Assure Hedge launches OpenHedge, its platform for Embedded Hedging

Assure Hedge

OpenHedge, the platform for Embedded Hedging launch

• Fintech firm’s mission is to bringing hedging to everyone

• OpenHedge allows hedging services to be embedded into any app or user experience

• Embedded hedging is a perfect solution to the $100 billion currency protection gap

• The company has already entered into innovation partnerships, including with Accounts IQ, a cloud accounting solution

London, 26 April, 2022:  today, at the FTT Embedded Finance & Super Apps Conference, foreign exchange technology firm Assure Hedge announces the launch of OpenHedge, its platform for embedded hedging.

 

Assure Hedge has as its mission to bring hedging to everyone, working with a broad range of distribution partners to close the massive currency protection gap that exists today. Research shows* that while 80% of large companies with currency risks hedge their currency exposure, 80% of SMEs do not – and still fewer individuals. As result, millions of people face unmitigated risk to their businesses and their livelihoods; a risk estimated to be over $100 billion annually**.

 

This currency protection gap arises because of complexity, access and cost. Firstly, not many institutions offer hedging products, owing to cost and regulation. Secondly, hedging services are typically presented in highly technical language. And, thirdly, costs can make it prohibitively expensive for SMEs and individuals to cover their exposure.

 

To address the currency protection gap, Assure Hedge has launched OpenHedge, its platform for embedded hedging. Embedded hedging solves the problem of access, because hedging is proactively offered through a channel partner the customer is already using, such as when they are making a purchase.  Embedded hedging also solves the problem of complexity, because a simple solution is offered to a simple challenge, like guaranteeing how much a company will pay for a service in three months’ time. And, lastly, Embedded hedging solves the cost problem. Since the service is fully digitized, all of the analogue administrative costs and distribution costs are removed, reducing the cost to the end customer.

 

OpenHedge is an API-first platform that allows hedging services to be embedded into any partners app or user experience. Open Hedge is built on 3 pillars:

 

  • Hedging-as-a-service: Simplified, contextually-relevant and self-service hedging over the right channel at the right time

 

  • Embedded Credit: credit at the point of need, meaning end customers do not need to advance any funds

 

  • Banking-as-a-service: wallets, payments and cards that allow partner brands to broaden their embedded finance offering to address more complicated use cases

 

Barry McCarthy, Founder & Head of Embedded Hedging at Assure Hedge, said about the launch:

 

“Embedding hedging into everyday activities is the key to addressing the currency protection gap. The reason is that we need to reach the people who are not hedging today and we need to present a simplified solution to their currency exposure at the time that exposure arises. Without that, hedging will remain the privilege of only very large companies with treasury teams and corporate bankers.”

 

OpenHedge is already being piloted for a number of use cases. The company has entered into innovation partnerships with cloud accounting companies as well as B2B marketplaces, and believes the solution is also highly applicable to international payroll companies, universities and freelancer platforms, whose users are subject to future-dated currency exposures.

 

Tony Connelly, CEO & Founder of Accounts IQ, a cloud accounting software firm which has entered into an innovation partnership with Assure Hedge, commented:

 

“At AccountsIQ we are committed to using embedded fintech to help our customers save time and money. AccountsIQ users have operations across over 80 countries so they deal in multiple currency transactions constantly and have exposure to FX rate fluctuations.  By integrating with OpenHedge we can allow our customers to dynamically hedge their currency exposures based on actual transactions in AccountsIQ  – at the best rates possible.  By using OpenHedge hedged rates over the course of the financial year, CFOs get certainty by locking in their budgeted rates for the year so they can focus on the trading results of their businesses rather than the gains/losses generated by currency fluctuations in the markets where they trade.”

 

*East & Partners, March 2021

**Aperture Consulting

About Assure Hedge

Our mission is to provide currency hedging to everyone. We work with a wide range of financial and non-financial companies, giving them the platform to offer currency risk management services to their customers.

 

Our solution is simpler and offers more choice. As a technology company, authorised and regulated by the FCA, can offer a broad range of currency services and we handle all of the complexity so our customers don’t have to.

 

We build businesses. Our platform enables companies to quickly open up new revenue opportunities, meeting unmet customer needs, and growing customer loyalty.

 

We are embedded. Our solution can be offered standalone, white-labelled under your brand or seamlessly embedded in your existing offering – whatever makes sense depending on your needs and capabilities.

 

For more information about our company and solution, or to book a demo of OpenHedge, please visit assurehedge.com

 

For press enquiries, please email Diana Harut: dharut@assurehedge.com

High Risk Investment Notice

 

Trading in leveraged financial instruments such as Options or other financial derivatives, carries a high level of risk and may not be suitable for all investors.  Investors who make use of these financial products run the risk of substantial capital losses which may exceed your initial deposit. Assure Hedge (UK) Limited makes no claim or warranty regarding either the appropriateness or suitability of these instruments for your purposes whether commercial or otherwise. Assure Hedge (UK) Limited may provide general commentary or educational material available on its website or otherwise, which is not intended as investment advice. You should carefully consider your financial situation and needs and seek independent advice from a duly authorised financial adviser. Assure Hedge (UK) Limited assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. You should read and understand Assure Hedge (UK) Limited’s Terms and Conditions prior to taking any further action.

MORE ARTICLES FROM ASSURE HEDGE


Assure Hedge
Assure Hedge is the world’s leading platform provider of modern, digitally delivered OTC (over the counter) hedging products and solutions.