The financial markets have always been dynamic making the ever-changing role of forex brokers complex and challenging. Needless to say the last couple of years have seen momentous change in the industry. With high inflation and tightening monetary policies of central banks around the world, 2022 is shaping up to be another demanding year for brokers.

The last two years have also seen a surge in retail trading with a huge number of new investors entering the markets and experienced ones raising their trading volumes. A survey revealed that 66% of these new investors were under the age of 45. Their reasons for trading included planning for retirement or taking advantage of the volatility in the market with a small entry amount.

The influx of traders only increased the competitiveness in the industry worldwide. Brokers now not only need to offer them diverse assets and the most advanced technologies for trading, they also need to cater to the the high expectations of millennial and Gen Z traders.

This makes the choice of service provider to partner with even more critical to the success of retail brokers.

AIRSOFT Technology with its all-in-one technology solution, solves some of the most pressing onboarding challenges for brokers.

Extensive Customisation of the CRM System

The Customer Relationship Management platform is at the centre of all onboarding efforts for brokers. As a broker expands into multiple jurisdictions and different business models, these changes need to be reflected on the CRM. They face the challenge of customising the system, depending on the target jurisdictions.

For starters, strict regulations and compliance protocols by global regulatory bodies mean different limits to leveraged trading, varied KYC requirements, and a list of prohibited assets for trading, based on the country involved. It is now crucial for brokers to maintain documents and records of compliance with regulatory bodies. This requires powerful back-office tools.

Customisation is not only restricted to compliance. The CRM needs to be user-friendly and accessible, which is possible when it has multi-lingual capabilities. If brokers lack such a system, it will result in a subpar onboarding funnel, leading to lower conversions. Some other desirable features of a robust CRM solution include powerful security management and tools to manage access rights.

AIRSOFT offers comprehensive software solutions and end-to-end consulting services for the financial sector. Experts at the company have been associated with the industry for close to two decades, which gives them a unique insight into the arena. It also enables them to design the most customised and compliant offerings for both start-ups and established brokers.

Set up a meeting and free demo with an AIRSOFT expert at the iFX EXPO Dubai 22-24 February at Super Booth #34.

Advanced Technology and Infrastructure for Automation

Intelligent solutions that simplify client onboarding are one of the top trends in the capital markets, reveals a 2020 Capgemini survey. Accessibility and ease of use are some of the biggest advantages of automated platforms. These platforms enable brokers to eliminate time and energy-intensive tasks, such as KYC, lead management, IB management, while offering extensive visibility. This frees brokers up to focus on enhancing clients’ trading experience, new trading technologies, and more to ensure client retention.

AIRSOFT helps brokers increase their efficiency with integrated solutions like multi-level IB programs, dedicated support and project manager, integrated VOIP solutions, and integrated banking solutions.

Multiple Stable Payment Methods for Clients

The pandemic has accelerated the shift towards digital payments, and this shift has highlighted the need for brokers to update and differentiate their offerings. Friction in deposits and withdrawals can lead to inefficient client onboarding, and often loss of potential clients. It can also lead to an increase in the time taken to onboard, and high operational costs.

Bank accounts are hard to open and designated client funds accounts take a ton of paperwork, certifications, and compliance, based on the jurisdiction. This makes payments a challenging issue from the legal perspective.

PSPs can be unregulated, and their networks can suffer from downtime, without warning, leading to loss of funds. To ensure compliance, credibility, and client retention, it is important for brokers to offer reliable and alternative payment methods, so that transactions are smooth and secure.

Integrating each PSP in a CRM is a tedious process, which involves wasting precious time and resources in developing and testing, ultimately leading to loss of clients. Unless there is a development team dedicated to payment integrations full-time, this is a counter-productive effort.

AIRSOFT offers integrated PSP solutions through its partnerships with leading PSPs, cashiers, and exchanges, so that traders in any part of the world can easily deposit and withdraw funds. The company can further integrate with any leading PSP, as per broker demand through flexible APIs. All this results in increased operational efficiency for the broker, along with access to tools that enable enhanced trading experiences.

Apart from intelligent onboarding solutions, AIRSOFT helps brokerage firms in their expansion efforts through dynamic business consulting services, website development, and referrals to industry experts. It is a one-stop ecosystem for all broker needs.

