The launch of Instantia, a new FX risk management firm headquartered in Australia, marks a significant evolution in the financial technology sector. Founded by fintech entrepreneurs Richard Poulton and Danny Pezeshki, and backed by Vietnamese tech giant VNG, Instantia aims to redefine FX risk management by delivering comprehensive, real-time market intelligence that empowers companies to make more informed financial decisions. The firm’s end-to-end platform consolidates currency hedging positions into a user-friendly interface accessible via a free mobile and desktop app. This innovative app offers a suite of services such as currency options, forwards, spot FX, rate orders, and cross-border payments, providing businesses with the tools they need to navigate volatile currency markets skillfully.
Addressing the Needs of Modern Businesses
Instantia is set up as an Australian Financial Services (AFS) licensed entity, making it a critical asset for importers and exporters grappling with the volatile fluctuations of the Australian dollar against major currencies. Poulton and Pezeshki leveraged their extensive experience from AFEX and Corpay to identify an innovation opportunity in the FX sector, which is cluttered with outdated, paper-based systems that fail to provide current market data. Recognizing that traditional strategies like forwards and options often complicate managing currency risk due to multiple timeframes, they saw the need for a more streamlined, real-time solution.
The heightened need for fiscal visibility and currency confidence is undeniable as we approach 2024, a year fraught with significant geopolitical events and major global elections. The AUD’s 13.5 percent movement range in 2023 alone underscores the complexity businesses face in managing currency risk. Instantia addresses these challenges head-on by offering real-time FX position visibility, using forecasts generated from Bloomberg Intelligence, and in-house data modeling combined with quantitative analysis. This advancement provides businesses with the clarity they need to make well-informed hedging decisions swiftly.
Enhancing Client-Centric Performance
CFOs often grapple with locked-in options structures and outdated service models offered by traditional financial institutions, leading to a lack of transparency and comprehension. Instantia’s founders emphasize the necessity for a more client-centric approach, moving away from traditional sales-centric models. By focusing on the customer’s needs and providing a transparent, easy-to-understand platform, Instantia offers a solution that diversifies from the norm. Pezeshki highlights the struggle businesses face due to service models that lag in evolution and fail to meet contemporary needs.
Instantia’s commitment to responsible risk management is evident in their platform’s design, which includes a Strategy Builder that helps users develop personalized hedging strategies based on their experience and risk profile. The Market Matrix tool is another key feature, providing insightful market data analysis that enables quick and informed hedging decisions. These innovations facilitate a comprehensive view of an organization’s FX position, eliminating guesswork and enhancing transparency. The company’s name, derived from the Latin word meaning ‘to be present,’ speaks to its dedication to staying engaged with clients through every step of their FX journey.
Fostering Better Financial Health
CFOs often struggle with rigid option structures and outdated service models provided by traditional financial institutions, resulting in a lack of transparency and understanding. The founders of Instantia stress the importance of a more customer-focused approach, moving away from conventional sales-driven models. By prioritizing the customer’s needs with a clear, transparent platform, Instantia sets itself apart from the norm. Pezeshki notes the difficulties businesses endure due to outdated service models that don’t meet modern requirements.
Instantia’s dedication to responsible risk management is showcased through their platform’s design, which includes a Strategy Builder for crafting custom hedging strategies tailored to users’ experience and risk profiles. Another essential feature is the Market Matrix tool, which delivers valuable market data analysis, enabling swift and informed hedging decisions. These innovations provide a holistic view of an organization’s FX position, removing guesswork and enhancing transparency. The company’s name, derived from the Latin word for ‘to be present,’ reflects its commitment to supporting clients throughout their entire FX journey.
