Asian corporates embrace AI & embedded FX services

Asian corporates are increasing their use of artificial intelligence and embedded foreign exchange tools in treasury operations. New research from Integral found stronger demand in Asia than in Latin America or Europe.

Its survey found that 85% of Asian treasurers expect embedded FX services to play a significantly greater role over the next five years, compared with 78% in Latin America and 73% in Europe. That suggests companies in the region are more confident about integrating FX risk management into treasury management systems.

The findings come as banks in Singapore and across Asia expand their use of AI in services for business customers. DBS recently rolled out agentic AI tools to 350,000 corporate clients, adding to signs that lenders are automating more client-facing processes.

Integral's research suggests this shift is closely tied to the quality of banking infrastructure behind the scenes. Embedding FX services in corporate treasury systems depends on application programming interfaces, and the survey indicates that many businesses still see weaknesses in those connections.

Among midsize corporates, 43% cited the maturity of bank API connections as the biggest barrier to embedding FX management. The result points to a gap between demand for more automated treasury tools and banks' readiness to support them.

Demand for Integration

Corporate treasurers have been seeking ways to reduce manual work in currency transactions, particularly when businesses handle large payment volumes across markets. Integrating FX tools directly into treasury systems can help companies manage hedging, execution, and exposure monitoring within the same workflow.

One Asian bank surveyed expects API usage to rise among corporates with heavy transaction volumes. It said integrating dealer platforms through APIs could reduce the need for manual voice- and chat-based trading.

Banks also see AI becoming a more important part of that model. Half of those surveyed said agentic AI and machine learning would be the most important technologies shaping distribution strategy for corporate clients.

That points to a service model in which more treasury and FX tasks are handled through connected software rather than separate human-led interactions. In that environment, the value of AI depends not only on decision-making tools but also on how easily systems can exchange data and instructions.

Singapore Context

Asia has emerged as an early market for agentic AI in financial services, particularly in Singapore, where banks and regulators have been exploring its use while setting guardrails around risk. The Monetary Authority of Singapore has published guidance intended to help financial firms manage AI-related risk.

That backdrop matters for banks serving corporate treasurers, who want faster and more integrated ways to manage currency exposure. For lenders, offering embedded FX services increasingly means combining AI-driven processes with API-based connectivity that fits into a client's existing treasury software.

The survey findings suggest banks may need to invest as much in technical integration as in AI applications. If API links are unreliable or not mature enough, efforts to automate workflows could be limited even where client demand is strong.

Pressure on Banks

The research also highlights a difference in perspective between banks and their customers. While many banks view AI and machine learning as central to how they will distribute services, midsize corporates appear more focused on basic connectivity and execution.

That creates pressure on banks to show that digital strategy is translating into practical improvements for clients. Treasury teams may welcome AI-led automation, but only if it removes operational friction rather than adding another layer of systems complexity.

For providers of FX infrastructure and treasury technology, the opportunity lies in closing that gap. More connected bank platforms could make embedded FX services easier to use, especially for companies operating across several currencies and jurisdictions.

"API access will be key to embedding FX management and automating it through AI. Asian corporates are especially enthusiastic about the opportunities of integrating FX into their TMS solutions. APIs and AI connectivity are two sides of the same coin, and banks will need to deliver on both as corporates demand a more streamlined solution when navigating FX risk," said Harpal Sandhu, Chief Executive Officer of Integral.