Ant International Partners with Barclays for AI-Driven Global Treasury Management

In 2023, Singapore-based fintech solutions provider Ant International announced a strategic partnership with British banking giant Barclays to enhance global treasury management efficiency and resilience. The collaboration centers around Ant International's proprietary Time-Series Transformer (TST) AI foreign exchange (FX) model, designed to predict cash flows and currency exchange rates with over 90% accuracy. This advanced tool aims to reduce the costs and risks associated with currency fluctuations for multinational enterprises. Technical Breakthroughs and Initial Outcomes The TST model leverages a transformer architecture with nearly 20 billion parameters, integrating cutting-edge time series prediction algorithms. Ant International has continuously optimized the model using a pre-training and supervised fine-tuning (SFT) framework, enabling it to identify and forecast financial market patterns accurately. The model can predict hourly, daily, and weekly cash flows and FX risks, significantly reducing unnecessary hedging costs and risk premiums. During the initial phase, Ant International successfully completed the first batch of internal group forex transactions with Barclays. These transactions were executed through Barclays' settlement system, demonstrating the practical effectiveness of the TST model. The model was integrated into Barclays' BARX NetFX platform, primarily serving clients in the e-commerce and payment sectors. This integration has enhanced BARX NetFX's ability to predict FX exposure, allowing Barclays to offer more precise hedging services and lower hedging costs, thereby improving the platform's overall efficiency. Actual Application Case Recent test transactions conducted by Ant International have shown significant cost savings for its clients. By utilizing the model's cost advantages, Ant International offers more competitive forex quotes, ensuring price stability in major trading currencies like the euro (EUR) and the US dollar (USD). Early results indicate that clients have already benefited from reduced FX transaction costs, highlighting the model's potential to mitigate the impact of global currency volatility on businesses. Prospect and Expansion As global cross-border transactions are projected to surpass $29 trillion by 2030, Ant International and Barclays recognize the growing need for innovative FX solutions. Currently, the partnership supports the most frequently used currency pairs by Ant International, but plans are underway to expand the solution's applicability to more currencies, addressing a broader range of business needs. This forward-looking strategy aims to facilitate seamless and secure international trade, driven by continuous technological advancements. Industry Evaluation Barclays Global Fintech Sales and FX Automation Head Ben Parkinson emphasized the significance of the partnership: "Ant International is a long-standing valued partner. This innovative solution further cements our strong relationship and mutual trust. Their state-of-the-art AI technology has greatly improved the accuracy of cash flow predictions and optimized the hedging process, setting new standards in FX risk management." Ant International's Platform Technology General Manager Kelvin Li stated, "Collaborating with Barclays on the TST model represents a crucial milestone in our mission to support enterprise forex optimization. This advancement illustrates how technology can enhance global liquidity management, making forex transactions more efficient and cost-effective. The improvements will translate directly into cost control benefits for enterprises, elevating their financial management capabilities and delivering value to their customers." Asia-Pacific and Middle East Corporate Banking Head at Barclays, Pushkaraj Gumaste, added, "This collaboration exemplifies our commitment to evolving and leveraging partnerships to deliver impactful solutions. It's a win-win scenario, providing clients with smooth and efficient cross-border trading services while enhancing our value in their global operations." Company Profiles Ant International is headquartered in Singapore and is a leading provider of digital payment, digitization, and financial technology solutions. The company works closely with a diverse range of partners to support merchants worldwide, offering a comprehensive suite of digital payment and financial services. Their goal is to make the next generation of trade accessible to everyone through a unified TechFin platform. Barclays is a renowned British bank with a global presence and a rich history spanning over a century. Known for its extensive business network and deep expertise in financial services, Barclays leads in the development and implementation of automated forex trading strategies. By integrating advanced technologies like the TST model, Barclays aims to enhance its market leadership and offer superior services to its corporate clients. The collaboration between Ant International and Barclays not only underscores the potential of AI in financial management but also sets a benchmark for future partnerships in the fintech industry. As global trade continues to evolve, this innovative approach is expected to play a pivotal role in providing robust and efficient financial solutions, benefiting both businesses and consumers. In conclusion, the introduction of Ant International's TST model into Barclays' systems marks a significant step in the integration of AI and traditional banking, showcasing how technological advancements can address complex financial challenges. This partnership could herald a new era of financial innovation, driving higher standards and efficiencies in global currency management.