Product Review: Osyspro Aiming to Solve Compliance Problems for Binary Brokers

The solution is also opening the door for a new model that could make the binary options broker business more

Compliance is a vital aspect of the trading industry, and one which can take up a lot of resources. In the aftermath of the latest changes to Cypriot regulation which have prohibited cold calls and aggressive sales tactics, a number of binary options brokerages have been faced with the challenge of shifting their business model in a new direction.

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With the decreasing reliance on direct sales, the roles of account managers and customer support agents have had to be substantially reduced in order to comply with the Cyprus Securities and Exchange Commission (CySEC).

OSYSTEMS has taken charge to push the traditional business model of binary options brokers

With different brokerages tackling the changes in different ways, OSYSTEMS has taken charge of pushing the traditional business model of binary options brokers, which are heavily relying on hefty affiliate fees and substantial operational costs, into a more automatic environment.

The recent changes in the industry and the substantial regulatory backlash against a number of firms is likely to change the binary options industry forever, and OSYSPRO is the solution which OSYSTEMS has decided to bring into the market just in time for these changes.

Tackling Major Compliance Issues

The Know Your Customer (KYC) process in this industry cannot be avoided. It is essential that each broker takes the ideal steps to know everything about their client before and during the trading process in order to keep complying with the requirements of regulatory bodies and continue ensuring maximum safety of client funds.

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Working towards eluding money laundering, over the years, regulators have raised the bar on KYC obligations and firms must have customer identification and financial information on file in order to safeguard a business.

But we all know the hassle of the KYC process, it is extremely time consuming – from passport scans, to proof of residency and bank details. Despite the difficulty, it is something that certainly cannot be avoided.

Automating the KYC Procedure

Via its OSYSPRO product, OSYSTEMS has introduced something that is aiming to make life easier for brokerages and is already widely used in the forex and CFDs brokerage industry – an automated compliance bot.

Using the automated behavioral popup functionality of OSYSPRO, the bot simply does all the work for the brokerage. Human interaction and back office hassle is reduced to a minimum and focus is shifted on other aspects of having a successful business.

Let’s say a trader deposits $100 – the preset robot will get this signal and request a form of identification. Once the trader deposits a higher amount, he/she will be automatically asked for proof of address, and deposit method copy should any suspicions arise. All of this is done while the system is constantly tracking the trader’s habits and behavior.

Shifting the Industry into a New Business Model

The solution from OSYSTEMS eliminates back office operations, targets each trader specifically as well as smooths and personalizes the trader’s experience via smooth retention efforts, and most importantly, gets all the compliance work done for the brokerage.

The automated compliance process also can enable enhanced accuracy, better quality KYC, and higher level of customer service.

OSYSPRO has the potential to change the industry and allow brokers to fulfill their regulatory obligations in a significantly more effective and efficient manner, whilst significantly reducing costs. The company’s solution to the market could start a trend of revamping the traditional binary options brokerage operation models that are heavily reliant on big support staff and heavy back-office functions.

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