Opportunities and Challenges for Tier II Banks in FX eCommerce
smartTrade Technologies and Aite Group recently hosted a webinar on the topic of “Opportunities and Challenges for Tier II Banks in FX eCommerce”. Apart from the interesting data (via Aite) on how trade volume has grown over the past decade (MarketFactory offers from BIS data and graphs on its blog), coupled with the trends across FX venues, the webinar (Aite again) provides a number of opportunities that tier II banks could take advantage off:
- Aggregation services
- Focus on regional currency pairs
- Retail FX
- Value-added services e.g. liquidity analysis, transaction analysis
FX Aggregation comes though strongly (Aite) in the webinar slide deck. On the topic of build vs buy, Aite data points to a hybrid approach for delivering FX eCommerce as being the most common – unsurprisingly. smartTrade offers a view on internal crossing and Smart Order Routing (SOR), order management, distribution, analytics, hedging/execution, and aggregation – all features that any FX eCommerce solution should consider.