Sneak Peek into 2022

To help keep their clients at the forefront of the forex broker space, AIRSOFT will be launching a fully integrated MT5 solution. AIRSOFT will obtain the full MT5 license with unlimited features saving their brokers money, time and lengthy procedures. Brokers will be able to instantly offer their clients a branded experience on one of the most popular trading platforms for both web and mobile (iOS and Android). Watch this space to find out more.

Meet us at iFX EXPO Dubai 22-24 February, 2022

The AIRSOFT team will be exhibiting their leading-edge technology solutions for brokers at Booth #34 at the iFX Expo. Book a one-on-one meeting with one of our experts to discuss a tailored solution for your brokerage.

Fenergo (https://www.fenergo.com/), the leading provider of digital solutions for client lifecycle management (CLM), today released its annual findings on global financial institution enforcement actions which show that the value of penalties has reduced by half (49%) in 2021.
 
Enforcement actions to financial institutions and their employees totalled $5.4 billion for non-compliance with Anti-Money Laundering (AML) and data privacy regulations, in comparison to a staggering $10.6 billion in 2020 – the year that saw the culmination of several regulatory investigations into the 1Malaysia Development Berhad (1MDB) scandal. The fallout from the scandal continued to influence enforcement activity in Malaysia in 2021 with AmBank Group agreeing to pay a $698.3 million settlement to the Ministry of Finance for its role in the violations. 
 
Notable enforcement actions in 2021 included a $2.03 billion penalty issued to a major Swiss bank by the French Court for historic tax fraud. In the US, regulators issued $673.2 million in enforcement actions to foreign banks, including a $100,000,000 fine to the UAE’s oldest private bank, Mashreqbank PSC, for illegally processing more than $4 billion of payments linked to Sudan.
 
The total volume of fines levied to financial institutions for compliance breaches was approximately 176 compared to 760 in the same period the year prior. The average fine value for AML-related compliance breaches issued to financial institutions in 2021 was $34.4 million. EMEA saw the single biggest regional increase in the value of financial penalties from just over $1 billion ($1,005,499,683) in 2020 to $3.4 billion ($3,448,452,122) in 2021. The global research comes just weeks after two major UK headquartered banks were fined $85 million and $350.3 million for AML failures.  One of the UK banks was fined for serious weaknesses in its anti-money laundering controls over an eight-year period, which included ineffective transaction monitoring systems.
 
2021 also saw the rise of non-banking financial firms being targeted by regulators, such as virtual asset service providers. Crypto-trading platform, BitMEX and crypto payments provider Bitpay, were fined a combined amount of $100,507,375 for failing to comply with money laundering obligations.
 
Financial institution employees continued to face regulatory scrutiny in 2021 with 16 individuals fined $16.5 million for their role in AML-related compliance breaches. In Bahrain, the High Criminal Court went as far as sentencing six Future Bank employees to prison with a fine of $2.7 million each for their role in Bahrain’s largest money laundering case in the history of the state.
 
Data privacy fine values were down by 82% at $17.4 million, the majority ($11.5 million) of which were for GDPR breaches in Europe.
 
Commenting on the findings, Rachel Woolley (https://www.linkedin.com/in/rachel-woolley-fenergodirectorfinancialcrime/), global director of financial crime at Fenergo, said: “The decrease in fines in 2021 is largely attributed to a reduction in the number of multi-billion-dollar fines compared to previous years. The pandemic has also impacted regulatory investigations; regulators weren’t able to initiate as many on-premise investigations in the last two years which has likely had a knock-on effect on enforcement actions. Trends identified in our research, as well as recent financial crime scandals, suggest that financial institutions aren’t adequately equipped to manage the financial crime risks to which they are exposed. Without effective AML/KYC systems and controls that allow firms to not only know their customer and the associated risks, but also understand their behaviour throughout their lifecycle – the door will be left open for criminals.”

“With criminals using more sophisticated methods for hiding illicit gains such as crypto currencies and other virtual assets, the clock is ticking for financial institutions to adopt technology that provides a holistic view of customers and the risk they potentially present, as well as identifying activity and behaviours that could indicate criminal activity. Until they do, we will continue to see damaging enforcement actions being handed out by regulators.”

Bitcoin’s price could pass the $100,000 milestone in the next five years, according to a research note by Goldman Sachs analyst Zach Pandl.

