Citi and Ant International Launch AI-Powered FX Forecasting Tool to Cut Hedging Costs for Airlines

Citi and Ant International are collaborating to pilot an AI-enhanced FX risk management solution, specifically designed to benefit the airline industry. Announced in Singapore, the initiative leverages Ant International’s Falcon Time-Series Transformer (TST) Model, a sophisticated AI tool with nearly 2 billion parameters, to deliver more accurate and efficient cash flow and foreign exchange (FX) exposure forecasts. This partnership combines Ant International's expertise in airline payments and Citi's strong FX solutions to help businesses better manage currency risks and reduce costs. The Falcon TST Model uses advanced time-series forecasting algorithms to predict future data points by analyzing complex patterns in large historical data sets. When paired with Citi’s Fixed FX Rates solution, which locks in and agrees upon FX rates for a defined period, the integrated solution provides enhanced predictability in budgeting, pricing, and profitability. Citi’s Fixed FX Rates solution supports over 70 currencies and is recognized across the e-Commerce, Travel, and Airlines sectors. Initial tests of the combined solution have shown promising results. Citi has successfully executed FX transactions for a major Asian airline, achieving significant reductions in the carrier’s FX hedging costs. Ant International reports that the Falcon TST Model has demonstrated over 90% accuracy in its proprietary use cases and expects this to bring substantial cost efficiencies to the airline industry. Sam Hewson, Global Head of FX Sales at Citi, emphasized the bank's commitment to innovation and client support: “We are constantly evolving our products and solutions to align with our clients' priorities. This collaboration with Ant International is a strategic step in enhancing our FX risk management capabilities and delivering best-in-class technology.” Kelvin Li, General Manager of Platform Tech at Ant International, highlighted the cost-saving potential of the solution: “The 30% hedging cost savings we've achieved for the pilot airline customer underscores the effectiveness of AI in FX management. We are excited to further develop this solution with Citi to serve a broader range of businesses and industries.” The partnership is a milestone in the application of AI to financial services, particularly in the realm of FX risk management. By integrating cutting-edge AI tools, Citi and Ant International are positioning themselves to offer more reliable and cost-effective solutions to their clients, addressing a critical need in an industry facing substantial volatility and growth. Citi, known for its extensive global reach and diverse financial offerings, operates in more than 180 countries and provides a wide array of services to institutions, governments, and individuals. Meanwhile, Ant International, headquartered in Singapore, specializes in digital payments and financial technology, serving a broad spectrum of clients across Asia, Europe, the Middle East, and Latin America. Both companies are committed to driving innovation and inclusive growth through their collaborative efforts. Industry experts view this collaboration positively, noting that the combination of Ant International’s AI prowess and Citi’s established FX solutions could set a new standard for managing financial risks in volatile markets. The success of the pilot program suggests that similar AI-driven solutions may soon become mainstream, offering tangible benefits to businesses beyond the airline sector. In summary, the partnership between Citi and Ant International represents a significant advancement in the application of AI to FX risk management, potentially revolutionizing how businesses handle currency fluctuations and hedging costs.