The challenge

With the creation of Corpay came an opportunity to reassess the systems and processes that laid behind the complex web of foreign exchange (FX) transactions that Corpay handles for its corporate customers.

This was especially true in the Asia Pacific region, where Corpay’s treasury team, under David Britten, was executing hundreds of trades a day, often in exotics, and doing so using a largely manual process. The Corpay treasury desk would cover each exotic deal for the exact amount, then the back office team would need to process each individual deal.

The solution

Corpay’s team worked closely with Bank of America (BofA) to develop a system that replaced a previously complex set of solutions with two BofA products: CashPro FX for simpler execution and Instinct^® FX for hedging.

Under the new system, BofA provides liquidity for spot, forward and options trades across the region. Exotics, previously executed as individual trades, are now handled as a batch upload to CashPro FX at the end of each day.

The Instinct platform, now used to manage spot, forward and option risk, has allowed Corpay’s trading teams to access pools of liquidity more efficiently and at lower costs than before – savings that have given Corpay a competitive advantage when they are passed on to the customer in the form of more attractive pricing.

“The close relationship between our treasury team and Bank of America has also markedly improved the time taken to resolve issues, allowing us to offer better service to our customers,” explains David Britten, Managing Director, APAC.

Taken together, the switch to CashPro FX and Instinct FX has allowed Corpay to improve the speed and reduce the risk of its FX transactions – and done so at lower cost and with lower administrative overheads compared to its previous solutions.

This has allowed Corpay to improve both the pricing and service levels it can offer its customers – giving it a critical edge in the competitive world of cross-border corporate payments.

The Adam Smith Awards Asia are the industry benchmark for best practice and exceptional solutions in treasury and Corpay Cross-Border Solutions is honoured to receive this recognition.

Best practice and innovation

Corpay’s early recognition of the potential benefits of a streamlined FX process post-merger has helped it reap the benefits sooner. The Corpay treasury desk would cover each exotic deal for the exact amount, then the back office team would need to process each individual deal under the legacy arrangement. The switch to batch uploads, combined with straight through processing, has relieved the treasury and back office teams of hours of manual input tasks, freeing them up for more productive activities.

The benefits of greater automation and improved management of hedging positions were passed on to customers immediately, delivering a true competitive edge for Corpay.

There has also been a significant reduction in FX risk for Corpay and its customers using the Instinct FX platform. The speed with which the new solution was implemented was also a best practice that can be replicated elsewhere.

Key benefits

• Cost savings.

• Headcount savings.

• Process efficiencies.

• Return on investment (ROI).

• Increased automation.

• Risk mitigated.

• Errors reduced.

• Number of banking partners/bank accounts reduced.

• Manual intervention reduced.

• Exceptional implementation (budget/time).

“This solution is quite unique; a corporate treasury improvement that has delivered a direct, significant competitive advantage to the business.”

David Britten, Managing Director, APAC