Silicon Valley Bank (SVB) and UK FinTech Kantox have extended their partnership so that the bank’s clients can take advantage of Kantox’s automated currency risk management tools, the companies said in a press release.
The tool at the center of the arrangement is called Kantox Dynamic Hedging, according to the release.
“… SVB customers will be able to take advantage of a fully automated system [foreign exchange (FX)] risk management solution that can help them minimize risk, reduce costs and gain a competitive advantage when operating across borders, âthe statement said.
The tool can offset risks by recording and reconciling transactions “in real time … with minimal human intervention,” the statement said.
Paul Jennings, Head of Currency Advisory at SVB, said in the statement: âSVB’s innovation clients have been operating globally since their inception and are always looking for increased efficiency in managing their currency risk. change and optimization of execution through automation â.
Kantox co-founder and CEO Philippe Gelis said in the statement that the twinning “will create greater efficiency for treasurers and add value to SVB’s current foreign exchange services.”
Kantox’s customers come primarily from the food, travel, chemicals, e-commerce, manufacturing, oil and gas industries, the statement said.
The new deal between SVB and Kantox comes at a time when many business operators, 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: Frustrated. No one really expected the electronic journey of money to take or should take longer than the physical. “