Finzly & Derivative Logic partner to provide interest rate hedging capabilities to community FIs

By Pavithra R

Finzly, a cutting edge FinTech solutions provider to banks of any size, anywhere, has announced that the firm has partnered with Derivative Logic, an independent hedge advisory firm that provides proven hedge structuring and execution capabilities.

The partnership, recognizes the importance of offering specialty banking services to commercial banking customers and positions community and regional financial institutions to secure a competitive advantage in the marketplace by providing interest rate hedging capabilities to their commercial borrowers. While doing so, the institution grows its fee income mix, reduces 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. 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,” said Jim Griffin, Managing Director, Derivative Logic.

Established since 2006, Derivative Logic is an independent hedge advisory firm combining financial derivative market expertise with proven hedge structuring and execution capabilities in the interest rate and currency derivatives and Defeasance Services. It provides a full range of independent, unbiased hedge advisory services to corporations, real estate, tax-exempt, Native American, not-for-profit and municipal borrowers.

“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. 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,” said Booshan Rengachari, founder and CEO, Finzly.

Recently, Arvest Bank selected Finzly Trade Finance Platform EXIM STAR.

Founded in 2012, Finzly (formerly SwapsTech) found initial success in its foreign exchange, trade finance, lending, digital banking, and branch banking solutions. With its launch of the BankOS platform and Payment Hub solutions, the FinTech has expanded its mission to enable banks to accelerate product development by creating an Appstore ecosystem that empowers banks to instantly and easily try new products and services.