Single Bank FX platforms - moving to enrich the customer experience >>>
To this end, Vinding says: “Firstly, we offer our clients a huge package of analytical tools, called Nordea Analytics, which enable our customers to get a better overview of their risk exposures and helps them to make what-if simulations on a product or portfolio level as well as delivering deep market insight via historical and real-time analysis tools. Nordea Analytics is especially popular among our more sophisticated customers. Secondly, we offer our customers access to our intellectual property such as research publications and general financial market information such as news feeds, live prices and economic calendars.”
In order to offer tailored solutions, Nordea has developed a proprietary front-end as the only way to achieve high flexibility and be a differentiator. Ten based on the customer type, Nordea can then select the most relevant components. Says Vinding: “Modern web technology and new applications come with a lot of new standard build-in features such as hovering, docking and enriched notifications and as these seem to apply fairly broadly these technical improvements can be used to optimise desktop space and at the same time these features improve navigation and usability so that our customers can easily navigate around. All this must be supplemented with a powerful and intelligent free-text search engine as Google which proved many years ago that this is the preferred way of finding information and/or a specific feature.”
While Vinding believes that the growing use of further services on mobile or tablet applications as a convenient supplement to banks’ e-offerings should be carefully selected, he also believes that they allow banks to present their intellectual property in new and smarter ways that bring the customer closer to the bank. Although not all services are suited to mobile devices, Vinding says that new services, such as podcasts and webcasts are growing in use as an extension of Nordea’s overall e-FX offering.
Smarter FX e-commerce engines
Te development of faster and smarter FX e-commerce engines are further empowering clients in their search for best execution and more flexible risk and FX order management, to the extent it has become an arms race these days as banks seek liquidity and build up dark pools in order to be competitive and profitable. He says: “Tis obviously requires more flow which in turn leads to continued spread compression. For the client this is indeed a positive thing as spreads are narrow and there are plenty of makers to choose from. In today’s FX markets clients are having a good time.”
“When that said since the FX market behaviour and dynamics change as we speak clients may have to enrich their execution tools and capabilities further in order to cope with much more frequent price and spread changes as a result of the algo engines.”
Vinding also believes that the role e-FX plays in facilitating customer relationship models, based around helping clients extract more value from advisory services, is increasing but it is a slow moving trend. He adds: “Te most obvious reason for this is that the income effect of these investments compared to investments in e-trading is very blurred, but also that banks’ willingness and short term incentive to follow up on customers of these services is limited. Over time I expect that customers will expect that they can be served electronically in several ways and thus request more than ‘just’ execution services.”
As e-FX platforms continue to develop he believes that there will be a greater tendency towards client specific solutions, however, he suspects many banks will continue to provide product specific services as they will be reluctant to change what they have too much already.
Thomas Vinding
“Over time I expect that customers will expect that they can be served electronically in several ways and thus request more than ‘just’ execution services.”
Increasing levels of customisation
Steve Godfrey, executive vice president and head of the Foreign Exchange e-Commerce division at Wells Fargo, says that clients expect the bank to continue
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