A new collaboration to optimize cross-border payments
Banking Circle, a leading provider of global B2B banking services, and Ant Group, a leading online payments provider, have announced a new partnership to enhance liquidity management for cross-border payments. The collaboration will leverage Banking Circle’s innovative FX and liquidity centre (FLC) structure and Ant Group’s next-generation treasury solutions to offer faster, cheaper and more transparent payment services to customers around the world.
The FLC structure, which was developed in collaboration with J.P. Morgan, connects five global treasury hubs in Singapore, Hong Kong, Luxemburg, New York and London, covering more than 40 currencies and over 100 currency pairs across 60 entities. The FLC structure enables centralized FX services, liquidity management and intra-group settlements for all of Alibaba’s affiliates globally, including Ant Group.
Ant Group, which operates the Alipay Global Markets Singapore (AGM) entity, will use the FLC structure to optimize its fund movements, extend its operation window, increase its currency coverage and reduce its FX and overdraft costs. Ant Group will also benefit from Banking Circle’s market-leading compliance and security standards, as well as its extensive network of local and global banking partners.
A win-win situation for both parties and their customers
The partnership between Banking Circle and Ant Group is a win-win situation for both parties and their customers, as it will create a more efficient and seamless payment ecosystem for cross-border transactions. Banking Circle will be able to leverage Ant Group’s vast customer base and global reach, as well as its cutting-edge technology and innovation capabilities. Ant Group will be able to access Banking Circle’s flexible and scalable banking solutions, as well as its competitive pricing and execution.
The partnership will also benefit the customers of both parties, as they will be able to enjoy faster payment cycles, lower transaction fees and more choice of settlement currencies. The partnership will also enhance the customer experience and satisfaction, as well as the trust and loyalty between the parties and their customers.
A milestone in the global payment industry
The partnership between Banking Circle and Ant Group is a milestone in the global payment industry, as it demonstrates the potential of collaboration and innovation to transform the way cross-border payments are done. The partnership also reflects the vision and mission of both parties to bring inclusive, transparent and cost-effective financial services to their customers, especially individuals and small-and-micro enterprises, around the world.
The partnership is expected to go live in the second quarter of 2023, and will be rolled out gradually to cover more currencies and regions. The partnership will also explore new opportunities and initiatives to further enhance the payment services and solutions for their customers.
