BNP Paribas and NatWest have partnered with fintech CobaltFX to simplify and streamline the allocation of credit for foreign exchange (FX) trades between banks.
The implementation of CobaltFX’s ‘Dynamic Credit’ solution marks a step forward in enhancing market access and control while optimising credit disbursement.
CobaltFX, part of United Fintech, has been a longstanding partner of BNP Paribas and NatWest. This latest collaboration aims to manage credit exposures, addressing manual processes as well as improving market access and control.
Joe Nash, digital COO for foreign exchange, rates, and commodities at BNP Paribas, emphasised the industry-wide trend of adopting innovative techniques to manage credit exposures and maintain market stability through digitalisation.
“By providing a standardised and digitised approach, and aggregating IT infrastructure across multiple venues, ‘Dynamic Credit’ gives banks unprecedented control to navigate fast-moving FX markets and proactively manage credit exposure,” said Nash. “This is a very important step in delivering a solution for credit providers, taking full advantage of new technical advancements.”
Since its acquisition by United Fintech in late 2022 and subsequent relaunch in early 2023, CobaltFX has gained notable traction. Marc Levin, CEO of CobaltFX, describes it as a prime example of United Fintech and partner companies collaborating to drive innovation in big banks’ digital transition. This aligns with the growing trend of banks and financial institutions seeking engagements with broader technology vendors to address compliance and security concerns effectively.
While Christian Frahm, founder and CEO of United Fintech, notes that leading financial institutions are aiming to decrease the number of third-party vendors and work with broader technology vendors to challenge legacy providers.
“Our prediction is that we will see many more banks and fintechs follow suit and join each other’s journeys on our digital platform.”