitive and seamless access to timely and integrated views of their various positions across these back-end silos (see pictures below).
Above are some Caplin UX designs for SDPs that provide clients with insight into currency balances, actual vs target hedge compared to the bank’s view of the currency weighting.