EXCLUSIVE: How is Deriv Helping Underbanked Countries Get Access To Financial Trading?

Deriv, an online trading platform, is emerging as a serious contender to be amongst the largest trading platforms in the world. Used by traders across the globe, Deriv registers 65 million trades a month at a rate of 100 transactions per second. When you couple this with a $8 billion dollar turnover and rapid commercial growth, Deriv could very well take the space by storm. Its users can trade 24/7/365, and can open an account with just $10, with trades as low as 50 cents. Deriv are on a mission; to democratise trading for the financially underbanked and underrepresented. But how can they get there?

A Vision From The Beginning – Deriv has undergone a massive cycle of expansion since it began. Jean-Yves Sireau had originally started developing algorithms that could be used for financial mathematics and trading systems for retail investors in as early as 1999. Now, the company has an impressive 21-year history that seeks to make finance accessible for everybody, offering simple, reliable and flexible ways to trade forex, commodities, synthetic indices and stock indices with nothing but a mobile device. ‘Our company has gone through re-brandings and revisions throughout its history to meet the changing times. As we have grown, our offerings have grown too. We now offer more products and a range of platforms that our clients can choose from, giving everyone more ways to trade’, said Sireau, reflecting the dynamically improving culture in place at Deriv. ‘We’re constantly striving to improve in order to become a better all-round service provider for our clients, and we aim for another 21 successful years and more.’

Global Expansion – As Deriv seeks to help more people achieve financial prosperity, it has expanded with time. Employing 600 members of staff and housing 10 offices across the world, it is clear that Deriv wants to reach, relate and react with people of all lifestyles, New offices in London, Paris and Guernsey are set to be operational by the end of the year as part of a £5 million investment.

Furthermore, the Fintech business continues to expand in underbanked countries that do not have access to financial trading. This is evidenced in Deriv’s recent opening of a state-of-the-art HQ in Malaysia. Key UK investors of Deriv, such as billionaire entrepreneur and philanthropist, Jim Mellon, and businessman, Nigel Wray, also reflect how key stakeholders in the company have committed to the overall mission of Deriv.

The need to make a financial system as inclusive as possible was undoubtedly magnified by the COVID pandemic. In fact, there was an explosive growth of new traders entering the market as a result; in Q1 of this year, the total number of trades registered on Deriv passed 315 million. This marked a whopping 138% increase compared to Q1 of 2020. This trend held too. Q2 of 2021 saw a 167% increase in executed trades compared to Q2 of the previous year. The space is evolving at a quicker rate, now more than ever. Deriv are then presented with a scenario that all trading platforms could exploit. Yet, ‘Our strong reputation, client-focused offerings, and commitment to our mission to democratize trading sets us apart from our competitors’, and it is this strong track record that Sireau hopes will help Deriv to catapult. But how else can this feat be achieved?

‘Authenticity is the way forward in the world of fintech’ – Sireau believed that the trust of customers could be won by Deriv’s authenticity, it’s ability to appeal, understand and support the needs of millions of people. As the world of Fintech becomes more complex each day, with regular innovations in blockchain technology, machine learning and the use of AI, it is incredibly common for the average consumer to feel doubtful about the legitimacy of certain Fintechs. After all, trust is earned, and many Fintechs have not earned it yet, regardless of how robust their technology is.

‘Companies lose customers who don’t trust their business. There needs to be transparency, clearly defined core value and a genuine ongoing relationship with clients. Companies need to listen to their clients, avoid empty promises and truly care about their best interests’, said Sireau. But how are Deriv using their authenticity to do this?

Upholding Strong Core Values – ‘Competence, integrity, teamwork and customer focus.’ These have been the core values of Deriv since 1999, which Sireau believes have been ‘the North Star guiding us through difficult times.’ With a dedicated Customer Support Team that are always available to help clients with any issues, Deriv believes that in such a fastly evolving industry, their constant commitment to its customers, brand authenticity and core values have greatly solidified their respectability in the market and will continue to encourage new customers from underbanked societies to trust Deriv. Money is freedom, whether we like it or not, and Deriv hopes that its unquestionable loyalty to its principles will help more people become financially free.

Reducing Security Risks – As technology improves, it’s important to remember it improves for everybody, including those who do bad. Unfortunately, fraudsters have become increasingly successful at causing cybersecurity issues, jeopardising customer integrity and consumer protection. Often, this is due to many companies not having the expertise to combat the challenge. However, Deriv falls back on its core value of competency. ‘By hiring competent IT and security teams, the company can apply good security policies throughout its operations. Both teams regularly schedule an organisation-wide awareness drive on phishing attempts which includes tests and password change exercises.’ These exercises stop fraudsters from intercepting the company security wall, ensuring client and company safety.

Reducing Regulatory Risks – ‘By behaving in an honest and sincere manner in all its operations, Deriv has stayed compliant with all regulations and strives to remain so.’ This is extremely essential for Deriv, who has a presence in over 190 countries, each with its own specific laws, regulators and cultures to the legal approach. With greater expansion comes greater understanding. This will result in Deriv being competent, confident and clear with any risks when supporting the financially underbanked.

Reducing ‘Key Person’ Risks – No company should depend too much on just a few individuals in leadership roles. Deriv actively tries to decentralise its management capabilities to ensure company operations do not rely on any irreplaceable key person. The core value at play here is teamwork. By facilitating a systemic approach to learning and leadership, the financially underbanked are more likely to trust Deriv as their risks are greatly minimised.

The world of finance needs to be inclusive. With every technological stride we make, everybody must be in step with each other to avoid widening the financial divide. Deriv hopes that their trading platform will help solve this. An authentic brand remaining true to its core values — competence, integrity, teamwork, and customer focus — has the ability to win the trust of new customers in such a dynamically evolving market. This is echoed right from the very top. To repeat Sireau again, he comments that ‘Our strong reputation, client-focused offerings, and commitment to our mission to democratize trading sets us apart from our competitors. Our unrivalled track record speaks for itself.’