Scope Markets Talks FMAS:23 and Africa

The Finance Magnates Africa Summit (FMAS:23) will officially be underway in just a few short days, lasting from May 8-10. The landmark event will take place at the prestigious Sandton Convention Centre in Johannesburg, South Africa. The summit will draw a record attendance and the biggest brands in Africa and beyond.

This includes Scope Markets, who will be in attendance and showcasing all that the company has to offer. Finance Magnates spoke with James Hughes, the Global Head of Marketing Scope Markets for his perspective on FMAS:23 and Africa in general.

Are you excited about FMAS:23 and how do you feel your business can directly benefit from attending an event such as this in Africa?

Yes, we are very excited to be attending FMAS:23 this year. Not only because it’s a key event for the region where we get to share and access knowledge and insights about Africa’s financial markets; but also because of the opportunities it will give us to interact and engage with the many traders, partners and providers that will be in attendance.

Although we are already active in the South African market, we see FMAS:23 as being key for us as we look to elevate our brand across the continent – especially in South Africa. We know that as a nation it has significant demand from investors, many of whom are eagerly looking for ways to access more markets and harness a wider range of products.

At Scope Markets, we can provide a one-stop solution for both institutional and direct retail customers who can leverage our expertise to partake of the rapidly growing Africa market. We are keen to discuss the kind of opportunities we can bring to local investors.

What are you expecting to see or get out of FMAS:23?

With our participation at FMAS:23, we want to underline our commitment to both the country and the continent as part of our mission of becoming a global financial services provider of choice.

As a business, we are always looking to provide access to those markets which are underserved, so bringing our industry leading experience and best-in-class products to this market is something we look forward to – as is learning from other institutional and retail clients how we can hone our proposition going forward to meet their needs. FMAS:23 provides us with the venue to do both.

There has been a lot of hype surrounding brokers and brands making a move into Africa. Does this align with your company’s goals and is this excitement justified?

Africa has a growing middle class that, by definition, has more surplus income to invest and is looking for more ways to access investment and trading opportunities. This has created increased demand for financial products which has translated into new growth potential for international brokerages and fintech providers.

Although South African traders can open an account with foreign-based brokers, Scope Markets wants to service the market better. Our FSCA-regulated office gives them the opportunity to participate in forex with an ODP-regulated broker and with the assurance they need that their trading activity and investments are under the supervision and oversight of their local regulator.

Seeing as Africa has also been underserved as a market when it comes to financial product innovation, there are no shortages of growth opportunities for the industry – something that stands to be turbo-charged given the pent-up demand. As a result, we believe the financial sector as a whole has the potential to see market outperformance right across the region.

We are already active across the continent but the hosting of the summit in Johannesburg provides us with a genuine opportunity to drive forward our ambition here. Looking more specifically at our own offering, we believe that our comprehensive regulatory position both in South Africa and other key territories across the continent gives Scope a defined edge, allowing investors to open accounts with us confident in the knowledge that they will always receive fair treatment and that we as a business are putting their needs first.

With the biggest brands on display at FMAS:23, how does yours stand out in the crowd?

Scope Markets has been actively working in Africa for several years. Our South African FSP license dates back to 2017, whilst we were awarded our ODP license in 2022. To this extent, we were keen to cement our presence in the market, which was a key part of our decision to take the lead ‘Continental’ sponsor position at the Summit.

This level of involvement also enables us to highlight in detail precisely what sets Scope Markets apart – attributes such as our people, with their relevant industry experience, our technology and how this delivers optimal trading conditions, along with our mission to innovate at every opportunity with the goal of delivering the optimal trading experience every time. We certainly aren’t here on a speculative basis as we already understand the significant potential this market holds for us.

2023 has already been a very eventful year for several industry verticals. Are there any challenges you foresee during the second half of the year and beyond, and how is your company built to overcome or address them?

Like most economies, the African continent has been affected by a series of high-profile, market-specific events of late. So far, we have seen pressures from the return to normality post-pandemic, spiralling global inflation and the energy crisis – and the remainder of 2023 seems set to include yet more uncertainty.

Is monetary policy tightening coming to an end and if so, what does this mean for the outlook for forex markets? Ultimately, however, Africa’s financial services industry continues to grow against this challenging economic backdrop, primarily as local providers look to extend levels of financial inclusion.

The last few years have been a stark reminder that we never know what is waiting around the corner. Trying to predict the challenges which lie ahead is never easy, but our use of established business protocols and having a keen eye on risk management means we are very well-positioned to navigate any potential market hiccups or diversions as they arise.

We can expect the regulatory landscape to keep evolving, with the popularity of copy trading in Africa perhaps being one specific area to focus on here. Similarly, digital assets continue to try and plot a future despite government and central bank pressures, so further developments here also seem likely.

Regardless of the hurdles we will face in the months ahead, we also know that the recent acquisition of Scope Markets by Rostro Group adds a further layer of strength to the proposition, not least given the many years of industry experience the senior management team have between them.