BBVA hints at FX API launch later this year
The FX API, which is set to enable ERPs to plug into BBVA’s core banking platform, will allow clients who make regular currency conversion payments to directly control when their transaction takes place and to automate the process.
BBVA keeps its push towards making Forex services more transparent, simpler and easier. The bank has indicated that an FX API is in store.
In a recent announcement the bank mentioned “the introduction later this year of an FX API”. This new API will allow for Enterprise Resource Planning (ERP) systems to plug into BBVA’s core banking platform and will enable clients who make regular currency conversion payments to directly control when their transaction takes place and to automate the process.
The bank has already made strides towards the automation of the process. On BBVA´s Netcash platform, the bank has also automated the execution process allowing for dynamic hedging to take place. For clients, it means they can take a collective view of their FX needs by pooling data from their Enterprise Resource Planning (ERP) systems, and then automating hedging with defined rules on pricing, for example, to ensure they get the best value.
BBVA says that, overall, transactional FX has experienced consistent double-digit growth for the last five years as a result of BBVA’s digital platform deployment strategy.
Across BBVA, the shift of clients to digital is becoming more apparent. BBVA sold more than 10 million units through digital channels in the first six months of 2018, marking a nearly twofold increase from the equivalent period in 2017. With this latest increase, sales via digital channels accounted for 38.6% of total sales in the six months through June, compared to a share of 22.4% a year earlier and 14.6% two years ago.
BBVA ended June with 25.1 million customers using digital channels, 20.7 million of whom use smartphones to interact with the bank. The bank’s target is to have digital customers represent 50% of the total by the end of the year. BBVA expects that by 2019 it will see mobile customers account for 50% of the total.