Commerzbank is investing in another Fintech company. Via its early-stage investor Main Incubator, the bank is investing in the FX-Fintech 21 Strategies. This was announced by the research and development unit of Commerzbank on Monday, April 20th. Together with the venture capital company Forest Capital from the United Arab Emirates, Commerzbank is investing a seven-digit amount in the Munich-based FX-Fintech, which, according to Main Incubator, was only officially founded on April 9th this year.
That means the shares of 21 Strategies will be divided between the Main Incubator, Forest Capital and the Fintech founders Yvonne Hofstetter, Christian Brandlhuber and Scott Jon Muller. Together, the three founders hold the majority in the start-up. The parties involved did not comment on the exact distribution of the shareholdings.
Find out more about the Commerzbank’s investment in the fintech company FX-Fintech 21 Strategies and read the latest financial headlines in the world with the Born2Invest mobile app.
FX-Fintech wants to completely automate hedging
The Start-up 21 Strategies is promoting its Hedge 21 tool to provide treasurers and CFOs with a data-based and automated solution that supports the hedging decision-making process. According to 21 Strategies, the company wants to close a gap in the already largely software-supported hedging process of companies.
The background: many treasury departments have already automated large parts of their hedging process in commodity and currency management. Only the decision when and to what extent hedging transactions are concluded is often made by a human being. The basis for this decision is sometimes many years of industry experience or even an immediate or basic feeling or reaction without a logical rationale, according to the communication.
FX-Fintech creates probability forecasts
This is where FX-Fintech 21 Strategies comes in: The tool is “cognitive, but not a black box,” said founder Yvonne Hofstetter, who is also the CEO of the company. It is based on machine learning and, according to Hofstetter, combines quantitative and qualitative information such as interest rates, inflation rates, GDP growth and geopolitical developments provided by the markets with internal constraints imposed by a company’s individual hedging process.
“Based on this situation and taking into account the hedge policy of the respective company, the model makes hedging decisions,” explained 21-Strategies co-founder Christian Brandlhuber at an event organised by EY in Munich at the beginning of February. It not only specifies a hedging quota, but also whether the time for hedging is good or bad.
At that time, three companies had agreed to test the tool in currency management. “One of the previous customers of 21 Strategies is an internationally active company from the MDax,” the Main Inkubator announced at the request of DerTreasurer.
Banks use Fintech expertise in digitalization
Not only Commerzbank, which is investing in a technology-driven start-up for the 19th time with its stake in 21 Strategies, wants to support its corporate customers in automating their currency management.
Last autumn, BNP Paribas also entered into a strategic partnership with the British company Fintech Kantox, thereby adding a tool for automating FX hedging to its treasury services.
Through the partnership, the major French bank is offering its corporate customers in Europe, Africa and the Middle East a solution from the Fintech Kantox. Other banks could follow with similar investments.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Der Treasurer, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Why the demand of sustainable ETFs is increasing
The assets managed in sustainable ETFs could increase by six times to $1.2 trillion by 2030, according to Blackrock. The...
BPER Bank’s call for crowdfunding “The future at your fingertips” has selected 5 projects
The 5 projects selected by the crowdfunding platform Produzioni dal Basso will now be able to access BPER's co-funding opportunity...
The first national clinical trial of a COVID-19 vaccine is now underway in Chile
The clinical trial, led by the Catholic University, together with other universities and the Sinovac Biotech laboratory, already has funding...
New study on the economic impact of the pandemic in Burkina Faso
A recent study conducted in Burkina Faso showed that the pandemic has negative consequences on income and food security in...
Demecan launches an online cannabis shop for pharmacies
Demecan has opened an online shop for direct sales to pharmacies. Although the Berlin-based startup is the only German company...
Africa5 days ago
Rwanda will build a nuclear research center
Featured6 days ago
Supply@Me Capital ready to close the first securitization of the overall €970 million program
Cannabis6 days ago
Medterra enters into a strategic partnership with Megalabs
Crypto7 days ago
The rise in Bitcoin’s price made 95% of the investment in cryptocurrency profitable