How did we get here? Goldman Sachs believes Bitcoin will steal market share from gold in the “store of value” market, driving its price just above $100,000.

• A “store of value” conventionally refers to an asset or commodity that doesn’t depreciate in value and can be treated as a safe haven for capital by risk-averse investors.
• Goldman estimates Bitcoin holds 20% of the gold-Bitcoin store of value market: Bitcoin’s market cap is $700 billion, compared with the total worth of gold as an investment at $2.6 trillion.
• The Wall Street giant predicts that greater crypto adoption could drive Bitcoin’s store of value market share up 50% over the next five years.

Is Bitcoin really a store of value? Given Bitcoin’s inherent volatility, it might seem a stretch to assume that investors will treat it as a safe haven for their cash.

• Bitcoin has long been referred to by some as “digital gold,” as it shares certain characteristics with the precious metal, like the fact that it also has a perceived value that isn’t derived from the performance of any specific entity.
• Yet the constant price volatility—it hit a record of almost $69,000 in November but was trading below $45,000 as of writing—might mean investors still trust gold as a better store of value.

The big takeaway: Regardless of whether investors treat Bitcoin as a store of value, the allure of sky-high returns and adoption by FIs should drive sustained price growth.

• Bitcoin was the top-performing asset class in 2021 with a return of 60%, just in front of crude oil (55%) and well ahead of the S&P 500 (29%).
• As such, the potential for staggering returns will continue to capture the attention of retail investors.
• And financial institutions like Goldman Sachs are getting in on the act by trading futures, and custody could soon follow.
• The combination of these factors will push Bitcoin further into the mainstream and see its price tick up.
• 

Silicon Valley growth fund provides leader in online biometric face authentication with fuel for rapid growth as demand accelerates
iProov, the world leader in online biometric face authentication, today announced a $70 million (USD) growth investment from Sumeru Equity Partners (https://sumeruequity.com/)(“Sumeru”). 
 
Headquartered in Silicon Valley, Sumeru invests in technology firms with the potential to change the world, with a particular emphasis on helping companies expand in North America. 
 
iProov will use the new capital from Sumeru to rapidly build on its leadership in the United States and expand its international customer base, accelerate the growth of its global partner network, and maintain its position at the forefront of technology innovation while hiring top-quality staff worldwide. 
 
iProov’s patented technologies, Genuine Presence Assurance (https://www.iproov.com/iproov-system/technology/genuine-presence-assurance)™ (https://www.iproov.com/iproov-system/technology/genuine-presence-assurance) and Liveness Assurance™ (https://www.iproov.com/iproov-system/technology/liveness-assurance), are trusted by many of the world’s most security conscious organizations, including the U.S. Department of Homeland Security, the UK Home Office, the UK National Health Service (NHS), the Australian Taxation Office, GovTech Singapore, Rabobank, ING and others. 
 
Since iProov’s Series A in 2019, the cybersecurity company has achieved substantial growth. iProov tripled its revenues from 2020 to 2021 (https://www.iproov.com/press/iproov-reports-record-year-as-demand-for-secure-online-identity-verification-soars), processing more online verifications during one 10 day period in 2021 than in the whole of 2020. More than 1 million verifications were completed in a single day several times throughout 2021. 
 
“This investment by one of America’s leading growth funds recognizes the preeminent position we have established,” said Andrew Bud, Founder and CEO of iProov. “Our potential is enormous and we now have the resources to scale in the United States and worldwide. Our strong balance sheet will give our customers and partners confidence in our long-term ability to keep them and their customers secure.”
 
“iProov is a unique business and its combination of patented deep technology, exceptional customer references and hugely capable team positions the company for outstanding future growth,” said Kyle Ryland, Managing Partner at Sumeru. “We’re delighted to support the company in the next phase of its expansion and are very excited about the opportunities that lie ahead.”
 
Kyle Ryland, Managing Partner of Sumeru, is joining the existing iProov board. iProov was advised on this transaction by Houlihan Lokey and existing investors JRJ Group. Legal advice was provided by Cooley. 
 
Learn more about iProov’s current career opportunities (https://www.iproov.com/about-us/careers).

