TechFinancials (LON:TECH) has confirmed the creation of the joint venture which the company detailed in earlier announcements in October and November last year. The company will be taking part in a major B2C effort run by Optionfortune Trade Limited, which is a Hong Kong registered company.

The partnership will boost the company’s footprint on the lucrative Asian market, where binary options technology providers have been facing increasing competition from local companies that reverse engineer trading platforms.

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Other technology providers in the binary options industry have been relying on partnerships with white labels. However, when a tech provider manages to secure a joint venture, such as is the case with TechFinancials, the synergy between the two becomes tighter and the platform provider may dedicate additional resources to customizing a solution for the specific necessities of a given market.

With the peculiarities of the Asian market in mind, if the joint venture of TechFinancials succeeds and manages to attract substantial client numbers from the region, the binary options provider’s stock could begin its road to recovery.

Currently the London Alternative Investment Markets (AIM) listed company’s shares are trading at 12.12 pence, which is over 55 per cent lower than the listed price of 27 pence. Since the company became public in March 2015, after an initial rally towards 48 pence per share, the firm’s stock dropped as low as 10.15 pence just before the announcement about the joint venture.

The Asia Pacific region has become something of a holy grail for binary options providers, which are looking to establish their presence beyond Europe. Emerging markets seem to be the right kind of target with relatively unsophisticated investors, however the costs of user acquisition will play a key part in the business of binary options brokers and technology providers aiming at the region.