Direct Foreign Exchange for Banks
In the United States, $460 billion of currency is exchanged for every daily basis and $3.2 trillion of the currency worldwide. So, based on these data, it is no wonder if the foreign exchange market becomes the largest trading market in the world. Direct Foreign Exchange (DFX) was launched in 1996 and is developed under a United Kingdom company, Direct Foreign Exchange Plc. This company announced that it was registered and listed as a part of United States. Corporation in 1998. Then, DFX also becomes a part of Independent Community Bankers of America (ICBA). Now ICBA has around 5,000 members and becomes a biggest community banks in the United States.DFX has already launched version 2 of its foreign exchange software. It is an advanced platform which provides automatic Straight through Processing (STP). It is appropriate for a broad range of foreign exchange transactions. It is also capable for exporting data and sophisticated, so that it is friendly and easy to operate for both the client bank and its customers.
In 2005, DFX officially joined the Brookings Management Group for developing its product marketing and sales management. DFX is a software platform that is currently installed and has been tested by a New-York based bank. Its development has already reached New York, Ohio, and New Jersey. DFX provides ability for both customers of major market and the banks, so that they can make on-line purchase of a full range of foreign currency products.
Direct Foreign Exchange has some advantages that can be got by the customers. It is based on the incremental fee revenue. The cost of entry is also minimal. Then, the revenue recognition is also done in the same day. So, it is quick and efficient. There is also no trading desk cost and capital commitment because the process is end-to-end transaction. If you question about the charge for ongoing foreign exchange software, this is free and there is no customization or hosting. DFX also handles of all transactions by well-established third-parties. It has a ‘white-label’ extension of on-line banking services which has strong customer appeal.
DFX sustains the clients with eight products. They are purchase bank notes or currency, buy back currency, issue international wire transfers, receive international wire transfers, purchase foreign currency drafts, buy back foreign currency drafts, purchase international traveler’s checks and buy back traveler’s check.
This foreign exchange software also gives chances for regional and smaller banks to control the significant fee-based revenue stream. DFX has three major concerns when developing its partnership program. First, it looks for sales partners who can generate leads and sales themselves with their proven ability. Second, it wants technology partners which are software and hardware vendors. They also have to be integrated and supported platform. Third, it seeks service partners which have expertise in product configuration to carry out well product providers. The partners consist of wholesale currency vendors, consulting companies, web design and development companies which has experienced in working with financial institutions. DFX gives the highest priority in controlling the security. Every bank client’s information is fully protected. DFX also provides 24-hours and 7-days technical support system. Of course with its experiences, it is no doubt if DFX is developed fast and significantly.
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