FX Services for Financial Institutions
As Financial Institutions (FI) expand their services to meet the growing needs of their customers, providing a comprehensive Foreign Exchange (“FX”) solution may become a competitive advantage or requirement in today’s market. While many community and regional FIs seek to offer better FX capabilities to their customers, they often lack the infrastructure, staff, and experience to implement it. Too often the defined processes are performed ad hoc where the bank and their customers are overpaying due to either a lack of pricing transparency from third-party providers or they lack the in-house capabilities needed to best support their FXIP needs.
How Chatham Supports Financial Institutions
Leveraging our proven expertise and established infrastructure in offering interest rate hedging solutions, Chatham has built an advisory practice to help financial institutions develop and optimize FX and international payment services. With a partnership mentality, our goal is to enable our clients and ultimately their customers to compete more effectively in our global economy. Our services for FX-IP include:
- Diagnostic Assessment – Our team of experts will conduct a deep dive analysis of your current program, including costs associated with FX & IP, a comparison to industry targets, process mapping to identify process gaps, risks and deficiencies preventing an optimal program. The assessment will also outline revenue, volume and penetration goals that are aligned to your business. This assessment can address both the international payment process as well as how you can offer better FX solutions to your customers.
- Program Roadmap – Building off the assessment, and leveraging best practices, benchmarks and experience-based insights, Chatham will partner with you to develop an FX-IP roadmap focused on how to foster and sequence the implementation of capabilities and processes needed to either improve an existing program or build a new one. As part of the roadmap we will work with you to define the metrics/KPIs for your institution. This allows stakeholders to track progress along the roadmap and measure performance signaling when the next phase of plan should begin.
- FX Awareness Training – There is a tendency at US financial institutions for the bulk of international payments to be made in USD. Fighting this USD compulsion requires strong collaboration with internal partners. To help build this collaboration, our team can conduct FX Awareness Training to help the financial institution understand how to identify situations where making payments in foreign currency may be a better solution for its customer. Training can be provided to any of the FX group’s internal partners, but is especially aimed at the bank’s Cash Management sales staff.
- FX Consulting Services –Our team will partner with you to solve specific FX challenges, from issues with international payments to finding ways to optimize FX processes and developing FX strategies to meet customer needs.
Benefits of Chatham’s FX Services for FIs
As an independent advisor with a global presence, Chatham has a long history serving organizations with FX risk management needs. We have deep in-house expertise and have built proven FX models that support thousands of transactions annually. Our integrated approach leverages the economic, regulatory compliance, and system capabilities that are critical to managing a cost effective FX and international payments program.
As a long-time partner to financial institutions, we understand how FIs operate and are committed to helping our clients thrive and grow.