29th August 2001, London: Banco del Bajio, a regional bank based in Leon, Guanajuato, Mexico, has become the first in Mexico to offer online foreign exchange trading to its corporate client base. The bank’s new service, called BBFX Cambios, forms part of its web-based range of services, which are used by between 500 and 600 clients. Online FX dealing, which recently went live, is powered by Cognotec’s groundbreaking AutoDeal LITE ASP-based foreign exchange and money market dealing service. The ASP structure enabled BBFX Cambios to go live less than three months after contracts were signed.
Banco del Bajio is using BBFX Cambios to differentiate its services in the increasingly competitive Mexican market. In Mexico, the small and medium size FX market is dominated by dealing houses who have a lighter regulatory burden than banks. As a result, the FX departments within banks have to work harder to attract and retain clients.
AutoDeal LITE’s fast implementation and transaction-based fee structure has enabled Banco del Bajio to gain an edge over its competitors at low cost and little financial risk. It has also allowed the bank to automate its FX dealing services, which were previously conducted by telephone. The bank’s growing number of branches will also input their trading requirements electronically, thus freeing up central dealing room staff to concentrate on promoting the enhanced corporate services to new clients.
"We believe that the way to stay ahead of the competition is to differentiate ourselves in the marketplace by enhancing the service levels we are able to offer clients. Our web-based initiatives are central to this strategy but we found little interest among solutions providers in helping us to achieve this goal – until we contacted Cognotec. Cognotec’s support and the speed to market we achieved with AutoDeal LITE was excellent. We can now offer a more efficient service to clients without significantly increasing our cost base," said Jorge Iglesias, Director of FX for Banco del Bajio.
An additional bonus is that AutoDeal LITE will enable Banco del Bajio to connect seamlessly to newly established FX portals such as Atriax, Currenex and FXall in the future, if it so requires. The bank is also exploring the possibility of using AutoDeal LITE’s unique Liquidity Linq feature to increase the range of currencies it can offer clients. Liquidity Linq enables banks to pass clients positions up to a nominated liquidity provider who assumes the market risk. Client details and credit exposure remains with the original bank.
"Banco del Bajio’s experience demonstrates how leading edge technologies can enable small banks to improve their services while at the same time improving levels of efficiency – and all for little up-front outlay. Banco del Bajio is now the first in Mexico to offer online FX trading – a milestone not only for the bank itself but also for the Mexican FX market. The online FX revolution continues to march across the globe – and AutoDeal LITE is the primary engine of this transformation," commented John Beckert, President, Cognotec Americas.