In response to regulatory changes, Bank of America and Sylvamo partnered to streamline the FX transaction process, resulting in a new risk-based tool that uses statistical modelling to automatically determine which FX transactions require additional documentation. The tool relieves the burden on Sylvamo’s treasury team, allowing them to forgo additional documentation on more than 90% of their trades.

As part of early discussions with Bank of America, Sylvamo provided real pain points about its treasury routines, particularly document submission, that could be addressed with a revamped workflow. Based on those discussions, Bank of America developed a spread sheet prototype, and Sylvamo was the first company to engage with it, actively collaborating with the bank to refine the file and validate the effectiveness. Recurrent meetings with them allowed continuous feedback on the process, enabling Bank of America to quickly adjust the file according to their needs.

When the tool was ready for full market launch, Sylvamo was pivotal in communicating its gains to other companies. During one particular client event, Sylvamo led a successful presentation of its new FX transaction process that led to over ten more businesses expressing interest in implementing the same solution. To date, the tool has been adopted by over 70 companies in Brazil, resulting in gained efficiencies across Brazil’s corporate ecosystem.

By leveraging technology, regulatory flexibility, and a strong partnership with its bank, Sylvamo has transformed its FX processing approach, making it faster, more scalable, safer and easier to use. It became a leader in FX transactions in Brazil and a best in class model that other companies can emulate to gain the same level of efficiency.