Standard Chartered and Ant International have entered into a collaboration to roll out an AI-powered Treasury and FX management solution that integrates Ant International’s Falcon Time-Series Transformer (TST) Model with Standard Chartered’s Aggregated Liquidity Engine (SCALE).
Both Standard Chartered and Ant International are Pathfinder institutions in the Monetary Authority of Singapore’s (MAS) PathFin.ai programme. The initiative demonstrates how artificial intelligence is being applied to strengthen services within Singapore’s financial sector.
Following up on the current collaboration in blockchain, this collaboration aims to minimize FX costs and improve risk management for Ant International and its customers. The integration allows data to pass easily, facilitating real-time AI-led FX forecasting on a 24/7 basis.
Developed with Ant International, the joint solution is part of Standard Chartered’s FX Automation Programme. It accommodates cross-border vendor settlements and multi-currency bookings, enabling businesses to mitigate FX volatility and minimise transaction costs.
By integrating Falcon TST with SCALE, Standard Chartered is able to predict Ant International’s FX exposures with over 90 percent accuracy. This makes it possible to manage FX risk more effectively and reduce hedging costs in real time.
Kelvin Li, General Manager of Platform Tech at Ant International, commented: “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 banking capabilities with Ant International’s solutions, we can enhance how businesses manage global liquidity and FX strategy, enabling more efficient cross-border transactions.”
The Falcon TST Model is a data transformer architecture-based big data model with almost two billion parameters. It uses advanced time series forecasting algorithms to compute complex patterns in historical datasets to predict future data points and improves the accuracy of cash flow and FX exposure forecasts as well as reducing hedging and overall costs. Falcon is currently predicting on an hourly, daily, and weekly level with more than 90 percent accuracy. It processes more than 60 percent of Ant International’s FX transactions, reducing FX costs by up to 60 percent and liquidity management costs by almost 50 percent.
SCALE compensates for this with a more flexible FX solution for corporates and financial institutions and supports multi-currency payments and pricing with guaranteed FX rates for corporates.
Using Standard Chartered’s network, SCALE offers access to FX liquidity, reduces FX risk and facilitates cross-border settlements.
As global trade and cross-border transactions grow, Standard Chartered and Ant International will continue developing solutions to improve efficiency, resilience, and security for international businesses.