Citi’s latest FX Vendor Review points to institutional clients that foreign exchange vendors must invest in better
integration, smarter execution tools, and compliance with industry standards, or
risk becoming obsolete.
In its fifth annual FX Vendor Review, Citi surveyed clients
and evaluated vendor performance across key benchmarks. While overall
satisfaction with FX vendors remains high at 90%, a strong majority, 85%, of
clients flagged the need for improvements, particularly in execution and
workflow integration.
The findings suggest a shift in client expectations toward
vendors that play a broader, more embedded role in execution workflows.
Vendor Switching Declines, but Pressure Mounts
The survey found a sharp drop in vendor switching, down from
51% in 2021 to just 22% in 2025. This trend suggests growing loyalty—or at
least entrenchment—among clients. However, Citi notes that lower switching
rates do not signal complacency. Instead, clients appear to seek deeper
collaboration and long-term enhancements, with execution and operational
efficiency at the forefront of their minds.
“Our ultimate goal is to enhance connectivity, expand product offerings, bolster stability, and improve overall market operations to further benefit our clients, liquidity providers, and all other market participants,” said Ayesa Latif, Global Head of Foreign Exchange Products at Citi.
As FX vendors move beyond the traditional role of Execution
Management Systems, they are becoming more deeply integrated into client
infrastructure. This trend raises the bar for technical capabilities,
connectivity, and regulatory alignment.
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The review highlights a number of barriers that vendors face
in meeting these expectations. Rising infrastructure maintenance costs and
regulatory burdens are putting pressure on capital expenditure. In many cases,
vendors must prioritize short-term revenue retention over long-term innovation,
a dynamic that Citi warns could accelerate client attrition if not addressed.
Review and Outlook
Citi’s FX Vendor Review evaluates platforms across nine key
metrics, including functionality, cost, governance, and customer service. The
report also incorporates client views on regulatory developments, data use in
execution, and the outlook for next-generation FX technologies.
The findings indicate that while vendor switching is
slowing, expectations are rising. Vendors that fail to innovate in a
capital-constrained environment could struggle to remain competitive in a
rapidly evolving FX landscape.
This article was written by Jared Kirui at www.financemagnates.com.
