Standard Chartered and Ant International have announced a collaboration to introduce an artificial intelligence (AI)-powered treasury and foreign exchange (FX) management solution.
This solution integrates Ant International’s Falcon Time-Series Transformer (TST) Model with Standard Chartered’s Aggregated Liquidity Engine (SCALE) to enhance financial operations for Ant International and its clients.
This partnership aims to reduce foreign exchange (FX) costs and improve risk management by leveraging real-time, 24/7 AI-powered FX forecasting.
Both institutions are part of the Monetary Authority of Singapore’s PathFin.ai programme.
Standard Chartered SC PrismFX sales global head Madhu Menon said: “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.
“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 their clients globally. We are looking forward to further expand our collaboration with Ant International and continue to shape the future of Treasury Management.”
The integrated solution is part of Standard Chartered’s FX Automation Programme, which supports multi-currency booking and international vendor settlements. It assists businesses in managing costs related to FX volatility during cross-border transactions.
The integration of Falcon TST and SCALE enables Standard Chartered to forecast Ant International’s FX exposures with over 90% accuracy.
Ant International’s Falcon TST Model applies advanced time series forecasting algorithms to predict future data points by analysing large historical datasets. This AI technology enables businesses to boost the efficiency and accuracy of cashflow and FX exposure forecasts, allowing them to reduce hedging and overall FX costs.
Currently, Falcon forecasts cashflow and FX exposure for Ant International on an hourly, daily, and weekly basis with high accuracy. It processes over 60% of transactions involving FX conversion for Ant International, reducing both FX costs by up to 60% and liquidity management costs by up to 50%.
SCALE, Standard Chartered’s flexible FX solution, provides corporate and financial institution clients with access to guaranteed currency rates around the clock. Utilising Standard Chartered’s global network, SCALE ensures access to FX liquidity and streamlines cross-border settlements.
Ant International platform tech general manager Kelvin Li said: “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.
“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.”
