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Airline Slashes Hedging Costs by 30% with Citi and Ant's AI Tool
18 Jul
Summary
- Citi and Ant International launch AI-powered FX hedging pilot program
- Pilot program helps major Asian airline reduce hedging costs by 30%
- Ant's AI forecasting tool combined with Citi's FX solution
Citigroup and Singapore-based fintech firm Ant International have recently launched a pilot program using artificial intelligence to help clients better manage foreign exchange risk. The program combines Citi's Fixed FX Rates solution with Ant International's Falcon Time-Series Transformer model, an AI forecasting tool that helps businesses reduce hedging FX costs.
The pilot program, initially developed for aviation clients, has already been used in live transactions with a major Asian airline. The airline was able to achieve a 30% reduction in its hedging costs for online ticket sales, demonstrating the cost efficiency that can be gained through AI-enabled FX hedging.
Kelvin Li, the general manager of Platform Tech at Ant International, expressed excitement about expanding the solution with Citi to serve more businesses and industries. The launch of this program comes six months after Citi began rolling out new AI tools for its 140,000 employees globally, showcasing the growing adoption of AI in the banking sector.
