BNP Paribas and NatWest Adopts CobaltFX's Dynamic Credit to Manage Credit Exposures for FX Trades

United Fintech, a leading technology provider for banks and financial institutions, announced that banking giants, BNP Paribas and NatWest have adopted CobaltFX's Dynamic Credit, a solution designed to optimize the allocation of credit for FX, to simplify and streamline the allocation of credit for FX transactions between banks and improve access to liquidity.

BNP Paribas and NatWest are both long-term partners of CobaltFX. Through this further collaboration, the two banks will leverage Dynamic Credit to manage credit exposures for their respective financial institutions, addressing overly manual processes as well as market access and control.

CobaltFX, formerly known as Cobalt, was a provider of critical risk and data services to the FX and digital asset markets. Last December, Cobalt was acquired by United Fintech​ and continued to operate as a standalone company under United Fintech.

Andrew Coyne, Founder of CobaltFX, said: "The problem CobaltFX is solving is essentially simplifying and streamlining many of the manual processes tied to allocation of credit which creates challenges for financial institutions. I.e. leveraging tech to enhance market stability. Thus, correcting the supply of credit and at the same time deepening the availability of liquidity, CobaltFX's Dynamic Credit technology ensures that for less credit deployed, there is more liquidity, administrative simplification and, essentially, superior market access control – the latter being a key factor for financial institutions around the world."

Joe Nash, BNP Paribas's Digital COO for FX, Rates and Commodities, said: "Industry-wide, we see that banks are adopting innovative techniques to manage credit exposures for FX trades and maintain market stability through digitalisation. CobaltFX's solution offers a much needed improvement to the manual process of updating credit limits with interbank trading venues. By providing a standardised and digitised approach, and aggregating IT infrastructure across multiple venues, 'Dynamic Credit' gives banks unprecedented control to navigate fast-moving FX markets and proactively manage credit exposure. This is a very important step in delivering a solution for credit providers, taking full advantage of new technical advancements."

Christian Frahm, Founder and CEO of United Fintech, said: "What we see is that leading financial institutions are seeking to decrease the number of third-party vendors which used to mean bigger contracts with so-called legacy providers, yet this is where United Fintech differentiates with a fresh approach to cater to the trend: We offer a selection of best of breed technology products under one umbrella to financial institutions wanting to challenge legacy providers and solutions, thus giving both sides the benefits of becoming part of something bigger. And our prediction is that we will see many more banks and fintechs follow suit and join each other's journeys on our digital platform."