Use cases
Corporates
CORPORATES
Typically, small and medium-sized enterprises (SMEs), and in some cases large companies, do not have enough capabilities to hedge FX risks with one of the main reasons being that there are no dedicated people. This is why FX management is usually chaotic, without a clear system and more like speculation rather than proper FX hedging with a risk management approach.
The “FX is none of my business” narrative is not correct and can be detrimental to business as FX is as much a business as loan interest rates, team training/seminars and other activities, impacting the bottom line.
Corphedge offers easy-to-use SaaS for proper FX risk management. Corporates do not need to have specific knowledge in the field as everything is simplified and understandable. In addition to this, Corphedge offers live sessions and also helps clients to set up the platform.
Companies can create their own FX hedging policy, set up budget rates, receive notifications, record and track hedging portfolio, get reports and valuations easily, also see sensitivity. Before hedging FX risks, companies can see what risks they face if they do not hedge which is similar to outsourcing the FX treasury management.
Clients’ benefits: save on transactions with insights into interbank market pricing, and they understand and manage FX risk at a level they never thought possible.
RULES OF THUMB FOR HEDGING STRATEGY
It can't get worse
Prediction
The last three years don’t predict the next three.
No signs
Speculation
Banks/Brokers/Advisors
In today's competitive markets, fintech companies usually compete with each other on prices and credit facilities mainly, but times are changing and if you want to win over customers, you need to offer more tools and tool information. Corphedge is the additional ammo to deal with risks.
Banks/brokers/advisers can strengthen relationships with their clients, can monitor client portfolio performance much better and communicate with the client in a timely manner (once the market reaches levels where additional strategy-based hedging is required).
People feel this care and value fintech partners, establish long-term business relationships. Dealers can expect more customers, but at the same time hedging is done systematically and does not overuse credit facilities providing more flexibility.
Brokers/banks/advisers like to get the Corphedge platform for their teammates - this helps senior staff and also helps integrate new team members who advice clients on currency risk management issues. Clients can get bank/broker reports on the situation, valuation, market sensitivity and see the risks.
Dealers/sales guys can use the platform as administrators and their clients as users who can add cash flows to the table. This way, a client always has the motivation to enter cash flow data or budget rates, and dealers can work on strategies, propose strategies and make trades. Everything is done with much higher efficiency, you call the client only when it is needed, create more value than pricing and credit. This is the 1-1 approach and can create the strongest relationships for a very long time.