Spot Systems, Inc., a foreign exchange and international banking solutions provider, and Magnet Communications, Inc., a Web-based cash management, business banking, ande-commerce solutions provider, have teamed up to bring Internet-based foreign exchange capability to business desktops.
The new partnership calls for Spot Systems to use Magnet as a provider linking front-end Web origination and FX trading platforms. Magnet’s e-commerce platform and iBank-FX front-end intelligence will be integrated with SpotServer foreign exchange middleware to offer bank clients a complete Web-based offering.
Spot will market the total package to banks under eFX Internet Trading Systems. Magnet will market SpotServer to banks as a preferred back-end FX solution to its Magnet iBank Suite FX module.
What It Means to the Customer
The integration of the systems involved is designed to provide bank customers with the ability to request FX rates on a real-time basis and execute spot, forward and window contracts based on rate tiers maintained by the bank.
Customers will also be able to maintain their own payment instructions for wire transfers and drafts and have control over individual user profiles, permissions and limits.
Magnet’s system provides a secure encrypted Web channel. Spot’s products provide the rate quotes, limit checking and FX trader communication, a real-time system for the trading floor, as well as the back office. It provides detailed trading, position and customer-outstanding reports, as well as required profit and loss accounting.
This latest advance in banking technology aims not only to extend the reach of international markets through the Internet, but to make it less cumbersome for all involved.
Uniting the Global Community
“We are committed to helping banks extend their enterprises on both international and domestic fronts,” said Scott Pranger, Magnet’s Chief Marketing Officer. “Extending foreign exchange to the Web is a strategic move for banks, positioning them as leaders in global business services. Together with Spot Systems we bring a broad array of foreign exchange trade, monitoring and management tools to banks and businesses of all sizes.”
The priority in developing the new alliance was ease of integration. The SpotServer shares a database with Spot Systems’ Foreign Exchange Trading System and the rest of Spot’s international banking products, but was designed to easily integrate with existing trading platforms.
Spot’s intention is to effectively cut out the software “middleman” in international banking, thereby facilitating faster and smoother transactions.
“Bringing the capability to the bank client desktop the Web channel removes software distribution barriers and enables bank foreign exchange trading areas to reach more customers without detracting from their ability to provide superior service levels to their best clients,” said Fred Goldman, CEO of Spot Systems. “That makes strategic and economic sense.”