BNP Paribas acquires fintech Kantox

BNP Paribas announced on Tuesday October 11 that it had signed an agreement to acquire fintech Kantox, which specializes in automated foreign exchange risk management. This acquisition, which will be finalized in the coming months, is part of BNP Paribas' strategy of developing innovation.

Kantox, specialist in currency risk automation

A partner since 2019 of fintech Kantox, whose acquisition it has just made official, BNP Paribas is continuing its strategy of acquiring fintechs with the aim of accelerating its development in terms of technological innovations.

After acquiring innovative online payments specialist Floa, BNP Paribas turns to the leader in automated foreign exchange risk management. Founded in 2011 by John Carbaja, Philippe Gellis and Antonio Rami, fintech Kantox has developed automated currency management technology.

It enables corporate customers to exchange currencies on its platform at very low rates, without having to go through the banks. The commission charged by the fintech is up to 10 times lower than that charged by banks.

Kantox provides companies with real-time information on their exposure to foreign exchange risk, and automatically updates their sales prices in line with changes in the foreign exchange market.

The fintech helps them develop their hedging strategy, enables them to automate their transactions and simplifies foreign currency transfers by centralizing payments.

A solution for unstable foreign exchange markets

Since 2011, Kantox, which in addition to BNP Paribas counts Eurazeo and Partech among its shareholders, has raised almost $44 million. For the leading fintech in automated foreign exchange risk management, the acquisition by BNP Paribas represents two opportunities.

On the one hand, the liquidity of BNP Paribas' corporate and investment bank (CIB) will facilitate its access to currencies; on the other, it will also be able to access the bank's customer portfolio, since the latter intends to offer them the technology developed by Kantox.

" Our leading positions with European companies of all sizes will enable Kantox to accelerate its development, while enhancing our customers' experience ," explains Thierry Laborde, Deputy CEO and Head of BNP Paribas' CPBS division, in a press release.



The current context lends itself particularly well to the deployment of Kantox's solution for companies. The war in Ukraine, rising inflation, rising energy prices and central bank interest rates have all caused exchange rates to fluctuate sharply over the last few months, increasing the risks faced by companies.

" Corporate treasurers today operate in a hectic market environment, and cutting-edge technologies can help them mitigate some of the challenges they face, particularly by automating manual tasks, enabling them to stay focused on their core business," details Olivier Osty, Head of BNP Paribas CIB Global Markets.

BNP Paribas' acquisition of Kantox will also enable the company to develop new offerings, particularly in the commodities sector, and to reach companies with annual sales in excess of €10 billion.