Citigroup has partnered with Singapore-based fintech firm Ant International to launch a pilot program that aims to enhance foreign exchange (FX) risk management using artificial intelligence.
Ant International is an affiliate of China’s fintech giant Ant Group, founded by billionaire Jack Ma, providing global digital payment, digitization and financial technology with operations across Asia, Europe, the Middle East and Latin America.
The pilot program was originally developed for aviation
According to Citigroup and Ant International on Friday, the initiative integrates Citi’s Fixed FX Rates solution, which is already widely used by clients in sectors like e-commerce, with Ant International’s Falcon Time-Series Transformer (TST) model, an AI-powered forecasting tool with nearly 2 billion parameters and the ability to help businesses reduce hedging FX costs.
The pilot program was originally developed to serve aviation clients, but it has shown great potential in the risk management sector. It has already been used in live transactions with major Asian airlines and the companies claim that it was able to reduce cost in the airline’s fixed FX hedging for online ticket sales.
