At SIBOS, the annual meeting of banks, we are seeing many anouncements about new services for the smaller banks. One of today’s is Bank of America Merrill Lynch announcement of enhancements to AutoFX, its automated currency conversion product for financial institutions. The new capability uses data analytics to make settlements faster, less expensive and more certain for the sending bank. AutoFX now also allows users to customize criteria for automated conversion.
Cross-border payments for smaller banks
AutoFX enables a bank sending a cross-border payment on behalf of its client to have BofA Merrill automatically convert the payment into the recipient’s local currency. The integration of new data analytics better enables AutoFX to quickly qualify eligible transactions that are destined for beneficiaries with local currency accounts.
Executing wire payments to foreign beneficiaries is standard in today’s global economy. However, many smaller banks lack the infrastructure, the accounts and the mechanisms to handle the currency conversions themselves. With AutoFX, the sending bank no longer needs to rely on the recipient bank to convert the currency. Instead, the conversion happens prior to delivery.
BofA Merrill’s AutoFX claim an expansive global reach, with up to 89 countries and 41 corresponding currencies. Once set up, AutoFX runs automatically, using machine learning to better evaluate each eligible transaction and convert those destined for beneficiaries with local currency accounts.
“As new technologies evolve and impact global commerce, cross-border payments must keep pace,” said Stephanie Wolf, head of Financial Services Companies and Governments for GTS. “In that context, we’ll continue to roll out innovations that enhance the value chain to our financial institution clients, and ultimately their own clients.”
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