Provides U.S. investors access to international investments that align with their values 

Wahed, a financial investment company that aims to advance financial inclusion through accessible, affordable, and values-based investing, will debut the Nasdaq’s first Shariah-compliant and ESG-aware ETF today. The Wahed Dow Jones Islamic World ETF (Ticker: UMMA), which will begin trading today on the Nasdaq, seeks long-term capital appreciation and looks to provide investors access to international, ex-U.S. investments that seek to better align with their values. 

The new fund notably expands Wahed’s screening beyond Shariah-compliant or halal constituents by also filtering based on environmental, social, and governance factors. UMMA complements Wahed’s U.S. equity-focused Wahed FTSE USA Shariah ETF (HLAL), which debuted on the Nasdaq in 2019, by seeking to provide U.S. investors exposure to international securities that meet the Shariah-compliant criteria. The global exposure afforded by UMMA may significantly increase the long-term investment fund landscape for investors who faith-based restrictions may have historically limited. The Fund will benchmark to the Dow Jones Islamic Market International Titans 100 Index, a data-driven index owned and maintained by S&P Dow Jones Indices, and is designed to measure the stock performance of the largest ex-U.S. companies that have passed rules-based screens for adherence to Shariah investment guidelines. 

“We believe our new fund provides investors a highly personalised investing experience that is more true to their theological beliefs,” said Samim Abedi, Chief Investment Officer at Wahed. “The line between ethical, socially responsible, and ESG investing has appeared to blur, and we’re excited to seek to provide investors a vehicle to diversify their portfolio with international investments that align with even more of their beliefs. By bringing these values-based investment principles together, we believe we’re addressing a clear gap in the market for an international shariah-compliant fund managed through an ESG investing lens.” 

Wahed is launching UMMA in collaboration with the U.S. Bank’s Listed Funds Trust and Dow Jones. The fund effectively tracks the Dow Jones Islamic Market International Titans 100 Index, an index of the largest non-U.S. companies in emerging and developing nations that meet specific Islamic finance guidelines. Constituents are then screened further utilising RepRisk, a leading ESG data science solution combining machine learning and human intelligence to assess ESG risks. UMMA has an expense ratio of 0.65% 

For more information on the fund, view the UMMA prospectus and related disclosure information here.

Along with tech stocks, another thing that’s been hot on Wall Street over the past couple of years is the listing of special purpose acquisition vehicles, otherwise known as SPACs. According to analysts at Renaissance Capital, there were around 200 SPACs that went public in 2020 raising a total of $64 billion between them. But what exactly is a SPAC and how can ordinary investors get involved?

A SPAC is a company which is set up in order to merge with or acquire an existing business. It has no commercial operations at first but with capital raised it goes out and looks for a deal to complete. Sometimes they are also known as “cash shells” or “blank check” companies, referring to the fact that the company has no business (only cash) and its future operations are as yet unknown.

While the UK hasn’t seen as much SPAC business as the US, last year the FCA revised its listing rules in order to attract more listings to London. Mainly, these rules set out how shares in a SPAC can continue trading on the market once a deal is announced, subject to certain conditions, instead of being suspended. The first SPAC to list in London, in November 2021, was Hambro Perks Acquisition Company. The firm raised £140 million and is looking to complete a combination with a technology-enabled business.

Benefits to companies and investors

Being acquired by a SPAC offers established companies an alternative route to going public compared to a traditional IPO. As well as having increased access to capital, the company could benefit from the expertise of the SPAC’s management team. Also, going public using a SPAC can be a lot faster than an IPO due to the SPAC already being listed and cheaper too.

One of the biggest SPAC deals was in June 2020 when US gambling giant DraftKings merged with Diamond Eagle Acquisition. This entity had previously raised $350 million and had the rather vague aim of “…effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.”

For investors, the original subscribers to the pre-IPO fund raise usually gets the shares at a discount from the IPO price. There is also the hope of additional upside opportunities once a target company has been identified and goes on to perform well.

Digital Cloud Holdings I

One SPAC currently looking to raise pre-IPO funds on Crowd for Angels is Digital Cloud Holdings I. The business will be targeting providers of software for virtual events and conferences and is looking to join the Standard List of the London Stock Exchange at the end of January this year. Virtual events have a large market, estimated by Grand View Research to be worth $78 billion in 2019 and forecast to grow to $774 billion by 2030.

To see the full pitch visit: https://crowdforangels.com/company/digital-cloud-holdings-i-253 - Capital at risk. Investing in companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio.

