OPENHEDGE
Bridging the Currency Protection Gap: OpenHedge solves your customers' needs when and where they arise
Open Hedge is an API-first platform that allows hedging services to be embedded into any app or user experience.
BUILT ON 3 PILLARS
HEDGING-AS-A-SERVICE
- Simplified, contextually relevant and self-service hedging over the right channel at the right time.
HEDGE NOW, PAY LATER
- Credit at the point of need, meaning your customer does not need to advance any funds.
BANKING-AS-A-SERVICE
- Wallets, payments and cards that allow you to broaden your embedded finance offering and address more complicated use cases.
WHICH COMPANIES WOULD BENEFIT FROM OPEN HEDGE?
Many B2B and B2C companies could solve their customers’ needs and challenges by embedding hedging directly into their platform.
Examples include B2B marketplaces, cloud accounting packages, freelancer platforms, relocation agents, payroll providers, universities, passion asset brokers, estate agents and travel agents.
HOW COULD THEY BENEFIT?
Embedded hedging allows businesses to significantly improve their unit economics and overall profitability by:
- Adding a new margin-rich revenue stream
- Selling to existing clients, with no additional customer acquisition cost
- Providing additional value-add, translating into lower attrition
THE CURRENCY PROTECTION GAP
Today, while 80% of large companies with currency risks hedge their currency exposure, 80% of SMEs do not – and still fewer individuals.
As a result, millions of people face millions of dollars of unmitigated risk to their businesses and their livelihoods.
Why does the gap exist?
The currency protection gap arises because of complexity, access and cost. Not many institutions offer hedging products, owing to cost and regulation.
Hedging services are presented in a language that is difficult to understand. And costs can make it prohibitively expensive.
EMBEDDED HEDGING PROVIDES THE SOLUTION
By offering hedging services through everyday channels***, the protection gap can be eliminated:
- Embedded hedging solves the problem of access, because hedging is proactively offered through a channel the customer is already using, such as when they are making a purchase.
- Embedded hedging 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.
- Embedded hedging solves the cost problem. Since the service is fully digitized, all of the analog administrative costs and distribution costs are removed, reducing the cost to the end customer.
***distribution of OpenHedge services is subject to proper authorisation or exemption under the Financial Services and Markets Act.
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.