Standard Chartered Bank in Singapore is to launch an AI-powered treasury and foreign exchange (FX) management system.
The bank has developed the technology in partnership with Ant International, a global digital payment, digitisation and financial technology provider.
The collaboration will integrate Ant International’s Falcon Time-Series Transformer (TST) Model with Standard Chartered’s Aggregated Liquidity Engine (SCALE).
The resulting technology aims to help businesses mitigate costs and FX volatility when transacting cross borders.
The bank said the technology enables seamless data exchange that leads to AI-Powered FX forecasting in real time around the clock.
The technology is a transformer architecture-based big data model with close to two billion parameters.
Equipped with the latest time series forecasting algorithms, Standard Chartered said the model predicts future data points by learning complex patterns from large historical data sets using AI technology.
The model can then help businesses improve the efficiency and accuracy of their cashflow and FX exposure forecasts, allowing them to reduce hedging and overall FX costs.
Standard Chartered added that it can now forecast Ant International’s FX exposures with more than 90 per cent accuracy, which in turn allows the bank to manage its FX risk more effectively and the FX hedging costs of customers.
The technology is currently used to process more than 60 per cent of Ant International’s transactions that involve FX conversion, which the bank said can reduce both the company and its customers’ FX costs by up to 60 per cent, and liquidity management costs by up to 50 per cent.
“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”, said 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 their clients globally.”