Taking a responsible approach to the current climate and Covid Pandemic.

The Card and Payments Awards 2022, after consultation with sponsors and other stakeholders, has been moved to a new date, Thursday 5^th May, due to the unforeseen rise in infection from the Omicron variant. 

“Our objective this year, having gone virtual last year, is to ensure, one way or the other, that we get into the room together safely, in 2022 – howsoever!!” said Michael Harty, Managing Director of The Card and Payments Awards and “if we need to move this date again to ensure an in-person event this year then this is something that we will do if necessary – this is the feedback that we are getting from our critical stakeholders. Now in our 17^th year, our core objective continues to be the independent recognition of excellence and innovation in the payments industry; this is what our sponsors want and this is why they continue to support this event year after year.

“TCPA is a highly respected arbiter of excellence and innovation in the payments industry, this, of course, we can do virtually but a key element of our product is providing an unrivalled networking and discussion platform which is best achieved in person. The flexibility that we are seeing from sponsors and attendees alike speaks volumes for the appetite within the industry to host an in-person event in 2022, this is what sets us apart and this is what we do best, I am very proud of that”.

The awards will take place at JW Marriott Grosvenor House, Park Lane London on Thursday 5^th May 2022.

For more information: Email Liza@cardandpaymentsawards.com

Increased Efficiencies and Successful Integration
With GreenBox Lead to Record Setting Quarter in its Retail Division

GreenBox POS, an innovative blockchain ledger fintech company, today announced that its point-of-sale subsidiary company, ChargeSavvy, recorded the best quarter in its 9-year history, for its retail division during the fourth quarter of 2021. The retail division saw an average increase of 166% demonstrating remarkable growth compared to the same period of 2020.

ChargeSavvy was acquired by GreenBox in July 2021 due to its impressive merchant client portfolio roster and industry leading point of sale technology. By successfully assimilating ChargeSavvy operations and technology with GreenBox to drive efficiencies, in just five months, ChargeSavvy’s has multiplied its book of business while improving overall profitability. Since taking over, GreenBox has enhanced the existing point of sale which has resulted in higher demand due to feature sets and dependability in transaction flow.

“ChargeSavvy’s immediate and record-breaking results undoubtedly demonstrate our leadership team’s ability to execute on our acquisition strategy and vision,” said Fredi Nisan, Chief Executive Officer of GreenBox. “This was our first major purchase with an integration of the team, culture and operations. Adding to this mix was our guidance, foresight and technological expertise in the digital payments industry and we’re seeing incredible results.”

Phil Nguyen, the newly appointed Managing Director of ChargeSavvy added: “Being acquired can pose an array of challenges and uncertainty. GreenBox ensured a seamless transaction, with a smooth transition, ultimately, to position ChargeSavvy for never-before seen growth, while exhausting some obvious operational efficiencies. By working together, we quickly realized the synergies that facilitated the resurgence of our business and secure best-ever quarterly results.”

 Free open banking platform Nordigen has entered into a partnership with CH Konsultatsioonid on their accounting solution Trigon to deliver financial data directly into the application and simplify the reconciliation process. 

CHK is an international company that offers accounting and consulting services to Estonian, Finnish, and Lithuanian clients. The company expertly provides classic accounting services, crisis control and problem solving solutions, such as restoring accounting, the resolution of conflict situations and tax review consultation.  

“Trigon is a next generation accounting software, where emphasis is on making the accountant’s work more effective by automating repetitive tasks. The integration with Nordigen takes the application one step further into the future, by allowing data to be delivered to the system directly from companies’ bank accounts. This streamlines the accounting process and eliminates time-consuming manual tasks,” says Jaanus Karlson, Product Manager at Trigon. 

The integration with Nordigen’s account information service elevates the solution's functionality. Accountants can now automatically import transaction data from their customers’ bank accounts, allowing them to use the platform for seamless customer account reconciliation. Nordigen’s API is fully PSD2 compliant, so Trigon users can have peace of mind when it comes to security.

“CHK’s accountants are financial experts delivering convenient solutions for accounting and financial management. Open banking and PSD2 were created to allow easier and more seamless data sharing practices and we are delighted that our solution is able to enhance services and give CHK’s clientele a more integrated experience,“ says Rolands Mesters, co-founder and CEO of Nordigen.

ENDS