Citi and Ant International Pilot AI-Powered FX Hedging Tool to Cut Costs for Global Clients
Citigroup and Singapore-based fintech firm Ant International have announced the launch of a pilot program using artificial intelligence (AI) to help businesses manage foreign exchange (FX) risk more efficiently. The initiative is designed to help corporate clients, especially in industries like e-commerce and aviation, cut FX hedging costs by leveraging advanced AI forecasting models.
How the Citi–Ant International FX Tool Works
The program combines:
- Citi’s Fixed FX Rates solution — widely used across multiple sectors to lock in currency rates.
- Ant International’s Falcon Time-Series Transformer model — an AI-powered forecasting tool that helps businesses optimise FX hedging strategies.
The pilot program has already been applied in live transactions with a major Asian airline, reportedly achieving 30% cost savings on fixed FX hedging related to online ticket sales.
Key Benefits for Businesses
According to Kelvin Li, General Manager of Platform Tech at Ant International:
“The 30% hedging cost savings Ant International has achieved for the pilot airline customer shows the cost efficiency that can be achieved with AI-enabled FX hedging.”
Li added that the partnership aims to expand the solution across more industries globally.
About Ant International
Ant International, an affiliate of China’s fintech giant Ant Group, founded by Jack Ma, provides services including:
- Global digital payments
- Financial technology solutions
- Business digitisation services
The firm operates across Asia, Europe, the Middle East, and Latin America.
Citi’s Broader AI Initiatives
The FX hedging pilot comes six months after Citigroup began rolling out new AI tools for internal use, extending access to 140,000 employees in eight countries.
Other major banks using AI tools include:
- Morgan Stanley — AI chatbot for financial advisor support.
- Bank of America — Virtual assistant Erica for retail client transactions.
Why AI-Powered FX Risk Management Matters
Businesses dealing with cross-border transactions face:
- Unpredictable FX rate fluctuations
- High hedging costs
- Manual inefficiencies in risk management
AI-driven FX tools like Citi and Ant International’s solution offer:
- Real-time FX forecasting
- Automated optimisation of hedging strategies
- Cost reduction and improved financial predictability
