Transformation Solutions

FX Markets Revenue Recovery & Business Strategy Transformation

Challenge

An APAC universal bank was facing sustained underperformance within its Global Foreign Exchange (GFX) business, which had failed to meet revenue targets for several consecutive years. Despite a strong brand and market presence, the FX desk had stagnated in both profitability and client growth.

The core challenges identified included:

• Declining client transaction volumes across key FX pairs.

• Unfocused coverage models leading to inconsistent client engagement.

• Limited data-driven insight into revenue attribution by client, currency, and product segment.

• Fragmented visibility into pricing, spreads, and competitive performance across regions.

• G10 desk underutilisation and lack of strategic clarity on growth opportunities.

The bank engaged a Transformation Strategy Lead Consultant to conduct a data-driven deep dive, identifying root causes and formulating actionable strategies to reaccelerate growth, optimise client engagement, and reposition the FX business for long-term competitiveness.

Solution

Harmonic Strategy executed a Pan-Bank FX Deep Dive Transformation that combined analytical rigour, commercial strategy, and front-office enablement. The initiative was anchored on three strategic pillars: Client Coverage, Client Transacting Patterns, and FX Currency Component Performance.

1. Client Coverage Model Redesign

• Conducted a full segmentation of the client base across corporate, institutional, and interbank segments using transactional and relationship profitability data.

• Developed a tiered coverage model — classifying clients by wallet potential, frequency, and strategic fit.

• Introduced a client prioritisation framework mapping banker capacity to target clients, optimising coverage ratios.

• Designed a Client Interaction Playbook, aligning sales incentives to frequency, spread, and cross-sell metrics.

• Recommended relationship-level KPIs, replacing generic volume goals with revenue efficiency and wallet penetration metrics.

2. Client Transacting Behaviour Analytics

• Deployed advanced data analytics on client transaction patterns — including product mix, tenors, and currency splits — to identify dormant relationships and high-value behaviours.

• Established FX Revenue Attribution Dashboards to visualise performance by counterparty, region, and currency.

• Identified cross-product opportunities between FX spot, forwards, and options through pattern recognition of repeat behaviours.

• Pinpointed under-traded segments where sales teams could deepen share-of-wallet via structured FX solutions.

• Introduced an early warning analytics framework to detect declining transaction trends before they impacted revenue.

3. FX Currency Component Optimization

• Performed a full currency-level margin analysis across G10 and EM currencies to identify high-potential pairs with spread compression opportunities.

• Conducted competitor benchmarking on pricing models, trade spreads, and market share by currency.

• Recommended a targeted desk expansion strategy — strengthening the G10 FX desk to capture increased trading flow and improve market-making capability.

• Rebalanced sales and trading focus across regions to align with volume and margin concentration zones.

• Implemented a currency profitability model integrated with front-office dashboards, enhancing trader visibility into real-time PL drivers.

4. Strategic Execution & Implementation

• Developed a transformation roadmap linking front-office strategy to technology enablement (CRM, client analytics, deal attribution systems).

• Created a global governance model for performance monitoring, with monthly review cycles for FX heads and regional COOs.

• Delivered data-driven executive reporting packs highlighting performance trends and revenue leakage points.

• Partnered with Finance and Risk teams to ensure alignment on revenue recognition and PL attribution integrity.

Key Deliverables

• FX Deep Dive Analytical Framework (Pan-Bank)

• Client Coverage Redesign Blueprint

• Client Transaction Analytics Dashboard

• FX Currency Profitability Model

• G10 Desk Expansion Strategy Document

• Governance & Performance Review Model

Client Benefits

• Repositioned the FX business through a data-led commercial strategy, improving client focus and revenue discipline.

• Achieved double-digit improvement in client engagement efficiency and material uplift in FX trading revenues within the first fiscal year.

• Expanded and strengthened the G10 FX desk, increasing capacity to service institutional flows and improving PL per trade.

• Enabled front-office teams with real-time insight into client behaviour and profitability trends.

• Enhanced governance and accountability through structured analytics and consistent review cadence.

• Established the FX Deep Dive framework as a repeatable methodology for other business lines within the Markets division.