The Digitalization and Use of Computer-Generated Algorithms in Banking Highlights Importance of FX Rate Integrity®

Although it has been disputed that banks should collaborate with fintechs in order to keep up with digitalization, recent news suggests otherwise. The Banker writes that as banks are beginning to keep up with the modernization and digitalization of the banking industry, many are ending their partnerships with existing fintechs. As banks had a hard time keeping up, they ​needed ​ fintech partnerships to compete, but as more banks embrace technology and the use of APIs, fintechs are less necessary.

Many banks now have “cloud deals” with Google, Amazon, or Microsoft and can perform wider and more advanced functions on their own, writes The Banker. Typically, banks use algorithms to determine a client’s fx markup; it is important for clients to understand how their markups are determined in order to effectively monitor their FX costs. FX Rate Integrity® uses cloud technology to help clients identify how they are being charged to complete FX transactions by their banks.

Read the full story on ​The Banker.

-Paola Gasca, Analyst

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