Finzly Partners with Derivative Logic to Provide Interest Rate Hedging Capabilities to Community Financial Institutions

  • Banking
  • 31.08.2020 05:33 pm

Finzly, a fintech provider of modern banking applications for payments, foreign exchange, trade finance and digital banking, announced that it has partnered with Derivative Logic, an independent hedge advisory firm that provides proven hedge structuring and execution capabilities.  

Recognizing the importance of offering specialty banking services to commercial banking customers, this partnership positions community and regional financial institutions to gain a competitive advantage in the marketplace by providing interest rate hedging capabilities to their commercial borrowers. In doing so, the institution effectively grows its fee income mix, reducing funding costs while growing net interest margins.  

“Interest rate hedging services provide a true strategic differentiator for banks and credit unions as they compete for commercial customers,” said Jim Griffin, Managing Director, Derivative Logic. “Through our partnership with Finzly, we help small-to-mid-sized financial institutions overcome the complexity of offering these capabilities as we advise and assist our bank customers with pricing, swap documentation, compensation plans, negotiations with dealers, hedge accounting as well as assist with borrower-facing processes.” 

“We see our mission as helping community banks and credit unions better compete in the marketplace by offering services and capabilities on par with – and even exceeding – those of much larger institutions,” said Booshan Rengachari, founder and CEO, Finzly. “By partnering with an industry leader like Derivative Logic, our financial institution customers, and their own commercial borrowers, benefit from access to world-class hedge advisory services that are proven to positively impact their balance sheets.” 

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